Insurance
This type of life insurance covers you for only a fixed period of time.
What is term life insurance?
This is an investment that pools money from many people and uses the money to buy many stocks and/or bonds.
What is a mutual fund?
This government agency guarantees your deposits in a bank up to $250,000.
What is the FDIC?
This type of financial institution charges much higher interest rates on loans than banks or credit unions.
What is a consumer finance company?
These taxes are taken out of your paycheck and used to pay for elderly people's health care.
What is Medicare?
This is the name of the money you pay every month to have an insurance policy.
What is a premium?
This is a type of tax deferred retirement account that you control. You don't pay taxes on the income from it until after you retire.
What is an IRA?
A type of interest that grows not only on the principal but also on all accumulated interest over time.
What is compound interest?
This number is used by lenders to determine how much they charge you for interest on loans.
What is your credit score?
These taxes are taken out of your paycheck by the federal government and used to provide income to elderly people.
What is Social Security?
This is the money you pay out of pocket when you need to use insurance.
What is a deductible?
This is an investing technique in which you spread your money around different types of investments.
What is diversification?
A for-profit corporation owned by shareholders that takes deposits and makes loans and offers checking accounts.
What is a bank?
This includes all the records of loans you have taken out and paid back over your life.
What is your credit history?
Your wages AFTER taxes and deductions.
What are net wages?
This type of auto insurance covers the cost to repair your vehicle when you crash.
What is collision?
An investment that is a loan to a corporation or a government.
What is a bond?
The interest rate that you use to compare different loans with different characteristics.
What is annual percentage rate (APR)?
Property that is used by a lender to secure a loan (the bank takes the property if you don't repay the loan).
What is collateral?
Expenses that do not change from month to month (like rent, mortgage, or car payment).
What are fixed expenses?
This type of insurance pays your bills (food, rent, gas, etc.) when you are hurt and you can't work.
What is disability insurance?
An investment that is a share of ownership in a corporation.
What is a stock?
A non-profit membership organization that offers checking accounts, savings accounts, and loans.
What is a credit union?
This type of loan has no interest if paid back after a month. If you're stupid enough not to pay it back in a month, you pay compound interest compounded monthly.
What is a credit card loan?
Expenses that change from month to month (like food, entertainment, or vacation).
What are variable expenses?