Vocab
Amount of time that a creditor allows before charging extra fees
Grace Period
Charge levied against a client for not paying a bill by its due date
Late Fee
Writing a check for more than is in a checking account; the bank will charge a fee if this occurs
Overdraft
A government fee on business and individual income, activities, or products
Tax
Individual Retirement Account: an investment with specific tax advantages
IRA
Something that is lent; allowed to be issued for a period of time
Loan
Plan provided by an employer or a self-employed individual for retirement
Retirement Plan
The assets and debts that a person leaves at death
Estate
A general increase in the price of goods over time
Inflation
Smallest amount a consumer is required to pay on a revolving charge account in order to keep the account in good standing
Minimum Payment
A financial institution deposit account that pays interest and allows withdrawals
Savings Account
Total dollar amount paid for credit
Finance Charge
Money you are paid for lending money or the amount of money that is added to the money you borrowed
Interest
A long-term loan to buy real estate
Mortgage
FICA (Federal Insurance Contributions Act); federal government program that provides retirement, survivor's, and disability benefits; funded by an income tax
Social Security
Putting money into assets (like stocks, bonds, mutual funds, etc.) to help you reach your financial goal
Investment
An investment tool that pools money of many shareholders and invests it in a diversified portfolio of securities such as: stocks, bonds, and money market assets
Mutual Fund
An investment in a share of a company that is sold to the public
Stock