Key Terms
Debt
Money borrowed from a lender, often with the agreement to repay the amount borrowed plus interest over a specified period.
Credit
The ability to borrow money or obtain goods and services with the promise of repayment at a later date.
Net Worth
The difference between an individual's assets (e.g., cash, investments, property) and liabilities (e.g., debts, loans).
Go to day 5 "Parts of a Check" worksheet, what goes in #1 on a work check?
Who you are payings name.
Go to day 5 "Parts of a Check" worksheet, what goes in #9 on a personal check?
Payer signature line, the signature of the person who is writing the check.
Investing
The process of using money to purchase financial assets (e.g., stocks, bonds, real estate) with the expectation of generating a profit or income over time.
Credit Score
A numerical representation of an individual's creditworthiness, based on credit history and financial behavior, used by lenders to assess the risk of lending money.
Financial Goals
A specific objective an individual sets to achieve a desired financial outcome, such as saving for retirement or buying a home.
Go to day 5 "Parts of a Check" worksheet, what goes in #2 on a work check?
The amount of money you are paying written out.
Go to day 5 "Parts of a Check" worksheet, what goes in #8 on a personal check?
Check number
Saving
The act of setting aside money regularly for future use or emergencies, typically in a savings account or other savings vehicles.
Compound Interest
Interest earned on both the initial principal amount and any interest previously earned, allowing savings and investments to grow exponentially over time.
Inflation
The gradual increase in the general price level of goods and services, resulting in the decrease in the purchasing power of money over time.
Go to day 5 "Parts of a Check" worksheet, what goes in #3 on a work check?
Memo line, specifics on what you are paying for.
Go to day 5 "Parts of a Check" worksheet, what goes in #7 on a personal check?
Date of when the check was written.
Budget
A plan that outlines an individual's or organization's expected income and expenses over a specific period, typically a month.
Expense
The money spent on various goods, services, and bills, such as rent, groceries, utilities, and entertainment.
Income
The money earned or received from various sources, such as salary, wages, investments, and business profits.
Go to day 5 "Parts of a Check" worksheet, what goes in #4 on a work check?
Bank routing number.
Go to day 5 "Parts of a Check" worksheet, what goes in #5 on a personal check?
Checking account number.
Saving Goal
A specific financial target that an individual sets to save a certain amount of money within a defined period for a particular purpose.
Emergency Fund
A savings fund set aside to cover unexpected expenses or financial emergencies, such as medical bills or car repairs.
Financial Planning
The process of setting specific financial goals, creating a budget, and developing strategies to achieve those goals.
Go to day 5 "Parts of a Check" worksheet, what goes in #6 on a work check?
Amount Bow, the amount of money written in number form.