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Chapter 7 Vocab
| Term | Definition |
|---|---|
| 401 (k) | retirement savings investment with deferred taxes until the monet is withdrawn later |
| 529 plan | an education investment account designed to help you prepay tuition ot save for education |
| Budget | an spenfinand saving plan. |
| Certificate of deposit | short or long term interest bearing investments offers and banking institutions. |
| Check | a written order 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. |
| check book register | Space to track your checking account deposits and withdraws. |
| Compounding interest | Interest that is calculated to the balance, deposits, and interset earned. |
| Credit card debt | The amount you owe on credit cards that you cannot pay. |
| Debit card | Cards that allow you to withdraw money from your checking account. |
| FDIC | Federal Insurance designed to protect your money. |
| Financial plan | A blueprint containing your personal goals, timeline for reaching your goals, and an understanding of how to save to reach your goals. |
| Fixed expence | Expences that are the same each month. |
| Income | The amount of money you earn. |
| Insurance | Coverage you can purchase to provide reimbursement or replacement in case of loss. |
| Investment | Putting money into something with an expectation of financial gain. |
| IRA | Overall term for a retirement plan with taxes advantages. |
| Needs | Something that is necessary for you to live your life. |
| Online banking | Option for paying your bills over the internet. |
| Savings account | A bank account on which you earn compounding interest. |
| Stocks | Shares in a company. |
| Tax shelter | Investments designed to reduce the amount of your taxable income. |
| Variable expense | Expenses that may be in different amounts each month. |
| Wants | Something you desire, demand, or would like to have. |