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Unit 11: PFL
Personal Financial Literacy
| Term | Definition |
|---|---|
| credit card | a card that allows you to pay the balance over a period of time, subject to interest |
| debit card | a card that immediately deducts funds from your checking account |
| deposit | an addition of money into a bank account |
| grant | a form of financial aid, based on need, provided by the government that does not have to be repaid |
| interest | the amount of money paid on a loan or an investment |
| scholarship | a sum of money that is awarded on merit to help offset the costs of college |
| student loan | a loan set up in order to help college students pay for tuition, books, and living expenses |
| transfer | moving money from one account to another |
| withdrawal | the removal of money from a bank account |
| work-study | a financial aid program in which a college student works to pay money towards their tuition |
| ATM Surcharge | an automatic teller machine (ATM) fee banks charge when withdrawing money from different banks ATM machines |
| checking account | a bank account that a person can write checks or use debit cards against the balance to pay merchants |
| credit report | a report of an individual's credit history prepared by a credit bureau and used by a lender to determining a loan applicant's creditworthiness |
| insufficient funds | describes the circumstances of not having enough money in a checking account to make a payment or to withdraw money |
| overdraft fee | a fee charged by the financial institution for making a purchase against your checking account in which there is not enough money in the account to cover the payment. |
| savings account | a bank account that pays interest on the amount of money in the account |
| transaction | any activity with money such as a deposit, a withdrawal, or a transfer. |