Unit 1
A person or organization that uses a product or service
Consumer
$500 that is used only in the event of something urgent
Emergency Fund
A written cash flow plan
Budget
A detailed report of an individual's credit history
Credit report
A program that allows students to work part time while continuing their studies
Work Study
A system by which goods and services are produced and distributed
Economy
The five steps to financial success
Five Foundations
A copy of each check you write
Carbon Check
Type of a card issued by a bank that allows users to finance a purchase
Credit Card
A form of financial aid that does on need to be repaid, rewarded on the basis of academic or athletic achievements
Scholarship
A debt evidenced by a note which specifies the amount, interest rate, and date of repayment
Loan
Saving money over time for a large purchase
Sinking Fund
To match your bank account statement with your checkbook
Reconcile
A decrease of loss in value
Depreciation
A form of federal or state financial aid that does not need to be repaid
Grant
The granting of a loan and he creation of debt. Any form of deferred payment
Credit
Percentage paid to a lender for the use of borrowed money
Interest Rate
Occurs when money is withdrawn from a bank account and the balance goes below 0
Overdraft
A yearly fee that's charged by the credit card company for the convenience of the credit card
Annual Fee
A form that is completed annually to assess financial need
FAFSA
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
Financial Literacy
Interest paid on interest previously earned
Compound Interest
An item that is bought without previously planning it
Impulse Purchase
A measure of an individual's credit risk
Credit Score
People who you can confide in and talk about your purchases
Mentor