Savings
interest paid on interest previously earned; credit daily, monthly, quarterly, or semiannually
what is Compound Interest?
a measure of an individual's credit risk; calculated from a credit report using a standardized formula
what is a Credit Score?
the process of quantifying the costs and benefits of a decision
what is a Cost-Benefit Analysis?
refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.
what is Brand Recognition/Awareness?
a written cash flow plan
what is a Budget?
five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the first foundation
what is an Emergency Fund?
preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments
what is Debt Snowball?
process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
what is Foreclosure?
feeling regret or concern after making a large purchase
what is Buyer's Remorse?
a summary that shows total income and spending for a given time period
what is a Cash Flow Statement?
percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
what is the Interest Rate?
an interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time
what is an Introductory Rate?
the difference between the wholesale price and retail price
what is Markup?
to buy an item with credit; paying over time
what is Financing?
a copy of each check you write
what is a Carbon Check?
the five steps to financial success
what are the Five Foundations?
time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term
what is a Loan Term?
the ability to walk away from a purchase when negotiating
what is Walk-Away Power?
refers to the financial opportunity that is given up because you choose to do something else with your money
what is Opportunity Cost?
series of envelopes that are divided into categories and are used to store cash for planned monthly expenses
what is the Envelope System?
saving money over time for a large purchase
what is a Sinking Fund?
an expense, such as a charitable contribution, that can be deducted from one's taxable income
what is a Tax Deduction?
type of yard sale with more items, usually the entire contents of a household
what is an Estate Sale?
the promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness)
what is Branding?
a cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero
what is a Zero-Based Budget?