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chapter 7
| Term | Definition |
|---|---|
| a.401(k) | a retirement savings investment that allows individuals to save for retirement and defer taxes until the money is withdrawn later |
| B.529 plan | is an educational investment account designed to help you prepay tuition or save for education. |
| c.budget | a spending and savings plan |
| D.certificate of deposit | short or long term interest |
| E.check | a written order to the bank to take money from your account to pay a person or business. |
| F. checking account | a service provided by banking intuit tions to allow you to deposit and withdraw mooney. |
| G. checkingbook register | space to track your checking account deposits and withdrawals |
| H.compounding interest | interest is calculated on the bal ance,additional deposits,and interest eamed |
| I. credit card debt | the amount you owe on credit cads that you cannot pay |
| J.debit card | card that allow for immediate deductions from a checking accunt |
| K. FDIC | federal insurance designated to protect youtr money |
| L. financial plan | a blueprint containing your personal goals timeline for reaching your goas.and an understanding of how to save to reach your goals |
| M. Fixed expense | expenses that are that same amount each month |
| N. Income | the amount of money you earn |
| O. insurance | coverage you can purchase to provide reim bursement or replacement in case of loss |
| P. investment | putting money into something with an expectation of a financial gain |
| Q. IRA | overall term for a retirement plan with tax advantages |
| R. needs | something that is necessary for you to live your life |
| S. online banking | option for paying your bills over the internet |
| T. savings account | a bank account on which you earn compounding interest |
| U. stocks | shares in a company |
| V. tax shelter | investments designed to reduce the amount of your taxable income |
| W. variable expenses | expenses that may be different amounts each month |
| X. wants | something you desire demand or would like to have |