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Financial Literacy
Business Education Vocabulary
| Term | Definition |
|---|---|
| ALLOCATION | A SUM OF MONEY PUT ASIDE FOR A SPECIFIED PURPOSE |
| BONDS | AN AGREEMENT TO LEND MONEY TO A BORROWER FOR A PERIOD OF TIME FOR WHICH YOU WILL BE PAID INTEREST. |
| CERTIFICATE OF DEPOSIT | A FINANCIAL ACCOUNT THAT HOLDS YOUR MONEY ON DEPOSIT FOR A SPECIFIC PERIOD OF TIME. |
| HIGH-RISK INVESTMENT | AN INVESTMENT IN WHICH YOU STAND A GREATER CHANCE OF LOSING MONEY. |
| INTEREST | A FEE CHARGED FOR BORROWING MONEY. |
| MATURITY | A BOND INVESTOR CAN RECEIVE THEIR INTIAL INVESTMENT ON THIS DATE |
| MONEY MARKET DEPOSIT ACCOUNT | OFFERED BY A BANK OR CREDIT UNION, THIS ACCOUNT WORKS LIKE A CHECKING ACCOUNT EXCEPT THE NUMBER OF TRANSACTIONS PER MONTH IS LIMITED. IT PAYS HIGHER INTERST RATE THAN A SAVINGS ACCOUNT. |
| STOCK | SHARES REPRESENTING OWNERSHIP OF PART OF A COMPANY. |
| VENTURE | A BUSINESS UNDERTAKING INVOLVING RISK IN THE HOPE OF PROFIT |
| LOW-RISK INVESTMENT | AN INVESTMENT IN WHICH YOU STAND A LESSER CHANCE OF LOSING MONEY |
| BUDGET | A FINANCIAL PLAN TO BALANCE SPENDING AND SAVINGS |
| REINVEST | TO TAKE MONEY YOU HAVE EARNED FROM YOUR BUSINESS, AND PUT IT BACK INTO YOUR BUSINESS TO MAKE IT. |
| COMPOUND INTEREST | INTEREST THAT IS PAID ON INTEREST THAT YOU HAVE ALREADY EARNED. |
| SIMPLE INTEREST | PRINCIPAL * INTEREST RATE * TIME |