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ATM cards
Cards used to access automated teller machines for cash withdrawals and other banking transactions.
Cash advances
Short-term loans taken against a credit card's limit.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision.
net wealth
The total assets owned by an individual minus any liabilities.
retirement planning
The process of determining retirement income goals and the actions necessary to achieve those goals.
forecasting
The process of estimating future trends based on historical data.
financial plan
A comprehensive evaluation of an individual's current and future financial state.
investment assets
Assets that are purchased with the expectation that they will generate income or appreciate in value.
The purple X theory
A specific theory related to financial concepts, details not provided.
stocks
Securities that represent a share of ownership in a company.
net worth
The difference between total assets and total liabilities.
financially irresponsible
Not managing one's finances in a prudent or sensible manner.
Money received
Funds that are acquired through various means such as income, investments, or gifts.
time value of money
The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.
accumulation of money
The process of gradually increasing the amount of money saved or invested over time.
ROTH IRA
A retirement savings account that allows individuals to contribute after-tax income.
Federal Insurance Contributions Act
A U.S. law that mandates a payroll tax to fund Social Security and Medicare.
Gross income
The total income earned before any deductions or taxes.
tax bill
The amount of tax owed to the government.
financial institutions
Organizations that provide financial services such as banks, credit unions, and insurance companies.
commercial banks
Financial institutions that accept deposits and provide loans to individuals and businesses.
certificates of deposit
A savings product offered by banks with a fixed interest rate and maturity date.
risk premium
The additional return expected by investors for taking on additional risk.
savings account
A bank account that earns interest on deposits.
mutual fund
An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks and bonds.
future value
The value of an investment at a specified date in the future, based on an assumed rate of growth.
Income tax
A tax imposed on individuals or entities based on their income.
Student Loan Cancellation and Forgiveness Programs
Programs designed to reduce or eliminate student loan debt under certain conditions.
U.S. bankruptcy code
The federal laws governing bankruptcy proceedings in the United States.
Banks and credit unions
Financial institutions that provide a range of services including deposits, loans, and financial advice.
Homeowner's associations
Organizations in a subdivision or community that enforce rules and regulations for property owners.
Refinancing a home
The process of obtaining a new mortgage to replace the original one, often to secure better terms.
Real estate brokers
Licensed professionals who facilitate the buying and selling of real estate.
tax laws
Regulations governing how taxes are collected and enforced.
U.S. Treasury Department
The government department responsible for managing federal finances.
itemized deductions
Eligible expenses that taxpayers can claim to reduce their taxable income.
financial system
The system that enables the exchange of funds between lenders, investors, and borrowers.
retirement savings
Funds set aside specifically for retirement purposes.
accumulation of interest
The process of earning interest on both the initial principal and the accumulated interest from previous periods.
annuity
A financial product that provides a series of payments made at equal intervals.
tax financial planning
The process of organizing finances to minimize tax liabilities.
tax returns
Forms filed with a tax authority to report income, expenses, and other tax information.
tax breaks
Reductions in tax obligations provided by the government.
yields
The earnings generated and realized on an investment over a particular period.
interest rates
The amount charged by lenders to borrowers for the use of money, expressed as a percentage.
Federal Reserve
The central banking system of the United States, responsible for monetary policy.
50/50 method
A budgeting strategy that allocates 50% of income to needs and 50% to wants.
Certificate of deposit (CD)
A savings account with a fixed interest rate and maturity date, typically offering higher interest than regular savings accounts.
money market deposit account (MMDA)
A type of savings account that typically earns a higher interest rate and may offer limited check-writing capabilities.
Treasury Securities
Debt instruments issued by the U.S. Department of the Treasury to finance government spending.
T-bills
Short-term government securities with maturities of one year or less.
Risk in investments
The potential for losing financial investment or not achieving expected returns.
Credit
The ability to borrow money or access goods or services with the understanding that payment will be made later.
Credit scores
Numerical expressions based on a level analysis of a person's credit files, representing the creditworthiness of an individual.
Credit reports
Detailed reports of an individual's credit history, used by lenders to evaluate creditworthiness.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
Legislation aimed at reforming bankruptcy laws to prevent abuse and protect consumers.
Credit cards
Plastic cards issued by financial institutions that allow consumers to borrow funds to pay for goods and services.
Loan repayment
The process of paying back borrowed money, typically in installments.
annual percentage rate (APR)
The annual rate charged for borrowing or earned through an investment, expressed as a percentage.
Consumer Credit Counseling Service
Organizations that provide advice and assistance to consumers regarding managing their credit and debt.
Fair Credit Billing Act
A federal law that protects consumers from unfair billing practices and provides a mechanism to address billing errors.
Personal loans
Unsecured loans that individuals can use for various personal expenses.
Identity theft
The unauthorized use of someone else's personal information for financial gain.
Longer-term loans
Loans that have a longer repayment period, typically more than five years.
Federal Trade Commission
A government agency that protects consumers and promotes competition in the marketplace.
Homeownership
The state of owning a home rather than renting it.
Selecting a home
The process of choosing a residential property to purchase or rent.
Buying a home
The process of purchasing a residential property.
U.S. households
Residential units that are occupied by people living together.
Capital markets
Financial markets where long-term debt or equity-backed securities are bought and sold.
Liens
Legal claims against assets that are used as collateral for a debt.
Sale of real estate
The transfer of ownership of property from one party to another.
RE growth
The increase in value or profitability of real estate investments.
Renting
The act of paying for the use of property owned by someone else.
Real estate appraisers
Professionals who provide an estimate of the value of real estate properties.
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that may change periodically based on changes in a corresponding financial index.
Fannie Mae and Freddie Mac
Government-sponsored enterprises that provide liquidity to the mortgage market.
The Real Estate Settlement Procedures Act (RESPA)
A federal law that requires disclosure of closing costs to homebuyers.
mortgage loans
Loans specifically used to purchase real estate, secured by the property itself.
salary negotiations
The discussion between an employee and employer regarding the terms of compensation.
