Unit 1: Saving Vocab Y6S1

Withdrawal

Taking money out of your account

Deposit

Money you put into your account

Checking Account

Store and easy access of money to allow you to manage day-to-day expenses and spending

savings account

designed to hold money for long periods of time and these accounts accrue interest

interest

a percentage of money that is paid or earned over time. It can be paid for borrowing money, or earned for saving money.

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

Emergency Fund

Money set aside for unanticipated expenses or loss of income

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

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

Online Savings Account

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

Money Market Account (MMA)

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

Certificate of Deposit (CD)

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

Credit card

A plastic card that allows you to make purchases now with borrowed money, which then you must repay to the lender in one lump sum or in monthly payments with interest.

impulse buying

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

Inflation

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