Personal Finance and Financial Literacy - Introductory

Do the words savings and income interest you? Then you'll profit from learning these personal finance terms. Review credit, stocks and bonds, loans, bankruptcy, and much more. This list is bound to be a good investment.
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Full list of words from this list:

words only definitions & notes
  1. 401-k plan
    a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments yourself
  2. asset
    a useful or valuable quality
  3. ATM
    an unattended machine (outside some banks) that dispenses money when a personal coded card is used
  4. balance
    the difference between the credit and debit of an account
  5. balanced budget
    a budget is balanced when current expenditures are equal to receipts
  6. bankruptcy
    a legal process for a corporation declared to be insolvent
  7. benefit
    financial assistance in time of need
  8. bond
    a certificate of debt issued by a government or corporation
  9. bonus
    extra pay or reward given to employees for good performance
  10. bounce
    refuse to accept and send back
  11. budget
    a summary of intended expenditures
  12. checking account
    a bank account against which the depositor can draw checks that are payable on demand
  13. check register
    a register of checks issued (usually in numeric order)
  14. commercial bank
    a financial institution that accepts demand deposits and makes loans and provides other services for the public
  15. comparison-shop
    compare prices for a given item
  16. contract
    a binding agreement that is enforceable by law
  17. cosign
    sign and endorse (another person's signature), as for a loan
  18. coupon
    a certificate that can be redeemed for value as needed
  19. credit
    an estimate of ability to fulfill financial commitments
  20. credit card
    a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
  21. creditor
    a person to whom money is owed by a debtor
  22. credit union
    a cooperative depository financial institution whose members can obtain loans from their combined savings
  23. debit card
    a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
  24. debtor
    a person who owes a creditor
  25. deduction
    a decrease in the gross amount on which a tax is calculated
  26. deposit
    payment given as a guarantee that an obligation will be met
  27. dividend
    earnings of a corporation distributed to its shareholders
  28. endorse
    sign as evidence of legal transfer
  29. expense
    a financial burden; money that must be paid out
  30. financial institution
    an institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets
  31. health insurance
    insurance against loss due to ill health
  32. impulse-buy
    buy on impulse without proper reflection
  33. income
    the amount of money one makes over a period of time
  34. inflation
    a general and progressive increase in prices
  35. insurance
    promise of reimbursement in the case of loss
  36. interest
    a fixed charge for borrowing money
  37. interest rate
    the percentage of a sum of money charged for its use
  38. investment
    laying out money or capital in an enterprise
  39. lender
    a person or institution that loans money
  40. loan
    the temporary provision of money (usually at interest)
  41. mortgage
    a conveyance of property as security for repaying a loan
  42. negotiable
    legally transferable to the ownership of another
  43. net income
    the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)
  44. notary public
    someone legally empowered to witness signatures and certify documents
  45. obligation
    the state of being bound to do or pay something
  46. overdraft
    a draft in excess of the credit balance
  47. overtime
    work done in addition to regular working hours
  48. personal check
    a check drawn against funds deposited in your personal checking account
  49. personal identification number
    a number you choose and use to gain access to various accounts
  50. profit
    excess of revenues over outlays in a given period of time
  51. rebate
    a refund of some fraction of the amount paid
  52. safe-deposit box
    a fireproof metal strongbox for storing valuables
  53. salary
    fixed payment for services
  54. sales tax
    a tax based on the cost of the item purchased and collected directly from the buyer
  55. savings
    a fund of money put aside as a reserve
  56. savings account
    a bank account that accumulates interest
  57. scholarship
    financial aid provided to a student on the basis of merit
  58. stock
    capital raised by a corporation through the issue of shares
  59. tradeoff
    an exchange that occurs as a compromise
  60. wage
    payment for work
  61. warranty
    written assurance that a product or service will be provided
  62. will
    a document declaring wishes regarding disposal of property
Created on Wed Feb 01 14:25:22 EST 2017 (updated Mon Apr 03 09:34:43 EDT 2017)

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