Saving

50-20-30 Rule

50-20-30 Rule

A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending

Certificate Of Deposit (CD)

A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time

Compound Interest

Reinvesting earned interest back into the principal to allow money to grow exponentially over time

Cost-Push Inflation

Inflation caused by an increase in production costs, but demand is the same

Demand-Pull Inflation

Inflation caused by an increase in demand, but supply is the same

Direct Deposit

An automatic electronic deposit of net pay to an employee's designated bank account

Emergency Fund

Money set aside for unanticipated expenses or loss of income

Federal Deposit Insurance Corporation (FDIC)

The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor

FOMO (fear of missing out)

The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website

Health Savings Account (HSA)

An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses

Inflation

The rate at which the price of goods increases and consumer purchasing power decreases over time

Interest

The amount you earn as a benefit of depositing money in an interest bearing account

Impulse Buying

The buying of goods without planning to do so in advance, as a result of a sudden whim or urge

Living Paycheck to Paycheck

Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing

Maintenance Fee

A monthly fee that some banks charge to provide access to checking or savings accounts

Minimum Balance

A certain amount of money that must be kept in an account as required by that particular financial institution

Monetary Inflation

Inflation caused by growth in the economy's money supply

Money Market Savings Account

A type of savings account that may allow debit card and check writing privileges

National Credit Union Administration (NCUA)

The U.S. administration insuring deposits in U.S.credit unions against credit union failure up to $250,000 per individual depositor

Online Savings Account

A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch

Pay Yourself First

A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases

Principal

Original amount of money saved or invested, separate from interest or earnings

Roth IRA

An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year

Rule Of 72

A popular trick to find out how many years it will take your money to double depending on what interest rate you are receiving

Simple Interest

Interest paid on the principal alone

Transaction Fee

A fee that is charged if the number of withdrawals from your savings account exceeds the federal limit, which is six free withdrawals and transfers per month

Unit Price

The cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal

Wealth

A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth