Vocab 1
Bank
A for-profit institution that offers personal loans, mortgages, and other services
Credit Union
A not-for-profit cooperative that offers bank services and is owned by its members
Financial Institution (2 Examples)
Bank, Credit Union
Cash
Money in the form of bills or coins
Long-term Goals
Plans that take a year or more to accomplish
Interest
A fee received or paid for the use of money
Internet Bank
A Web-only bank
Mobile Banking
A wireless service that allows financial transactions by using an app or Web browser from a mobile device
Online Banking
An electronic way to view account activity and pay bills via the Internet and an institution’s website
Short-term Goals
Plans that can be accomplished within three months to a year
Credit Card
A card authorizing the holder to buy goods and services that can be paid for later
Debit Card
A card that looks like a credit card but operates like cash; money is immediately subtracted from the cardholder’s bank account when a purchase is made
Impulse Buying
Making a purchase based on an immediate want or due to the pressure of advertising
Wants
Goods or services that make people more comfortable or content but which are not essential for survival
Needs (3 Examples)
Survival essentials, such as food, water, clothing, and shelter
Discretionary Income
Money available to spend on goods and services that are not essential
Budget
A record of income and spending and a plan for managing money
Opportunity Cost
The next best alternative given up when making a financial choice
Scarcity
The economic condition of limited resources that prevents people from having everything they want
Pay Yourself First (PYF)
To automatically save a specified amount from a paycheck for future use
Credit Score
A standardized measurement of the potential to repay a debt
Expenditures
Money that is spent on goods, services, and bills
Risk
The possibility of financial loss or physical harm
Income
Money received on a regular basis for work or through investments
Values
The ideals that are important to you and your career choice