Bounced check
a check written for an amount more than in your account
Cashier's Check
A check issued by a bank and sold to you for personal payments to people who won't accept a personal check. It certifies that you have the money available.
credit union
A nonprofit financial institution that is owned by its members and organized for their benefit.
Commercial Bank
a for-profit institution that offers a full range of financial services
Money Order
A form of check payment on which the financial institution prints the exact amount covered. Often used by people who do not have a checking account.
Reconcile
Make your bank records compatible with your bank statements.
safe deposit box
a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less.
Brokerage
a firm that provides you access to the stock markets
U.S. Savings Bond
Obtainable through the U.S. government. Purchased at one-half the face value and will mature to full face value over a specified period of time. FDIC insured, moderate liquidity, moderate rate of return.
3 C's of Credit
Character(credit history), Capacity(ability to repay), Capital(assets)
APR
Annual percentage rate; the annual rate of interest that is charged for using credit
Chapter 7
The chapter of the Bankruptcy Code providing for "liquidation" (i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors).
chapter 11
Section of Bankruptcy law that allows businesses to reorganize, continue functioning and pay creditors equitably according to a court-approved plan
Consumer Credit Counseling Services
a nonprofit organizatioin that provides debt counseling for individuals with serious debt problems
collateral
something of value that a borrower lets the lender claim if a loan is not repaid
FICO score
A credit rating developed by Fair Isaac & Company in the late 1950s, now widely used by lenders and employers. It consists of digit numbers ranging from 300-850.
credit reporting agencies
equifax, transunion, and experian keep a record of consumer's credit transactions
finance charge
is the total dollar amount you pay to use credit.
default
failure to pay back a loan
lien
the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.
payday loans
a loan where a borrower gets a cash advances based on his paycheck
revolving credit
a type of open credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card.
installment credit
a type of closed credit where the loan is repaid with interest in equal periodic payments. Example: car loan, mortgage
truth in lending
Credit legislation that is federal they have to tell you the truth about their lending. Have to tell the whole truth in lending practices.
Repossession
taking away property due to failure to repay the debt
predatory lending
take advantage of ill-informed consumers through excessively high fees
Principal
The money originally invested or loaned, on which basis interest and returns are calculated
Collateralized Loan
A loan that is secured by collateral, properties or assets that are subject to seizure on default.
Barter
exchange goods without involving money
Garnishment
a legal process that allows part of your paycheck to be withheld for payment of a debt
gross pay
the total amount you earn before any deductions are subtracted
net pay
the amount of a paycheck after the deductions are taken out
Inflation
a general increase in prices
FICA
Federal Insurance Contributions Act; tax levied on both employers and employees to pay for Social Security and medicare
Windfall Income
any type of additional income over expenses that is completely unexpected
compound interest
interest earned on both the principal amount and any interest already earned
simple interest
interest paid on the principal alone
rule of 72
A quick way to figure out how long it will take to double your money at a given return rate . Interest rate divided by 72.
time value of money
the principle that a dollar received today is worth more than a dollar received in the future
scarcity
basic economic problem of economics that results from a combination of limited resources and unlimited wants
Deductible
The amount an insured person must pay before the insurance company pays on a claim
Beneficiary
n. person entitled to benefits or proceeds of an insurance policy or will
Cash Value
the amount of money a whole life policyholder would receive if the policy were surrendered before death or maturity
Claim
Formal request for payment, sent to the insurance company, to cover a loss
Death Benefit
The actual amount paid to a beneficiary under a life insurance policy
Disability Insurance
A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.
Homeowners Insurance
coverage that provides protection for your residence and its associated financial risks
Insurance
protection against financial loss
Risk
The possibility of a financial loss
Whole Insurance
a life insurance policy where the premium remains constant and builds a cash value invested by the insurer; a more expensive policy than term.
Term Insurance
Life insurance coverage for a specified period of time, less expensive than whole
Renters Insurance
a type of insurance that covers the loss of a tenant's personal property as a result of damage or theft
Rider
an add-on to an insurance policy
Floater
A policy designed to cover property that floats, or moves, from location to location.
Bull Market
a period of rising stock prices
Bear Market
a stock market with declining stock prices
Bond
an IOU issued by a corporation or government that confirms you are lending the corporation or government money. Bonds pay interest regularly to lenders. At the end of the term of the bond, the borrower returns to the lender the face value of the bond (the
Capital Gain
the profit from the sale of an asset such as stocks, bonds, or real estate.
diversification
spreading out investments to reduce risks
dividend
check paid to stockholders, usually quarterly, representing portion of corporate profits
Dow Jones
The average price of 30 selected industrial stocks, used as a measure of general market trends
liquidity
ease with which an asset can be converted into cash
Mutual Fund
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
NASDAQ
America's largest electronic stock market. Many technology stocks such as Apple, Microsoft and Yahoo are traded on this stock exchange
S & P 500
tracks the prices of 500 different stocks as a measure of overall stock market performance
Securities
all of the investments, including stocks, bonds, mutual funds, options, and commodities, that are traded
Stock
Share of Ownership in a Corporation
Treasury Bill
A government bond that is repaid within three months to a year.
