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vocab 7
| Term | Definition |
|---|---|
| 401(k) | retirement saint investment with deferred taxes until the money is withdrawn later |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 on your account to allow you to deposit |
| Checking account | a service provided by banking institutions to allow you to deposit and withdraw money |
| Check book 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 debts | the amount you owe on credit cards that you can not 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 persona goals timeline for reaching your goals and an understanding of how to save to reach your goal |
| Fixed expense | expense that are the same amount each month |
| Income | the amount of money you earn |
| Insurance | coverage you can put to provide reimbursement to replace in case of loss |
| Investment | putting money into something with an expectation of a financial pain |
| IRA | overall term for a retirement plan with tax advantages |
| Needs | something that is necessary for you to live your live |
| online banking | option for paying your bills over the Internet |
| Saving account | a bank account on which you earn compounding interest |
| Stocks | shares in a company |
| Tax shelter | investment 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 |