Personal Finance Final

Financial Institution

An organization that provides financial services.

Investment Products

Financial instruments for investing money.

Paper Checks

Written orders to pay a specific amount.

ATMs

Automated machines for cash withdrawals.

Direct Deposit

Electronic transfer of funds into an account.

Check Cashing Companies

Businesses that cash checks for a fee.

Checking Account

Account for daily transactions with low interest.

Savings Account

Account for saving money with interest.

Money Market Account

Account offering higher interest with limited transactions.

Certificate of Deposit

Time deposit with fixed interest rate.

Compounding Interest

Interest calculated on initial principal and accumulated interest.

Simple Interest

Interest calculated only on the principal amount.

Minimum Balance

Required amount to avoid account fees.

Bank Reconciliation

Process of matching bank statement with account records.

Transaction History

Record of all transactions in an account.

Account Fees

Charges for maintaining or using a bank account.

ATM Safety

Inspect ATM before use to ensure security.

Withdrawal Limit

Maximum amount that can be withdrawn from an account.

Interest Rate

Percentage earned on savings or investment accounts.

Financial Institution Contact

Reach out for resolving account issues.

Long-term Goals

Financial objectives requiring savings over time.

Bank Statement

Monthly summary of account transactions and balance.

Account Balance

Current amount of money in a bank account.

Investing

Allocating money to generate profit over time.

Short-term financial goals

Objectives requiring funds within a year.

Stock

A share representing ownership in a company.

Bond

A type of debt investment with fixed interest.

Mutual fund

A pooled investment in various securities.

Net pay

Take-home pay after taxes and deductions.

Gross pay

Total earnings before any deductions.

W-4 form

Determines tax withholding from paychecks.

W-2 form

Reports annual earnings and tax withholdings.

FICA

Federal Insurance Contributions Act tax for Social Security.

Lifetime earnings

Total income earned over a person's career.

Emergency fund

Savings for unexpected expenses.

Education and earnings correlation

Higher education typically leads to higher income.

Tax deduction

An expense that reduces taxable income.

Retirement savings contributions

Funds set aside for retirement, often tax-deferred.

Federal income tax

Tax levied by the federal government on income.

Overtime pay

Additional pay for hours worked beyond standard hours.

Licensure or certification

Official recognition of qualifications in a profession.

Interest rates

Percentage charged on borrowed money or earned on savings.

Investment risk

Potential for loss in investment value.

Tax return

Annual report of income and taxes owed.

Paycheck deductions

Amounts subtracted from gross pay for taxes and benefits.

Government Funding

Financed through taxes for public services.

Gig Economy

Flexible market for short-term independent jobs.

1040 Form

Tax form requiring income and expense records.

Benefits Package

Employee perks including healthcare and retirement contributions.

Budgeting Benefits

Helps track money and reach financial goals.

Financial Goals

Objectives for saving or spending money.

Current Expenses

Recent spending tracked via bank statements.

Recurring Expenses

Regular payments that occur consistently.

Needs vs Wants

Essential expenses versus discretionary spending.

Savings Consideration

Planning for future financial security.

Employee Benefits

Compensation beyond salary, like insurance.

Job Offer Evaluation

Assessing pay and benefits before acceptance.

Charitable Donations

Contributions to non-profit organizations.

Labor Market

Overall employment availability in the economy.

Non-Profit Funding

Financial support from donations and grants.

Paid Time Off

Compensated leave from work for various reasons.

Disability Insurance

Coverage for income loss due to disability.

Matching Contributions

Employer contributions to employee retirement plans.

Technology Equipment Benefits

Provision of devices for work by employers.

Income Records

Documentation of all earnings for tax purposes.

Financial Tracking

Monitoring income and expenses for budgeting.

Envelope Method

Cash budgeting technique using envelopes for categories.

Spreadsheet Budget

Digital tool for tracking income and expenses.

Unexpected Expenses

Unforeseen costs impacting financial stability.

Budgeting Tips

Strategies to maintain financial discipline and control.

Consumer Reviews

Feedback from users assessing product quality and value.

Influencer Marketing

Promotion by individuals with large social media followings.

Unit Price

Cost per single item to compare value effectively.

Leasing vs Buying

Choosing temporary use over ownership of property.

Financial Planning

Creating a strategy for managing income and expenses.

Spending Tracker

Tool to monitor and categorize expenditures.

Budget Buffer

Extra funds allocated to cover unexpected costs.

Consumer Skills

Knowledge for making informed purchasing decisions.

Price Comparison

Evaluating costs of similar products before purchase.

Social Media Influence

Impact of online personalities on consumer choices.

Buying in Bulk

Purchasing larger quantities for cost savings.

Financial Literacy

Understanding financial concepts for better decision-making.

Budget Categories

Different sections in a budget for organized tracking.

Overspending Activities

Actions leading to exceeding budget limits.

Total Price

Overall cost for multiple items purchased.

Payment Options

Different methods to pay for purchases.

Cash

Physical currency used for transactions.

Check

Written order to a bank to pay money.

Debit Card

Card linked directly to a bank account.

Credit Card

Card allowing borrowing up to a limit.

Scam Red Flags

Warning signs indicating a potential fraud.

Leasing

Renting an asset for a specified time.

Buying

Owning an asset outright after payment.

Maintenance Responsibility

Obligation to care for owned property.

Down Payment

Initial payment made when purchasing an asset.

Fraud Protection

Security measures against unauthorized transactions.

Annual Percentage Rate (APR)

Yearly interest rate for borrowed money.

Loan

Borrowed money to be paid back later.

Consumer Ratings

Feedback indicating product satisfaction levels.

Add-ons

Additional features or services offered with a purchase.