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Financial Literacy
Financial Security
| Term | Definition |
|---|---|
| Adjustable-rate mortgage (ARM) | a mortgage for which the interest rate changes in response to the movement of interest rates in the economy as a whole |
| Annuity | a contract sold by an insurance company that provides an investor with a series of regular payments, usually after retirement |
| Bonds | debt obligations of corporations or state or local governments |
| Capital gain | an increase in the value of stock above the price initially paid for it |
| Collision coverage | automobile insurance that protects your own car against damage from accidents or vehicle overturning |
| Deed | a document that transfers title of real property from one party to another |
| Depreciation | in real estate, the decline in value of property due to normal wear and tear |
| Disability insurance | an insurance plan that makes regular payments to replace income lost when illness or injury prevents the insured from working |
| Dividends | the part of the corporation's profits paid to stockholders |
| Equity | the difference between the market value of property and the amount owed on it |
| Estate | all that a person owns, less debts owed, at the time of the person's death |
| Estate planning | preparing a plan for transferring property during one's lifetime and at one's death |
| Fixed-rate mortgage | a mortgage on which the interest rate does not change during the term of the loan |
| Futures | contracts to buy and sell commodities or stocks for a specified date in the future |
| Homeowner's policy | insurance that protects property owners from property and liability risks |
| Individual retirement account (IRA) | a retirement savings plan that allows individuals to set aside money in tax-deferred savings up to a limit set by the government |
| Inflation | a rise in the general level of prices |
| Insurance | a method of spreading individual risk among a large group of people to make losses more affordable for all |
| Insurer | a business that agrees to pay the cost of potential future losses in exchange for regular fee payments |
| Interest | money paid for the use of money; earnings on a savings account |
| Investing | the use of savings to earn a financial return |
| Landlord | the owner of rental property |
| Lease | a written agreement that allows a tenant to use property for a specified period and rent |
| Liability coverage | insurance to protect against claims for bodily injury to another person or damage to another person's property |
| Lien | a financial claim on property |
| Life insurance | insurance that provides funds to the beneficiaries when the insured dies |
| Market value | the price for which a stock is bought and sold in the marketplace |
| Money market account | a combination savings-investment plan in which money deposited is used to purchase safe, liquid securities |
| Mortgage | a loan to purchase real estate |
| Mutual fund | a large, professionally managed group of investments |
| Personal risk | chances of loss involving income and standard of living |
| Policy | a written insurance contract |
| Policyholder | the person who owns an insurance policy |
| Power of attorney | a legal document authorizing someone to act on your behalf |
| Principal | the amount of money deposited by a saver |
| Property risk | the chances of loss or harm to personal or real property |
| Real estate | land and any buildings on it |
| Renter's policy | insurance that protects renters from property and liability risks |
| Risk management | an organized strategy for controlling financial loss from pure risks |
| Securities | stocks and bonds issued by corporations or the government |
| Security deposit | a refundable amount paid in advance to protect the owner against damage or nonpayment |
| Stockbroker | an employee of a brokerage firm who buys and sells securities for investors |
| Stockholders | shareholders; owners of a corporation |
| Tenant | the person who rents property from a landlord |
| Title | a legal document that establishes ownership |
| Vehicle Identification Number (VIN) | a unique number that identifies an automobile |
Created by:
candace.freeman
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