Credit and Loans
A measure of a borrower's creditworthiness
What is a credit rating/score?
The amount of money received after deductions, such as taxes and benefits.
What is net pay?
Shares of ownership in a company.
What are stocks?
An expense that does not change from month to month, like rent or mortgage.
What is a fixed expense?
A contract that pays out a sum of money upon the death of the insured.
What is life insurance?
Loans that are repaid over time with a set number of scheduled payments.
What are installment loans?
Payments made by a corporation to its shareholders from its profits.
What are dividends?
A fixed income investment representing a loan made by an investor to a borrower.
What is a bond?
An expense that can fluctuate, such as groceries or entertainment.
What is a variable expense?
Coverage that pays for medical and surgical expenses incurred by the insured.
What is health insurance?
A plastic card issued by a bank allowing the holder to purchase goods and services on credit.
What is a credit card?
Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods.
What is compound interest?
Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.
What are mutual funds?
A plan that outlines expected income and expenses for a certain period.
What is a personal budget?
A form of insurance that provides coverage for a policyholder's belongings in a rental property.
What is renter's insurance?
An asset that a borrower offers to a lender to secure a loan.
What is collateral?
A bank account that earns interest on the money deposited.
What is a savings account?
An increase in the value of an asset over time.
What is capital appreciation?
The loss of potential gain from other alternatives when one alternative is chosen.
What is opportunity cost?
Insurance that protects against claims resulting from injuries and damage to people or property.
What is liability coverage?
A contract between a borrower and a lender outlining the terms of the loan.
What is a loan agreement?
Savings set aside for unexpected expenses or emergencies.
What is an emergency fund?
An action taken by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares.
What is a stock split?
Non-essential expenditure that can be adjusted in the budget.
What is discretionary spending?
The amount of money a policyholder pays for an insurance policy.
What is an insurance premium?