Personal Finance 2nd Semester Exam Review 2026 (All Checking Accts, Credit, Consumer Skills)

Service Charge

A fee for handling a checking account

Debit Card

A bank-issued card that takes money out of your checking account when using it for payment

Regular Checking Account

A checking account that typically has a minimum balance and a service charge

Free Checking Account

A checking account that typically features no minimum balance and no service charge

Share Draft

A checking account held at a credit union

Blank Endorsement

An endorsement consisting only of the signature

Restrictive Endorsement

An endorsement that limits the use of the check to deposit

Special Endorsement

An endorsement that transfers the check to someone else

Endorsement

Written evidence that you received payment or transferred your right to receive payment to someone else

Joint Account

A checking account held by two or more people

Individual Account

A checking account held by one single owner

Payee

The person to whom the check is written

Drawer

The owner of the checking account and the person who signs the checks

Drawee

The bank or financial institution where the checking account is held

non-sufficient funds

The situation of not having enough money in your checking account to cover a payment that was made (check written, debit card, automatic payment, etc.)

check register

A separate form on which the checking account owner keeps a record of all deposits and withdrawals from the account

check stub

A form attached to a check on which the checking account owner keeps a record of all deposits and withdrawals from the account

postdated check

A check dated later than the date on which it was written

bank statement

A monthly report sent by the bank on the status of your account and all activity within the account.

bank reconciliation

A statement showing how two balances were brought into agreement

outstanding checks

Checks that have been written, but have NOT been paid out of your account by your bank yet

outstanding deposits

Deposits that have been made, but have NOT been added to your account yet by the bank

overdraft fee

Fee charged when a transaction for payment is allowed to go through, even though there is not enough money in account to cover it.

return fee

Fee charged when you do not have enough money in your account to cover a payment, and the payment goes unpaid.

signature card

Document used by bank to prove signature of account holder - shows all authorized check signers

deposit slip

Bank form that should accompany each deposit into a bank account, and lists cash and checks to be deposited

cleared checks

Checks that have been paid by your bank, and deducted from your account

cleared deposits

Deposits made that the bank has added to your account during the month

cleared EFT payments

Debit card and online payments that the bank has deducted from your account during the month

Convenience

Advantage of a checking account that makes it easy to make payments in a variety of ways.

Safety

Advantage of a checking account that is characterized by your money in the account being insured by the FDIC

Proof of Payment

Advantage of a checking account - bank statement shows payments that have been paid out of your account

Record of Finances

Advantage of a checking account - you can use your check register to keep a record of all acct activity and can track spending for budgeting purposes

outstanding check

Checks that have NOT been paid by your bank yet

outstanding deposit

Deposits that have NOT been added to your account yet by the bank

cancelled check

Checks that have been paid by your bank, and deducted from your account

Credit

The privilege of using someone else's money for a period of time

Debtor

Anyone who buys on credit or receives a loan

Creditor

One who sells on credit or makes the loan.

Loan Credit

Borrow a specific amount of money for a specific purpose.

Sales Credit

Charging a purchase at the time you buy the good or service.

Closed-Ended Credit

One time loan for specific dollar amount, for specific time period, and with specified payment amounts

Down Payment

When receiving a loan, the payment of part of the purchase price up front.

Open-Ended Credit

Line of credit that requires periodic payments of part or all of the total, and lets you borrow UP TO a certain amount EACH MONTH.

Closed-Ended Credit

Loans are an example (Closed-Ended OR Open-Ended?)

Open-Ended Credit

Credit Cards are an example (Closed-Ended OR Open-Ended?)

Single-Purpose Card

Credit card that can only be used to buy goods/services at the business that issued the card.

Multipurpose Card

Credit card that can be used at many different stores and businesses for many reasons.

APR

Interest rate charged on credit card balances and dollar amounts borrowed as loans

Annual Fee

Flat fee charged each year to use your credit card

Late Fee

Amount charged by the credit card company for not paying your payment by the due date.

Finance Charges

Total dollar cost of credit, including interest and all other charges.

Grace Period

Amount of time given to pay off credit card debt without having to pay interest.

Credit Limit

The maximum amount of money that can be charged to a credit card.

Minimum Payment

The smallest amount of payment required on your credit card bill each month.

Credit References

Individuals or businesses who can help verify your credit record

Character

Honesty and willingness to pay debt when it is due

Capacity

Ability to pay debt when it is due

Capital

Value of borrower's possessions

Capacity

Which of the 3 C's? How much income do make per month?

Capital

Which of the 3 C's? What is the balance of your Savings Account?

Capacity

Which of the 3 C's? What other loans do you have right now, and what are your credit card balances currently?

Character

Which of the 3 C's? What do your credit references say about you?

Character

Which of the 3 C's? Do you have a history of paying back your debts on time (based on your credit rating)?

Credit History

A profile of a person's debt and repayment habits.

Utilization Rate

The amount of your credit limit that is currently being used. (Calculated by dividing the credit card balance by the credit limit.)

Credit Score

A calculated number that measures how likely you are to pay back a loan on time.

Credit Report

A statement that contains information about your credit activity and current situation

Term

The number of years that you have to pay off a loan (in closed-ended credit).

Principal

The dollar amount of the loan (in closed-ended credit).

Co-signer

Someone who becomes responsible for payment of a loan if you do not pay as promised.

Credit worthiness

The likelihood of whether or not a person will pay their loan back as promised

Lease (Vehicle Lease)

An agreement where a consumer makes monthly payments to use a car for a certain length of time instead of purchasing the car.

Financing a New Car

To buy the car with an auto loan (credit), and pay it back over time with interest.

Mileage Requirements

The maximum amount of miles that you can drive a leased vehicle before you are charged extra fees.

Down Payment

A portion of the total cost of an item, such as a car or house, that must be paid at the time of purchase, and will be deducted from the amount of the loan.

Unit Cost

The cost for one item in a set that allows it to be easily compared to other similar products to help evaluate the best deal.

Consumer

A person who purchases goods and services

Rent

The cost paid for the use of someone else’s property

Landlord

Person who owns a property and chooses to allow other to live there in exchange for paying rent.

Tenant

A person who rents and lives in a property owned by someone else (pays rent to live on the property)

Security Deposit

Money paid upfront to a landlord to cover cleaning costs and potential damages by a tenant.

Amenities

Features or services provided in a property (apartment complex) that enhance living experiences and comfort.