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vocab 7
| Term | Definition |
|---|---|
| 401(k) | retirement saving investment with deferred taxes until the money is withdrawn later.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 information by date in reverse order. |
| Compounding interest | interest that is calculated on the balance additional deposits and interest earned. |
| Credit card debit | 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 blue print 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. |
| Income | the amount of money you earn. |
| Insurance | coverage you can purchase to provide reimbursements or replacements 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 accounts | 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. |
| Wants | something you desire,demand, or would like to have. |