Money Management
Expenses that stay the same each month:
fixed expenses
A record of your borrowing and payment history.
credit report
A share of ownership in a company
stock
The regular payment you make for coverage.
premium
a mandatory financial charge or contribution imposed by a government on individuals or entities
tax
Expenses that fluctuate in amount and/or payment frequency:
variable expenses
A fee paid to the lender for using their money.
interest
The complete collection of all your investments
portfolio
The amount you pay out-of-pocket before the insurer starts paying.
deductible
a mandatory financial charge or contribution imposed by a government on individuals or entities
progressive tax
PYF stands for:
Pay Yourself First
The maximum amount you can borrow on a credit card or line of credit.
credit limit
The first time a company sells its stock to the public
A formal request for payment after a loss.
claim
A person you financially support (typically a child or relative) who can be claimed on your tax return, potentially qualifying you for credits and other tax benefits.
dependent
an estimate of income and expenditure for a set period of time
budget
The time between the end of a billing cycle and the payment due date, before interest accrues
grace period
The strategy of spreading investments across different assets to reduce risk.
diversification
The extent of protection against financial loss
Amounts subtracted from your gross or adjusted gross income to determine your taxable income.
deductions
Income not spent, set aside for future use.
saving
Assets pledged to secure a loan
collateral
a collection of investments (like stocks) that automatically copies a specific market group, such as the S&P 500
index fund
A fixed amount you pay for a covered service.
copayment (copay)
A direct dollar-for-dollar reduction of your final tax bill (tax liability).
tax credit