Professional Documents
Culture Documents
This
document
lists
all
the
glossary
terms
&
definitions
found
in
the
EverFi
Financial
Literacy
online
course.
Students
can
also
print
and
access
these
terms
in-course
by
clicking
on
the
Glossary
icon
on
the
left-hand
menu
bar.
#
1040
A
tax
form
filled
out
by
an
individual
and
filed
with
the
IRS
that
determines
the
amount
of
income
tax
owed
in
a
single
year.
1040EZ
A
tax
form,
similar
to
the
1040,
filled
out
by
an
individual
and
filed
with
the
IRS.
The
form
is
used
to
determine
the
amount
of
income
tax
owed
to
the
IRS
in
a
single
year.
The
1040EZ
form
is
used
in
simpler
tax
situations.
401(k)
A
retirement
account
offered
through
an
employer,
where
an
employee
can
contribute
money
from
his
or
her
paycheck
before
or
after
taxes.
403(b)
A
retirement
account
similar
to
a
401(k)
plan,
but
offered
by
non-profit
organizations,
like
universities
or
charitable
organizations.
529
College
Savings
Plan
A
savings
plan
offering
tax
benefits
that
can
be
used
for
any
qualified
educational
expenses.
A
Asset
Property
owned
by
an
individual
or
organization
that
has
some
value.
Can
refer
to
physical
items
(like
a
house
or
car)
or
to
intangible
items
(like
a
stock
or
bond).
Associates
degree
A
degree
granted
after
two
years
of
study,
often
by
a
community
or
junior
college.
ATM
Card
A
payment
type
similar
to
a
debit
card
that
allows
you
to
make
electronic
purchases
but
requires
that
you
enter
a
PIN
(Personal
Identification
Number)
for
any
transaction.
ATM
An
abbreviation
that
stands
for
Automatic
Teller
Machine.
An
ATM
is
a
machine
that
allows
you
to
make
electronic
deposits
and
withdrawals
from
your
bank
accounts.
Account
Number
Each
bank
account
has
a
unique
account
number.
The
account
number
can
be
found
at
the
bottom
of
a
check
the
second
range
of
numbers
in
the
series
of
numbers
at
the
bottom
of
a
check
that
tells
the
bank
cashing
the
check
which
account
to
pull
the
money
from.
Annual
Percentage
Rate
(APR)
Another
name
for
the
interest
rate
charged
on
the
balance
of
a
credit
card.
Appreciating
Assets
An
appreciating
asset
is
something
you
own
that
increases
in
value
over
time.
If
you
buy
an
appreciating
asset
and
then
sell
it
later
on,
it
will
be
worth
more
money
than
you
originally
paid
for
it.
Auto
insurance
A
type
of
insurance
that
protects
a
policyholder
in
the
case
of
a
car
accident.
Most
states
require
it
by
law.
B
Bachelors
degree
A
degree
awarded
by
a
college
or
university
for
completing
undergraduate
studies.
Balance
The
total
amount
of
money
in
a
banking
account
at
any
given
time.
Balance
Transfer
A
transfer
of
your
existing
credit
card
balance
to
another
credit
card.
Balance
transfers
are
typically
used
when
a
consumer
wants
to
transfer
their
credit
card
debt
onto
a
card
with
a
lower
interest
rate.
Bank
Teller
A
bank
employee
who
helps
with
account
transactions
like
depositing
or
withdrawing
money.
Bonds
A
bond
is
basically
a
loan,
except
that
in
this
case,
you're
the
lender.
When
you
buy
a
bond,
you
loan
an
amount
of
money
to
the
organization
issuing
the
bond
at
a
certain
interest
rate
for
a
certain
period
of
time.
You
are
paid
interest
from
this
loan
at
regular
periods,
and
then,
when
the
bond
matures,
you
get
back
your
initial
investment
plus
any
additional
interest.
Treasury
and
municipal
bonds
are
specific
types
of
bonds.
Branch
Manager
Manages
all
the
personnel
at
a
specific
bank
location
or
branch.
Brokerage
Account
A
brokerage
account
is
an
account
you
open
with
a
stockbroker
in
order
to
trade
stock
on
a
stock
exchange.
The
broker
uses
the
money
in
the
account
to
buy
and
sell
stock
on
your
behalf
when
you
decide
you
would
like
to
make
a
trade.
Some
types
of
brokerage
accounts
allow
the
broker
to
make
trades
on
his/her
own
without
your
direct
approval.
Budget
A
budget
is
a
plan
of
how
you
will
spend
the
money
that
you
make
or
receive.
C
Capital
Gain
Capital
gain
is
the
amount
of
money
you
gain
from
an
investment
(hence
the
name).
Basically,
it
describes
how
much
more
money
your
investment
is
worth
compared
to
the
price
you
paid
for
it.
