Financial Literacy

Financial Literacy

Using an applying financial

Unsubsidized Loan

A student loan in which borrower is fully responsible for paying the interest

Outstanding Withdrawal

Money that has been taken out of an account but has not been recorded on a bank statement

Outstanding Deposit

Money that has been added to an account but has not been recorded on bank statement

Credit

A contractual agreement to borrow money

Collateral

Property that a borrower promises to give up in case loan is not paid

Credit score

A number used to identify a persons creditworthiness

Dependent

Individual who relies on financial support

Lien

Creditors legal right to collect in case loan is unable to be paid

Principal

Original amount borrowed or invested

Stock

Part of ownership purchased in a business

Premium

Monthly payments for insurance

Deductible

Amount of money that is insured must pay before an insurance company will pay a claim

Amortization

The process by which loan payments are applied to the amount, borrowed as well as the interest on a loan according to a set schedule

Annual Percentage Rate

Used to describe the interest amount charged

Annual Percentage Yield

Used to describe the amount of money in account will receive at the end of the end of each year

Subsidized loan

A student loan in which the government pays the interest that accumulates during specified times

Deferment

A postponement of payment on a loan

Mortgage

Loan to buy real estate, such as land or home

Withholding

Money taken out of any employees check to pay for the employees taxes