How the Rich Stay Rich
An increase in value over time
What is Appreciation
Compensation paid to employees in exchange for their time and labor
What is Wages
Mandatory contributions levied on individuals or corporations by a government entity
What is taxes
The action or process of reducing or paying off a debt with regular payments
What is Amortization
An item of value that a lender can seize from a borrower if they fail to repay a loan according to the agreed terms
What is Collateral
A specialized computer that allows you to complete bank transactions without the need to see a bank represenative
ATM
The money that a person or entity receives in exchange for their labor or products; the amount of money, property, and other item of value received over a set period of time in exchange for services and products
What is Income
A financial liability or obligation owed by one person, the debtor, to another, the creditor
What is debt
When money is given to another party in exchange for repayment of the loan principal amount plus interest
What is Loan
The ability to borrow money with the promise that you'll repay it in the future, often with interest
What is Credit
An estimate of income and expenditure for a set period of time
What is Budget
A security that represents the ownership of a fraction of the issuing corporation
What is Stock
A legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations
What is Bankruptcy
An agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you've borrowed plus interest
What is Mortgage
Generally operates as a substitute for cash or a check and most often provides an unsecured revolving line of credit
What is Credit Card
A retirement savings plan that offers significant tax benefits while helping you plan for the future
What is 401K
Equity ownership in a corporation of financial asset, owned by investors who exchange capital in return for these units
What is Share
Using your personal information - such as your name, Social Security number, or credit card number - without your permission
What is Identity Theft
The monetary charge for borrowing, or depositing money and is usually expressed as a percentage of the amount borrowed, or deposited; a charge that borrowers pay lenders for a loan
What is Interest
The maximum amount of money a lender will allow you to spend on a credit card or a line of credit
What is Credit Limit
An asset or item acquired with the goal of generating income or appreciation
What is Investment
A wage set by contract or by law as the lowest that may be paid to employees
What is Minimum Wage
Wages withheld from an employee's total earnings for the purpose of paying taxes, garnishments, and benefits, like health insurance
What is Payroll Deductions
The money that you originally agreed to pay back
What is Principal
A prediction of your credit behavior, such as how likely you are to pay back a loan on time, based on information from your credit reports
What is Credit Score