General Financial Literacy Course - Utah, Financial Literacy State Test

401K

A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.

403 (b)

A U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.

529 Plans

The Utah Educational Savings Plan (UESP) is a nonprofit 529 college savings plan. 529 plans are tax-advantaged savings vehicles designed to encourage individuals to begin to save for the future costs of higher education. You do not have to be a Utah resident to save with UESP.

Advertising

To call public attention to, especially by pointing out desirable qualities so as to create a desire to buy or do business with.

amortization table/schedule

A schedule of payments showing the amounts of principal and interest that make up each payment.

Annual Percentage Rate (APR)

The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Bank

A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common).

Beneficiary

A person who benefits or is expected to benefit from something; the person who receives the insurance money when policy funds are dispersed.

Benefits

Include various types of non-wage compensation provided to employees in addition to their normal wages or salaries.[1] In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples include housing (employer provided or employer paid), group insurance (health, dental, life), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid) social security, profit sharing, funding of education and other specialized benefits. The purpose of employee benefits is to increase the economic security of staff and members, and doing so, improve worker retention across the organization.

Budget

A financial plan used to forecast and track income and expenses.

Career

Profession or field of employment for which one trains, such as financial services or medicine.

Certificate of Deposit (CD)

A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate, and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.

Charitable Contributions

In general, [money given to] a charitable organization that exists to benefit society as a whole rather than to enrich individual owners or shareholders.

Chex-Systems

The Chex Systems, Inc. network is comprised of member financial institutions that regularly contribute information on closed checking and savings accounts. ChexSystems shares this information among its member institutions to help them assess the risk of opening new accounts.

Closing Costs

Closing costs are fees paid at the closing of a real estate transaction. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are incurred by either the buyer or the seller.

Co-signers

The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain financing.

Collateral

Security pledged for the payment of a loan: He gave the bank some stocks and bonds as collateral for the money he borrowed.

Commisions

A service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security.

Comparison Shopping

Examining different brands or models of a product (to learn about variations in quality, size, etc.), or the prices charged by different sellers (to learn about possible cost-savings), before deciding what to buy.

Compound Interest

Interest paid or to be paid both on the principal and on accumulated unpaid interest.

Direct Deposit and Direct Debit

Being paid or paying electronically via ACH.

Remote Check Deposit

Imaging and depositing a check using a smartphone. on-line bill pay.

Mobile Payments

Through Apple Pay, Softcard, Google Wallet.

Consumer to Consumer (C2C)

Payments through services such as PayPal, Popmoney, Square Cash.

Reloadable Prepaid Debit Cards

Such as Green Dot and American Express Serve.

Truth in Lending Act

Consumer Protection Laws -a regulation by the federal government that requires uniform methods for computing the cost of credit and disclosing credit terms.

Fair Debt Collection Practices Act

Consumer Protection Laws - Federal law that limits the behavior and actions of debt collectors who are attempting to collect the debt for another person or entity.

Fair Credit Reporting

Consumer Protection Laws - a United States federal law (codified at Title 15 United States Code Section 1681 and following) that regulates the collection, dissemination, and use of consumer information, including consumer credit

Equal Credit Opportunity Act

Consumer Protection Laws - a United States law (codified at 15 U.S.C. § 1691 et seq.), enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status or age.

Home Mortgage Disclosure Act

Consumer Protection Laws - (or HMDA, pronounced HUM-duh) is a United States federal law that requires certain financial institutions to provide mortgage data to the public. Congress enacted HMDA in 1975.

Right to Financial Privacy Act

Consumer Protection Laws - a United States federal law, Title XI of the Financial Institutions Regulatory and Interest Rate Control Act of 1978, that gives the customers of financial institutions the right to some level of privacy from government searches.

Regulation D

Consumer Protection Laws - contains the rules providing exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the securities with the SEC.

Truth in Savings Act

Consumer Protection Laws - The act was implemented under Federal Regulation. The Truth in Savings Act was designed to help promote competition between depository institutions and make it easier for consumers to compare interest rates, fees and terms associated with savings institutions' deposit accounts.

Electronic Funds Transfer Act / Regulation E

Consumer Protection Laws - A federal law that protects consumers engaged in the transfer of funds through electronic methods. This includes the use of debit cards, automated teller machines and automatic withdrawals from a bank account. The act also provides a means of correcting transaction errors and limits the liability from any loses due to a lost or stolen card.

