Personal Finance Unit Review

Check

A document that orders a bank to pay a specific amount of money from one account to another.

Bank

Refers to banking services that help individuals manage money, including saving, borrowing and budgeting credit, and investing.

Credit Union

managing money through credit union services ; savings account with a higher interest rate and potential withdrawal restrictions

Demand Deposit

A type of bank account that allows withdrawals and deposits without advance notice, typically used for daily transactions.

Overdraft

when you spend more money than what is available in your bank account, resulting in a negative balance and potential fees.

Check float

the time between writing a check and when the money is drawn from an account

checkbook register

a tool for recording all deposits and withdrawals from a checking account to track balance

joint account

shared by two or more people

money market account

high-interest bank account with limited access and higher balance requirements.

savings account

an account held at bank or other financial institution that limts the amount of money a person can withdraw but also pays interest

Certificate of deposit (CD)

a contract between a person and the bank that specifies the length of time that the person will leave a certain amount of money deposited and interest rate earned

certified check

a check guaranteed by the bank that verifies the signature and ensures funds are available.

Debit Card

a payment card that allows you to access funds directly from your bank account for purchases or withdrawals

Overdraft protection

prevents transactions from being declined when you do not have enough funds in your account

safe deposit box

A securely locked container in a bank where you store valuable items

notary public

is an official authorized to witness and authenticate signatures on legal documents, ensuring their validity

ATM fees

are charges applied when you use an Automated Teller Machine that is not operated by your bank or credit union

Stop-payment order

request to a bank to cancel a check or a payment before it is processed

IRA (Traditional)

a individual retirement account that allows you to contribute pre-tax income, with taxes deferred until withdrawal during retirement

IRA (Roth)

an individual retirement account where contributions are made with after-tax money, but withdrawals in retirement are tax-free