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Vocab 7
| Term | Definition |
|---|---|
| 401(k) | retirement savings investment with deferred taxes until the money is withdrawn |
| 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 | A tool for tracking checking account transactions and balances. |
| Compounding interest | Interest calculated on both the principal and previously earned interest. |
| Credit card debt | Money owed to a credit card issuer for unpaid charges, accruing interest if not paid off. |
| Debit card | cards that allow for immediate deductions from a checking account. |
| Fixed Expense | Regular, recurring costs that do not change month-to-month (e.g., rent, car payment). |
| Income | Money received, typically on a regular basis, from work, investments, or other sources. |
| Insurance | Financial products (like health, auto, or life insurance) that protect against specific risks. |
| Investment | Allocation of money into assets (stocks, bonds, real estate) with the expectation of generating profit. |
| IRA | Individual Retirement Account; a tax-advantaged account designed to help individuals save for retirement. |
| Needs | Essential expenses required for basic living (food, housing, utilities). |
| Online Banking | Managing bank accounts and conducting transactions via the internet. |
| Savings Account | A bank account that earns interest and is used to store money safely. |
| Stocks | Shares of ownership in a corporation. |
| Tax shelter | Financial arrangement to reduce or defer taxable income. |
| Variable expenses | Costs that fluctuate with usage or activity. |
| Wants | Non-essential items or services desired for comfort or pleasure. |