Community Reinvestment Act

Consumer Protection Laws - is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations.

Credit

The providing of money or goods with the expectation of payment in the future. Trust given to a customer for future payment for goods purchase.

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.

Credit Abuse

Late Fees -Missed Payments -Collection Notices -Bounced Checks .

Credit Card Bureaus

Company that collects information about your credit history and sells it to lenders. (Equifax (www.equifax.com), Trans Union (www.transunion.com), Experian (www.experian.com)

Credit Report

A record of your credit history that includes information about your identity, existing credit, public record, and inquiries about you.

Credit Union

Member-owned financial cooperative. These institutions are crated and operated by its members and profits are shared amongst the owners.

Creditworthiness

Trustworthiness with money based on prior history; a general qualification for borrowing, including character, capacity, capital, collateral and conditions.

Deductible

The amount of money an insured person pays before the insurance company makes payments for loss.

Default Rates

1. The rate of borrowers who fail to remain current on their loans. It is a critical piece of information used by lenders to determine their risk exposure and economists to evaluate the health of the overall economy. 2. The interest rate charged to a borrower when payments on a revolving line of credit are overdue.

Deflation

A sustained decrease in the average price level of all the goods and services produced in the economy.

Delayed Gratification

Refers to the ability to put off something mildly fun or pleasurable now in order to wait for something that is greatly fun, pleasurable, or rewarding later. For example, you could watch TV the night before an exam, or you could exhibit delayed gratification and study for the exam.

Derogatory Remarks

a long-lasting negative record on your credit report. These marks will likely hurt your ability to qualify for credit or obtain desirable rates and typically take seven to ten years to clear from your credit report.

Diversification

A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

Dividend Reinvestment

A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly dividends directly as cash; instead, the investor's dividends are directly reinvested in the underlying equity.

Economics

The social science study of how people use their limited resources in satisfaction of their limitless wants.

Emergency Fund

An account that is used to set aside funds to be used in an emergency such as loss of a job, an illness, or a major expense.

W-4

Employment Forms -Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay.

W-2

Employment Forms - Employers must file a Form W-2 for each employee from whom Income, social security, or Medicare tax was withheld.

I-9

Employment Forms - An employee must show documentation to his/her employer to show their identity and authorization to work. The following Web pages will teach you about the kinds of documents that employers may accept from employees to complete Form I-9.

Entrepreneurship

The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural resources, and capital can produce profit. Entrepreneurial spirit spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.

Expansion

One of two basic business cycle phases. The other is contraction. The transition from expansion to contraction is termed a peak and the changeover from contraction to expansion is a trough. It is a period when business activity surges and gross domestic product expands until it reaches a peak.

Expense

Money spent for goods and services.

FAFSA

(Free Application for Federal Student Aid): FAFSA forms become available in December of the senior year. All students applying for any federal financial aid must file this form as soon as possible after January 1. Analysis of the data on this form will determine eligibility for Pell Grants; Supplemental Educational Opportunity Grants (SEOG); Stafford Loans (subsidized and non-subsidized); Perkins Loans; work-study; and other federal and, in some cases, state programs.

FAFS4Caster

Will help you understand your options for college. Provide some basic information and we'll estimate your eligibility for federal student aid. Your estimate will be shown in the "College Cost Worksheet" where you can also provide estimated amounts of other student aid and savings that can go towards your college education.

Federal Deposit Insurance Corporation (FDIC)

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Banking Act of 1933. As of August 2014, it provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank. As of August 27, 2014, the FDIC insured deposits at 6,638 institutions.

Federal Reserve

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.[3][8] Events such as the Great Depression in the 1930s were major factors leading to changes in the system.

Finance

A subset of Economics. The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities.

Finance Charge

A finance charge is often an aggregated cost, including the cost of the carrying the debt itself along with any related transaction fees, account maintenance fees or late fees charged by the lender.

Financial Goal, Short-term Financial Goals, Long-term Financial Goals

There are short-term goals and long-term goals and some goals that fall in between. The distinction between the categories is usually related to the amount of time it takes to accomplish the goal and the financial commitment to achieve them. Short-term goals are achievable in the more immediate future and intermediate goals take slightly longer and more of a financial commitment. Long-term goals usually take more than five years to accomplish and require a disciplined saving and investing strategy over a long time period. The most important long-term financial goal for everyone is to save for retirement. For most people, this is the first priority over saving for any other goal.

