click below
click below
Normal Size Small Size show me how
chapter 7
| Term | Definition |
|---|---|
| 401(k) | retirement savings investment with deferred taxes until the money is withdrawn later |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-0r 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 institu-tions 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 bal-ance, 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 au 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 reim-bursement or replacement in case of loss |
| Investment | putting money into something with an expec-tation 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 bonking | 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 expenses | expenses that may be different amounts each month |
| Wants | something you desire, demand,or would like to have |