Credit/debit
What is a credit limit
The maximum amount that may be borrowed on a credit card
What is bond rating?
A measurement of the likelihood that a bondholder will be paid back
What is the 50/30/20 rule
A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment
What is active trading
Buying and selling investments - typically individual stocks and funds - within a short time frame (from seconds/minutes to days/weeks) in hopes of making quick profits from the small price changes. Research shows that 95% of active traders lose money.
What is interest
A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card
What is credit union
A nonprofit financial institution that is owned by its members and organized for their benefit
What is a brokerage account?
An account that lets individual investors trade stocks, bonds, mutual funds, and other investments
What is budget?
A plan of your expected income and how you will use it to meet your expected expenses over a period of time
What is asset allocation
Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash
Impulse Buying
The buying of goods without planning to do so in advance, as a result of a sudden whim or urge
What is a debit card
A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check
What is a bull market
A market in which there is increased stock trading and rising stock prices
What is cash envelope budget
A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes according to budget categories. Spending occurs only from the corresponding envelopes.
what is a asset class
A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)
What is living paycheck to paycheck
Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing
What is default?
Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
What is a capital gain
Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for
What is cost of living
The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare; often used when comparing how expensive it is to live in one city versus another
A market in which prices are falling, encouraging selling.
What is Maintenace fee
A monthly fee that some banks charge to provide access to checking or savings accounts
What is crowdfunding ?
The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet
What is a capital gain tax
A tax levied on profit from the sale of property or an investment
What is down payment
A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase. The buyer will often take out a loan to finance the remaining balance.
What is bond?
A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date
what is low balance alert
A notification that lets you know if the balance in your checking account goes below a set amount