Personal finance

**ATM

Automated Teller Machine

***PIN #

Allows customer access to ATM

***Balance

The amount of money someone has in their account and may spend.

balance

The amount still owed on outstanding debts. (Cars, Homes, etc.)

***Endorse

The act of signing a check in order to deposit or cash it.

***Cleared Check

A check that has successfully gone through the bank's processing system.

***Pending Check

When the process has started but not yet completed. (The money is not yet in the intended account)

***Primary Ways People Are Paid

Direct Deposit, Check

***Bank Statement

A document that details all banking activities for a specific (usually a month) time period.

***Canceled Check

A check that has been processed and paid by the bank.

***Debit

Money that has been taken from one's account.

***Credit

Money that has entered one's account.

***Overdrawn

When more money is spent than exists in one's account.

***FDIC

Federal Deposit Insurance Corporation….Insures the money we have deposited in banks.

***Check Cashing Store

Where people may cash checks. These institutions will charge a fee to the people who use their services.

***PYF

Pay Yourself First

***Check…The Only Options

Deposit or Cash

***Maintenance Fee

Money some banks charge for allowing people to have accounts there.

***Outstanding Check

A check that has been written and signed, but has not yet been cashed or deposited.

***Postdated Check

A check written with a future date on it.

***Payee

A person, or company, to whom money is to be paid.

***Minimum Wage

Positive…..Higher pay.   Possible Negatives…..1.) Fewer hours for workers, 2.) Workers let go, 3.) Higher prices.

***LIFO

Strategy by which the most recently hired workers are the first to be let go if layoffs occur.

***Incentive

Something that motivates someone to do something, like taking a job. Examples would be 1.) Cash bonus, 2.) Moving expenses paid, 3.) Help with living expenses (rent) for a set number of months.

***Structural Unemployment

Unemployment that occurs due to new technology, robots, or machines that come about to make workers' skills obsolete.

***Deficit Spending

When a government spends more money than it has, or takes in.

***Debit Card

Use of a debit card results in money going directly from one's account to the business at which the transaction was completed.

***Credit Card

Use of a credit card results in a 3rd party (banking facility) paying a business for services the card holder used or consumed. It is imperative to pay off one's credit card balance in full each month.

***Wealth

Some's total assets minus their liabilities.

***Finance

The act of borrowing money for something to be paid back over a set period of time.

***A degree that will "pay off"

Will the degree create a job that will easily pay off the loan used to get the degree?

***Deficit

When a state / country spends all its budgeted money before the end of the year.  It creates a budget deficit.

***Two strategies to pay back student loans

1.) Standard / IBR (Income Based Repayment)

***Paused loan payments

Interest still grows during the time of no payments being made.

***Incentives

During labor shortages some companies offer bonus $$, help with moving expenses, help with rent, etc. in order to lure workers to their company.

***Collateral

A valuable asset that a borrower agrees to give up to the bank if they can't pay their loan back.

***Structural Unemployment

When a person loses their job due to modern technology being used to replace them.

***Graduate Students

Students who have already graduated with a BA or BS, and are pursuing a Masters or Doctorate.

***Under Grad Students

A college student who has not yet earned a BA or BS.

***Federal

Pertaining to the U.S. as a whole, and not a specific state.

***Loan Forgiveness

The loan is not technically 'forgiven.' The burden is simply shifted to others (tax payers) to pay.

***Principal & Interest

The parts that make up a loan payment to a bank.  Interest goes to the bank….Principal brings down amount owed on what has been purchased.

***Secured Loan

When an asset is attached to the money borrowed from a bank.

***Unsecured Loan

When money is borrowed and there are no assets attached to it.  Borrowing money for a vacation would be an example. .***Personal Loan

***Surplus

When money is left over after all obligations have been met. The opposite of a deficit.

***Mortgage

The loan someone would get for their home.

***To qualify for a mortgage….

1.) Credit score, 2. Proof of Income, 3.) DTI (Debt To Income Ratio), 4.) Down Payment

***SOF

Source of Funds. (Refers to funds used for down payment)

***Typically mortgages are set up to be paid for

either 15 or 30 years,

***Making an offer for a home….

Decide on an amount one is willing to pay for a house and submit the offer.

***Earnest Money…

Money paid at the time an offer is submitted to show the offer is serious, or sincere.

***Contingency…

Makes the house sale dependent on certain conditions that occur or don't occur.

***Inspection…

Prior to the purchase of a home, a certified inspector will inspect the house to confirm the condition of the house.

***Prorate…

A cost or fee adjusted to cover only the amount of time something is used.

***Closing…

The final step of the mortgage process.

***Escrow…

Part of one's mortgage payment that goes to pay for the homeowner's property tax and home insurance.

***Appraisal…

A neutral, certified professional will determines the value of a home.