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vocab
test
| Term | Definition |
|---|---|
| 401(k) | Retirement saving investment with deferred taxes until the money is withdrawn later |
| 529 plan | an educational investment account designed to help you prepay tuition or save for education |
| Budget | a spending and saving plan |
| Certificate of deposit | short-or long-term, interest-bearing investments offered by banking institutions |
| Check | a written order to the ban 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 |
| checkbook register | space to track your checking account deposits and withdrawals |
| Compounding interest | interest that is calculated on the balance, additional deposits,and interest earned |
| Credit card debt | the amount you owe on credit cards that you cannot pay |
| Debit card | cards that allow for immediate deductions from a 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 expense | expenses that are the same amount each month |
| income | the amount of money you earn |
| Insurance | coverage you can purchase to provide reimbursement or incase of lost |
| Investment | putting money into something with a n expectation of a financial gain |
| IRA | overall term for a retirement lan with tax 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 sich you earn compounding interest |
| Stocks | shares in a company |
| Tax shelter | investments designed to reduce the amount of your taxable income |
| Variable expenses | expenses that may be different amounts each month |
| Wants | something you desire,demand, or would like to have |