Bank Accounts
A safe place to keep money that will be used often, earning little to no interest.
Checking Account
A card linked to a bank account which allows the owner to pay for a purchase and have the money directly deducted from her bank account.
Debit card
A share (part ownership) in a company that can be bought and sold.
Stock
An Individual Retirement Account
IRA
A number assigned to a person based on their creditworthiness (history of paying off loans and credit cards, amount of debt, number of open accounts, etc..)
Credit Score
A risk-free place to keep money that you won’t need to access too often. This account earns a small amount of interest.
Savings Account
A plastic card that is only good at a particular store (or group of related shops). Examples: Target, Gap, Kohl’s…
Store charge card
A collection of stocks and/or bonds. Also known as a portfolio.
Mutual Fund
A retirement account where one puts money into the account without being taxed on it, but then does pay taxes on it once they withdraw the money.
Traditional IRA
Known as a CD
Certificate of Deposit
Money can be withdrawn from this account by banks, ATMs, writing checks, or using debit or credit cards linked to this account.
Checking Account
A card that allows the owner to borrow money to pay for goods & services in agreement that the cardholder will pay back the borrowed money, plus any interest by the billing date or over time.
Credit Card
A lower risk investment option with a fixed interest rate, for a fixed time period.
Bond
A retirement account where one puts money into the account after paying income taxes on it, and then is able to withdraw the funds tax-free upon retirement.
Roth IRA
Lenders use this number to decide how much to loan the person, how long they have to pay it back, and what the interest rate will be.
Credit Score
A type of account that one can put tax-free money into to use for certain medical expenses.
Health Savings Account
Examples: Visa, Mastercard, Discover, American Express.
Credit Card
You buy a small or a very tiny portion of a company when you purchase this, and the value changes according to the performance of the company as well as other factors.
Stock
A product offered by the government where a buyer loans money to the government with a guaranteed promise that she’ll earn back the money loaned plus interest in the future.
US Savings Bonds
Money kept in this type of account isn't quite as accessible. Banks typically limit the number withdrawals from this account.
Savings Account
Generally, these cards do not allow the user to go into debt because the money is coming directly out of your checking account.
Debit Card
A way to have a variety of investments, which is really another way of saying that you won’t have all your eggs in one basket.
Mutual Fund
A product offered by banks where the customer gives a lump-sum deposit (certain amount of money), agrees to leave it untouched for an agreed upon period of time, and will earn interest on it in exchange.
Certificate of Deposit