Treasury Note
a government bond that is repaid within two to ten years
Return on Invesment (ROI)
ratio of money gained or earned on an investment
Budget
a plan for making and spending money
Deficit
the amount of money spent is more than the amount of money collected
Emergency Fund
a savings account you can access quickly to pay for unexpected expenses or emergencies, usually equal to 3-6 months of your salary
Fixed Expense
expenses which stay basically the same from month to month, such as housing and transportation.
Opportunity Cost
What you give up when you make one choice over another
Pay Yourself First
A GOLDEN RULE of personal finance. Put a portion of your paycheck into savings/investments before any other spending.
Variable Expense
an expense that changes from month to month
Need
something required or essential: food, shelter, transportation, education
Want
an item that we desire but that is not essential to survival
FDIC Federal Deposit Insurance Corp.
Insures your bank deposits up to $250,000
IRS Internal Revenue Service
Federal Tax Collectors
Federal Reserve Bank
Monetary Policy (how much $ should be in circulation)
Banker's Bank
SEC Securities and Exchange Commission
Makes and Enforces rules for the stock market
US Mint
Make US coins
US Bureau of Engraving and Printing
Make "paper" money
Annual Deductible
yearly fixed amount or percentage of an insurance claim that is the responsibility of the insured, and which the insurance company will deduct from the claim payment
Assigned Risk Pool
consists of people who are unable to obtain automobile insurance due to poor driving or accident records and must obtain coverage at high rates through a state program that requires insurance companies to accept some of them.
Beneficiary
(n) one who benefits from something; a person who is left money or other property in a will or the like
Benefit Period
period of time for which benefits are available.
Claim
an established or recognized right
comparison shopping
comparing products and prices in different stores before making a purchase
co-pay
the amount of money the patient has to pay that the insurance company will not pay
deductible
a clause in an insurance policy that relieves the insurer of responsibility to pay the initial loss up to a stated amount
disability insurance
A form of health insurance that provides periodic payments to replace income when the insured is unable to work as a result of illness, injury, or disease-not as a result of a work-related accident or condition
face value
Amount of principal due at the maturity date of the bond
homeowners insurance
A combination of both property and casualty coverages arising out of the ownership of a home. Coverage includes damage to the home, its contents, additional living expenses, and for the insured's personal liability.
insurance
promise of reimbursement in the case of loss
comprehensive insurance
Damaged by anything other than a collision, insurance pays bill, covers theft, damage caused by fire, explosions, natural disasters, or riots.
insurance benefit
Advantage, privilege, right, or financial reimbursement
insured
a person whose interests are protected by an insurance policy
long-term care insurance
Insurance coverage that provides a daily monetary benefit to people who are chronically ill and who require living assistance either at home or in a residential facility
managed care health insurance
limits participants to seek health care from a specific list of providers
mortgage insurance
Includes insurance against financial loss by reason of the nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument c
no-fault insurance
system under which drivers must have coverage for their own protection. it also limit the damages for which an injured party can sue. under this sustem, after an accident both parties would be covered by their own insurance policies. only some states use
Non-managed care health insurance
allows participants to seek health care from any qualified medical provider
over insured
paying unnecessary premiums for insurance
premium
The periodic amount of money the insured pays to a health plan for a health care policy.
property damage liability insurance
This protects against damage done to other people's cars or property by your car. This does not cover any of your property, including your vehicle.
renter's insurance
a type of insurance that covers the loss of a tenant's personal property as a result of damage or theft.
risk
a venture undertaken without regard to possible loss or injury
term life insurance
Is often described as "pure protection" because it pays benefits only if the insured person dies within the time period (term) covered by the policy. The policy must be renewed if coverage is desired for another time period.
under-insured
A person who technically has health insurance but
whose coverage is not enough to cover his or her
regular medical expenses or whose coverage
would not allow a person to afford adequate care
in the event of a serious disease or illness.
unemployment insurance
program that gives payments to people who have lost their jobs until they find work again
universal variable life insurance
Type of the US life insurance which combines the benefits of an adjustable premium, adjustable coverage term life insurance, and a savings account
whole life insurance
sometimes called straight life insurance or ordinary life insurance; can provide lifetime insurance coverage; in this case, fixed premiums are paid for life; pays interest on the cash value portion with a guaranteed minimum interest rate during life of th