personal finance

Budget

A plan that shows how you will manage your income, spending, and saving

Income

Money earned or received from work, investments, or other sources

Expense

Money spent to pay for goods and services

Fixed expense

An expense that generally stays the same each month, such as rent

Variable expense

An expense that can change from month to month, such as groceries or entertainment

Needs

Things you must have to meet basic needs and responsibilities

Wants

Things you would like to have but can live without

Savings

Money set aside for future use

Emergency fund

Money saved to help pay for unexpected expenses

Checking account

A bank account used for everyday spending and payments

Savings account

A bank account used primarily for saving money

Deposit

Money placed into a bank account

Withdraw

Money taken out of a bank account

Debit card

A card that allows you to spend directly from your bank account

Credit card

A card that allows you to borrow money and pay it back later

Interest

Money earned on savings or charged for borrowing money

Principal

The original amount of money borrowed or invested

Balance

The amount of money currently in an account or owed on a debt

Overdraft

Spending more money from a bank account than the available balance

Fee

A charge for a financial service

ATM

A machine used to withdraw cash and perform certain banking transactions

Pin

A secret number used to help protect access to a bank card or account

Direct deposit

A paycheck or other payment deposited electronically into a bank account

electric funds transfer

The electronic movement of money from one account to another

Bank statement

A record of deposits, withdrawals, purchases, and other activity in a bank account

Reconciliation

Comparing your own financial records with your bank statement to make sure they match

Compound interest

Interest earned on both the original amount and previously earned interest

Simple interest

Interest calculated only on the original amount of money

loan

Money borrowed that must be repaid, Usually with interest

Borrower

A person or organization that receives borrowed money an agrees to repay it

Lender

A person or institution that provides money to someone who borrows it

APR

The yearly cost of borrowing money expressed as a percentage

Credit score

A number that represents how likely someone is to repay borrowed money

Credit history

A record of a person‘s history of borrowing and repaying money

Identity theft

The unauthorized use of someone’s personal information

Fraud

Deception used to gain money or another financial benefit

Account number

A unique number used to identify a bank account

Routing number

A number you say, identify a financial institution for certain electronic transactions

Transaction

An activity Involving money, such as a purchase, deposit, or withdrawal

Paycheck

Payment received from an employer for work performed

Gross pay

The total amount earned before taxes and other deductions

Net pay

The amount of money recieved after taxes and other deductions are removed

Withholding

Money taken from a paycheck for taxes and other purposes

Financial goal

A specific money related objective you want to accomplish

Budget surplus

The amount left over when income is greater than expenses

A situation in which expenses are greater than income

Budget deficit

Opportunity cost

The value of the next best choice you give up when making a decision

Cash flow

The movement of money coming into and going out of your finances

automatic payment

A payment that is scheduled to be taken from an account automatically

Minimum payment

The smallest amount of credit card company requires you to pay by the due date