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Vocab 7
| Question | Answer |
|---|---|
| 7401(k) | Retirement savings investment with deferred taxes until the money is withdrawn later.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. |
| Compound 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 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. |