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Vocab 7
| Question | Answer |
|---|---|
| 401(k) | retirement savings investment with deferred taxes until the money is withdrawn later.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 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 froma 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 expenses | 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 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 you 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 taxsble income. |
| Variable expenses | expenses tha may be different amounts each month |
| wants | something you desire, demand or would like to have |