Saving
The portion of current income not spent on consumption
What is Savings?
Expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture
What is Investing?
A banking service allowing a customer's money to be handled and tracked.
What is a bank account?
Involuntary fees levied on individuals or corporations and enforced by a government entity
What is Taxes?
The time of life when one chooses to permanently leave the workforce behind
What is Retirement?
The amount of money needed to pay for the necessities and comforts currently enjoyed
What is level of living?
The profit or income generated by saving and investing
What is return?
The amount of money paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time.
What is Interest?
An employee fills this out when he or she gets hired. It tells the employer how much to withhold from pay
What is a W-4 form?
A long-standing federal insurance program to provide benefits to older adults, their survivors, and workers who become disable
What is Social Security?
The percentage rate paid on money invested or saved
What is Interest Rate?
The original amount of money invested or saved
What is principal?
An independent agency of the United States government that protects customers from the loss of their deposits if an FDIC insured financial institution fails.
What is the Federal Deposit Insurance Incorporation (FDIC)?
A federal agency that collects taxes Internal Revenue Service
What is IRS?
Employer-sponsored retirement savings accounts that offer tax benefits
What is 401k?
Specific objectives to be accomplished through financial planning.
What is Financial Goals?
How quickly and easily an asset can be converted into cash
What is Liquidity?
A bank account that allows a customer to deposit and withdraw money and earn interest on the balance.
What is a savings account?
Failure to pay your taxes which could result in fines or late interest payments or jail time in extreme cases
What is tax evasion?
Employer-sponsored retirement plans that guarantee a certain monthly benefit for life
What is a Pension?
Everything an individual or household owns that could be sold for cash
Dividing up the holdings in your portfolio
What is asset allocation?
A certain amount of money today has different buying power than the same amount of money in the future
What is time value of money?
The amount of an individual's take-home pay after taxes and other deductions have been taken out
What is net income?
Tax-advantaged retirement savings accounts that are established by individuals rather than employers
What is a Individuals Retirement Account (IRA) ?