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Account Balance
The dollar amount of money in an account, such as
a savings or checking account; also referred to the
amount owed on a loan or credit card.
Algebra
The study of mathematical relationships and solving
for unknown quantities by using letters and symbols
for numbers.
Annual Fee
A once-a-year fee charged by many credit card issuers
in addition to interest
charged on purchases.
Annual Income
The total amount of money you receive in a year;
includes wages, bonuses, tips, gifts of money, and proceeds from the sale of personal
items.
Associate’s Degree
The completion of two years of coursework
at a community, junior, or two-year college; can be applied toward the completion
of a
bachelor’s degree; also referred to as a two-year degree.
ATM
Automated Teller Machine; an electronic device that
allows you to make bank transactions, such as bank
deposits and withdrawals.
Bachelor’s Degree
The completion
of four years of coursework at a university or
four-year college; also referred to as an undergraduate degree or
four-year degree.
Budget
A plan for spending and saving money; based on
financial goals during a given time period.
Career
Lifetime
work that a person strongly believes in; provides
an income.
Cash Flow
Income–Expenses
= Cash Flow; the movement of money you receive
to money you spend to the
amount left over.
Check
A
written “order” for money written on
a standard form; a way to use
money in the
bank without having to go the bank
in person
and take
money
out.
College
Offers academic
courses to high school graduates for completing a
two- or four-year degree (associate’s
and bachelor’s
degrees—also
referred to as
undergraduate degrees).
Compounding
Earning
interest on interest.
Credit History
A record of how a person pays bills and how much debt a person has.
Credit Rating
A
rating given to a person by credit reporting agencies
based on his or her ability
to pay back money
borrowed from a financial
institution.
Credit Report
An historical
account of how a person has used credit.
Credit
An
amount of money someone or a financial corporation
is willing to loan another person;
based on trust and
the expectation that the
money will
be repaid at a later date, usually with interest.
Debt
The
entire amount of money a person owes to lenders.
Deposit
Placing
money in a bank or credit union account for safekeeping.
Earned Interest
The payment a person
receives for allowing a financial institution or
corporation to use his or
her money.
Earning Power
Your ability
to earn higher hourly wages or annual salaries; based
on your knowledge,
skills,
quality of work;
getting along with
co-workers; and your ability to set yourself
apart (examples: saving your employer
money, completing a large project for
your
employer).
Education
The level
of formal knowledge and training a person
acquires in a lifetime.
Employee Benefits
Additional
benefits (beyond a paycheck) offered by employers,
such
as health insurance, education
assistance,
and a retirement
savings
plan.
Expenses
Any money a person
spends or gives away.
FAFSA
Free Application for Federal
Student Aid; the application used
to apply for
a student loan
from
the government.
Finance Charge
The
actual dollar cost of using credit, which is
calculated by the
lender.
Financial Aid
Money
used to offset college expenses; awarded to
students based on
financial need or
academic merit.
Fixed Expenses
Expenses
that are the same exact amount every
time,
such
as bus fair,
parking
fees, or a
car loan payment.
Four-Year
Degree
See Bachelor’s Degree
Geometry
The study of lines,
angles and three dimensional
shapes; useful
for
measuring and designing
a variety of things such
as clothing patterns,
furniture,
homes, and appliances.
Goal
A
statement of something
a person wants or needs
to do.
Master's degree
See
Post-graduate degree
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Income
Any money a person receives.
Initial Deposit
The first deposit of money into a savings or checking account.
Interest
Payment for the use of money.
Interest Rate
The cost of borrowing money, expressed as a percentage, usually over a period
of one year.
Job
Work that helps you pay the bills.
Late Fee
A penalty on all types of credit, such as credit cards or a school loan, for
making a payment after its due date.
Loan Term
The length of time covered by a loan.
Needs
The essentials or basics of life, such as water, food, shelter and clothing.
Pawn Shop
A place that offers loans and uses
personal items for collateral, or security, until you
pay the money back in a specified time. If you don’t
repay the loan in the specified time, the pawn shop
can sell your personal items and keep the proceeds
as a profit.
Payee
The person to whom you write a check.
Post-graduate degree
Two to six years of specialized coursework after receiving
a four-year (bachelor’s) degree; also referred to as a Master's degree.
Principal
The amount of money someone is willing to loan you;
also referred
to the amount you still owe on a loan.
Private University or College
An academic institution financially supported
by student tuition and alumni donations; does not receive government funding
and is usually more expensive than a public institution.
Public University or College
An academic institution financially supported
by state funds, which are essentially made up of taxes the public pays. Public,
or state, universities require students to pay tuition, but usually not as much
as a private university requires.
Rate of Interest
See Interest Rate
Rule of
72
How long it takes for money to double in
value.
Savings
Money set aside for
goals.
Savvy
To know or understand; to “get
it”;
common sense; street-smart.
Scam
A game or scheme
to steal money.
Spending Leak
Small purchases
of unnecessary items, such as soda, ring tones, and
fast food that
add up to a lot of money over time.
Spending Plan
Another
term for budget; see Budget.
Student Loans
Financial
aid in the form of low-interest, government loans
that must be repaid, but not until you graduate from college; based on financial
need.
Taxes
Fees placed on income, property, or
goods to support government programs.
Technical School
See
Trade School
Trade School
Offers specific coursework
for learning specific skills for specific occupations
(examples: carpenter, truck driver, auto
body mechanic, beautician, cosmetologist, dental
or medical assistant); also referred to
as
a vocational or technical school.
Two-Year Degree
See Associate’s
Degree
Undergraduate degree
See Bachelor’s
Degree
University
Offers academic courses to
high school graduates for completing four-year bachelor’s
degrees (undergraduate degrees) and graduate degrees,
which require from two to six years of additional course work.
Values
The
beliefs and practices in a person’s life that are very
important.
Variable Expenses
Expenses that are not fixed,
such as food and entertainment expenses.
Vocational
School
See Trade School
Wants
Items, activities,
or services that increase the quality of life.
Withdrawal
Taking
money out of a checking or savings account.
Work Study
A
federally funded program for part- or full-time college
students who need financial aid to pay for college
expenses. |
