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Vocab 7
| Term | Definition |
|---|---|
| 401(k) | Retirement savings investment with deferred taxes until the money is withdrawn later |
| 529 Plan | An educational investment account designed ot help you prepay tuition or save for education |
| Budget | A spending and saving plan |
| Certification of deposit | Short or long term, interest bearing investments offered by banking institutions |
| Check | A written order to the bank 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 replacement or reimbursement in case of loss. |
| Investment | Putting money into something with an expectation of a financial gain. |
| IRA | Overall term for a retirement plan 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 which you earn compound interest. |
| Stocks | Shares in a company |
| Tax Shelter | Investments designed to reduce the amount of your taxable income. |
| Variable Expenses | Expenses that may different amounts each month. |
| Wants | Something you desire, demand or would like to have. |