1
Adding up your income, then subtracting all of your expenses.
Budget
Drawn on your personal account, the bank verifies you have sufficient funds to cover it.
Certified Check
You can potentially get a much higher rate of return with investing vs. saving, but you’re usually taking more risk.
Investing
The rise in prices for consumer goods and services over time.
Inflation
You earn interest on the money in the account and the interest you earn.
Compound Interest
Money added to an account and agree to leave it there for a certain amount of time.
Certificate of
Deposit
The potential that an investment may lose your money.
Risk
The money that hits your bank account, once you take out things like taxes, health insurance, and retirement plan contributions.
Net Income
Borrowing money with the promise to pay it back plus extra money.
Credit
A three-digit number that measures how responsible you are financially.
Credit Score
(HSA) Allows you to set aside money for health care expenses on a tax- advantaged basis.
Health Savings Account
(FDIC) A government agency that’s responsible for maintaining stability in the banking industry.
Federal Deposit Insurance Corporation
You earn interest only on the money in the account.
Simple Interest
An account that blends features of a savings account and a checking account.
Money Market Account
Provides a death benefit to your beneficiaries when you pass away.
Life Insurance
How much debt you have relative to your income.
Debt to Income Ratio
All the money you earn before any deductions or taxes are taken out.
Gross Income
You have spent more money than you had in your account.
Overdraft
The difference between what you owe and what you own.
Net Worth
Money set aside for unplanned or unexpected expenses such as car repair.
Emergency Fund
Creating a plan or strategy for reaching your financial goals.
Financial Planning
Having money knowledge as well as the ability to put it to work.
Financial Literacy
The money you owe others, such as a credit card company.
Debt