Capital
Gains
Tax
The
Capital
Gains
tax
is
a
tax
charged
on
the
profits
made
on
the
sale
of
something
that
was
purchased
at
a
lower
price.
People
usually
make
capital
gains
from
the
sale
of
stocks,
bonds,
and
property.
Cash
Advance
A
loan
of
cash
you
obtain
with
a
credit
card.
Cashiers
Check
A
payment
type
that
is
paid
for
upfront
and
guaranteed
by
the
bank
not
to
bounce.
Certificate
of
Deposit
A
type
of
savings
vehicle
in
which
you
put
your
money
away
for
a
certain
amount
of
time,
called
a
term,
to
allow
your
principal
to
earn
interest.
Charge
Card
A
payment
type
that
works
just
like
credit
cards
except
the
balance
must
be
paid
in
full
every
month.
Check
Card
Another
name
for
a
Debit
Card.
Check
Number
A
number
identifies
each
personal
check,
found
at
the
top
right
of
a
personal
check
that
identifies
that
specific
check.
Checking
Account
A
type
of
bank
account
in
which
interest
is
not
usually
applied
to
the
principal,
but
offers
a
safe
place
to
store
your
money
with
high
liquidity
and
allows
you
to
make
withdrawals
using
an
ATM
card,
debit
card,
or
personal
check.
Claim
A
claim
is
the
request
you
make
to
your
insurance
company
for
payment
of
the
benefits
allowed
by
your
coverage.
For
instance,
if
you
receive
a
bill
for
repairs
made
to
your
car,
you
might
submit
a
claim
to
your
auto
insurance
company
to
request
they
pay
the
bill
for
you.
Commercial
Banks
Commercial
banks
deal
primarily
with
deposits
and
loans
from
corporations
or
large
businesses.
Compound
Interest
Compound
interest
is
interest
that's
generated
not
only
from
the
money
you
put
into
an
account,
but
also
from
the
interest
you
make
on
that
money.
In
other
words,
with
compound
interest,
you
earn
interest
on
your
interest.
Compounding
Frequency
The
number
of
compounding
periods
in
one
year.
The
greater
the
compounding
frequency,
the
more
often
your
interest
is
calculated
and
added
back
into
your
account.
Consolidation
Loans
These
combine
several
student
loans
into
one
bigger
loan
from
a
single
lender,
which
is
then
used
to
pay
off
the
balances
on
the
other
loans.
Consumer
Financial
Protection
Bureau
(CFPB)
A
U.S.
government
agency
that
helps
protect
consumers
by
regulating
financial
products
and
services,
like
mortgages,
credit
cards,
and
student
loans.
Consumer
Fraud
When
a
product
or
service
is
illegally
used
to
deceive
you
into
sending
money
or
signing
up
with
a
phony
service.
Consumer
fraud
scams
frequently
start
with
a
fake
email,
letter
or
phone
call.
Co-pay
A
fixed
fee
that
an
individual
pays
for
specific
medical
services,
like
a
visit
to
the
doctors
office.
Coverage
Your
coverage
refers
to
the
range
of
protection
you
are
eligible
to
receive
from
an
insurance
plan.
Insurance
plans
can
have
different
coverage
even
if
they're
the
same
type
of
insurance.
Credit
Bureaus
Credit
bureaus,
also
called
credit
agencies
or
credit
reporting
agencies,
are
companies
that
collect
credit
information
about
individuals.
They
then
calculate
a
credit
score
for
each
individual
based
on
this
information.
Note
that
credit
bureaus
are
private,
for-
profit
businesses-they
are
not
part
of
the
government,
though
they
are
overseen
by
various
government
agencies.
In
the
United
States,
the
three
major
credit
bureaus
are
Equifax,
Experian,
and
TransUnion.
Credit
CARD
Accountability
Act
of
2009
A
law
that
established
fair
credit
card
practices.
It
puts
restrictions
on
when
credit
car
companies
must
provide
credit
card
bills,
accept
payments,
and
notify
consumers
of
changes
to
fees
or
rates.
Credit
Cards
A
credit
card
is
a
payment
type
that
does
not
automatically
draw
money
from
your
account.
Instead,
it
provides
a
short-term
loan
that
you
can
use
to
make
everyday
purchases.
Credit
card
loans
are
unsecured,
which
means
the
credit
card
company
can't
take
your
valuables
away
from
you
if
you
don't
pay
the
loan
back.
This
is
why
credit
card
companies
charge
a
high
interest
rate
on
the
money
you
owe
them--so
they
can
make
money
off
of
your
loan.
Credit
History
Credit
history
is
a
record
of
a
person's
borrowing
and
repayment
activity.
Whenever
you
take
out
a
loan
or
a
line
of
credit,
it
goes
on
your
credit
history,
along
with
all
the
payments
you
make
towards
the
loan.
