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Ch. 7 Finances
Investigating Your Career, 2nd ed; Chapter 7: Understanding Finances
| Term | Definition |
|---|---|
| needs | Things that are necessary for you to live your live. |
| wants | Things you desire, demand, or would like to have for reasons beyond survival and basic comfort. |
| check | A written order to the bank to take money from your account to pay a person or business. |
| checking account | A service provided by banking institutions to allow you to deposit and withdraw money. |
| FDIC | Federal insurance designed to protect your money. |
| checkbook register | Provides you space to track your checking account deposits and withdrawals. |
| online banking | An option for paying your bills over the Internet. |
| debit cards | Cards that allow for immediate deductions from your checking account. |
| savings account | A bank account on which you earn interest. |
| financial plan | A blueprint containing your personal goals, a timeline for reaching your goals, and an understanding of how to save to reach the goals. |
| budget | A spending and savings plan. |
| income | The amount of money you earn. |
| fixed expenses | Expenses that are the same amount each month. |
| variable expenses | Expenses that may be different amounts each month. |
| credit card debt | The amount you owe on credit cards that you cannot pay. |
| insurance | Coverage you can purchase to provide reimbursement or replacement in the case of loss, property damage, illness, or death. |
| investment | Putting money into something with an expectation of a financial gain. |
| stocks | Shares in a company. |
| certificates of deposit (CDs) | Short- or long-term, interest-bearing investments offered by banking institutions. |
| tax shelters | Investments designed to reduce the amount of your income that can be taxed. |
| 529 Plan | An educational investment account designed to help you prepay tuition or save for education. |
| 401(k) | A retirement savings investment that allows individuals to save for retirement and defer taxes until the money is withdrawn later. |
| IRA (Individual Retirement Account) | An overall term for a retirement plan with tax advantages for retirement savings. |
| compounding interest | Interest that is calculated on the balance, additional deposits made, and interest earned in a savings account. |
Created by:
sgillett