Fixed Expense

A cost of goods or services that is paid regularly.

For Profit Post-Secondary Education

For-profit education in the United States (known as for-profit college or proprietary education in some instances) refers to higher education educational institutions operated by private, profit-seeking

Grace Period

A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.

Identity Fraud

Refers to crime in which criminal obtains and uses a victim's personal data through fraud or deception and usually for economic gain.

Identity Theft

The crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person's name or identity in order to make transactions or purchases.

Income

Money earned from a job or other sources.

Income/Revenues

Money, or other funds, taken in. Money received; money gained from labor (work), business, or property.

Inflation

A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).

Inheritance

Is something passed down from your parents to you, or the act of receiving something passed down from your parents. When your parents leave you their home in their will, this is an example of your inheritance.

Installment Loan

A loan that is repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example, is a type of installment loan.

Insurance

A contract by which someone guarantees for a fee to pay someone else for the value of property if it is lost or damaged (as through theft or fire) or to pay usually a specified amount for injury or death.

Insurance Companies

A company that offers insurance policies to the public, either by selling directly to an individual or through another source such as an employer's benefits plan An insurance company can specialize in one type of insurance, such as life insurance, health insurance or auto insurance, or offer multiple types of insurance.

Home Owner/Renter

Insurance Types -A form of insurance that protects the insured property against loss from theft, liability and most common disasters.

Automobile

Insurance Types - Insurance purchased for cars, trucks, and other road vehicles. Its primary use is to provide protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.

Health

Insurance Types - Insurance against loss due to ill health.

Whole/Term Life

Insurance Types -Insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured.

Long-Term Disability

Insurance Types -A disability insurance designed to offer income payments for long-term injuries, illnesses or disabilities. Long- term if often considered over 90 days.

Interest

The cost of money that is borrowed, which is usually a percentage of the borrowed amount.

Interest Charged

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Interest Earned

The profit on money that is invested, which is usually a percentage of the invested amount.

Investment

Money put aside for profit: A financial holding that is purchased with the expectation of increased value; investments can be secured or unsecured, and the expected value of return on one's investment is usually dependent on the degree of risk involved.

Investment or Brokerage Firm

A business whose main responsibility is to be an intermediary that puts buyers and sellers together in oder to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.

Investor Behavior

In 2001 Dalbar, a financial-services research firm, released a study entitled "Quantitative Analysis of Investor Behavior", which concluded that average investors fail to achieve market-index returns.

IRA

An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement. There are two types of IRAs, traditional and Roth, each with its own qualifications and rules governing contributions and withdrawals.

Job

Position of employment with specific duties and compensation.

Late Fee

A charge a consumer pays for making a required minimum payment on a credit card after the due date. Late fees encourage consumers to pay on time and are typically $25 for the first late payment and $35 for subsequent late payments.

Law of Supply and Demand

An economic force. The theory explaining the interaction between the supply of a resource and the demand for that resource.

Lifetime Limit

Lifetime maximum or lifetime limits refers to the maximum dollar amount that a health insurance company agrees to pay on behalf of a member for covered services during the course of his or her lifetime.

Limits of Coverage

The largest total amount the insurance company will pay for covered losses. Many policies have multiple limits - a certain amount per person, another amount per accident, and sometimes an aggregate limit on all losses paid during the policy term.

Loan Agencies

Also known as a "captive finance company" a subsidiary whose purpose is to provide financing to customers buying the parent company's product. Captive finance companies can range in size from mid-size entities to giant firms, depending on the size of the parent company.

Long-Term Investment

An account on the asset side of a company's balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate and cash. The long term investment account differs largely from the short-term investment account in that the short-term investment will most likely be sold, whereas, the long term investment may never be sold.

National Credit Union Administration (NCUA)

The National Credit Union Administration (NCUA) is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of more than 98 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

Non Sufficient Fund (NSF) Handling

NSF An acronym used in the banking industry to signify that there are "non-sufficient funds" in an account in order to honor a check drawn on that account. Colloquially, this is known as a "bounced check" or "bad check". Also the fees associated with NSF.

Non-Profit Post-Secondary Institution

Non-profit [schools] offer a learning environment designed first and foremost to benefit the students' interests, helping them achieve their college degrees and achieve career success. For profits (sometimes called "proprietary schools") are in business to make money for their owners and shareholders by offering a service, in this case, education.

Occupation

The name for a unique set of tasks, skills and abilities that a worker performs.