This
includes
any
detrimental
information
such
as
late
payments.
Consumer
credit
history
is
tracked
by
the
credit
bureaus.
Your
credit
history
is
the
information
that
goes
into
your
credit
report,
though
the
two
terms
are
sometimes
used
interchangeably.
Think
of
it
like
this:
Credit
history
is
what
you've
done,
while
a
credit
report
is
where
it's
written
down.
Credit
Limit
The
amount
of
money
that
you
are
able
to
charge
to
a
credit
card.
If
you
exceed
this
limit,
your
purchase
may
not
go
through
and
you
could
be
penalized.
Credit
Report
A
credit
report
is
a
record
that
details
a
person's
credit
history.
It
also
includes
identifying
information,
such
as
names
and
addresses,
so
that
an
individual
can
be
matched
with
his
or
her
credit
history.
Credit
Score
Your
credit
score
is
a
numerical
rating
of
your
credit-worthiness
(how
likely
you
are
to
pay
off
your
debts).
In
the
United
States,
the
most
commonly
used
credit
score
is
the
FICO
score.
Credit
score
is
based
on
the
information
in
credit
reports
from
the
three
main
credit
bureaus.
Credit
Union
A
credit
union
is
a
cooperative
bank,
meaning
it
is
privately
owned
and
controlled
by
its
members.
Its
primary
purpose
is
to
provide
credit
at
low
rates
to
its
members.
Credit
In
regards
to
a
bank
account,
when
money
is
added
into
a
bank
account
(also
known
as
a
'deposit').
In
regards
to
lending,
a
sum
of
money
owed.
D
Debit
Card
A
payment
type
that
allows
you
to
make
electronic
purchases
that
debit
the
cost
of
the
purchase
directly
from
your
checking
account.
Debit
When
money
is
taken
out
of
a
bank
account
(also
known
as
a
'withdrawal').
Deductible
Your
deductible
is
the
amount
you
are
required
to
pay
toward
each
claim
you
make
before
your
insurance
kicks
in.
This
cost
is
in
addition
to
the
regular
price
of
your
premium.
Deduction
In
tax
terms,
an
expense
incurred
by
a
taxpayer
that
is
subtracted
from
gross
income
when
the
taxpayer
computes
his
or
her
income
taxes.
Default
Occurs
when
a
borrower
is
unable
or
unwilling
to
repay
a
debt
or
required
payment.
Deposit
When
money
is
added
into
a
bank
account
(also
known
as
a
'credit').
Depreciating
Asset
A
depreciating
asset
is
something
you
own
that
decreases
in
value
over
time,
meaning
that
if
you
sell
the
asset,
you'll
get
less
money
than
you
paid
for
it
originally.
Direct
debit
Also
known
as
ACH
(Automatic
Clearing
House)
transfer.
Allows
you
to
have
money
come
out
of
your
account
one
time
or
automatically.
Direct
deposit
Also
known
as
ACH
(Automatic
Clearing
House)
transfer.
Allows
you
to
have
money
come
into
your
account
one
time
or
automatically.
Disability
Insurance
A
type
of
insurance
that
helps
cover
lost
income
when
an
illness
or
injury
prevents
you
from
working.
Diversification
A
risk
management
technique
in
which
investors
combine
a
variety
of
investments
assets
in
their
portfolio
in
order
to
minimize
risk.
Dividend
A
distribution
of
a
percentage
of
a
companys
profit
paid
to
stockholders.
Dow
Jones
Industrial
Average
An
index
that
represents
the
performance
of
the
30
largest
companies
in
the
United
States.
The
idea
is
that
if
those
big
companies
are
doing
well,
the
stock
market
is
doing
well,
and
if
they're
doing
badly,
the
stock
market
is
doing
badly.
Down
Payment
An
upfront
payment
made
when
an
item
is
bought
on
credit.
Down
payments
are
usually
provided
at
the
time
of
purchase
particularly
when
purchasing
larger
items,
like
a
house
or
car.
E
Equifax
One
of
the
three
major
credit
bureaus
in
the
United
States,
which
tracks
credit
histories,
creates
credit
reports,
and
calculates
credit
scores.
Expenses
Expenses
are
anything
you
spend
money
on,
from
a
pack
of
gum
to
your
monthly
cell
phone
bill.
Experian
One
of
the
three
major
credit
bureaus
in
the
United
States,
which
tracks
credit
histories,
creates
credit
reports,
and
calculates
credit
scores.
F
FAFSA
FAFSA
is
the
Free
Application
for
Federal
Student
Aid.
This
is
the
main
form
students
use
to
apply
for
federal
education
grants
and
loans.
The
amount
of
money
a
student
is
given
or
loaned
depends
on
several
factors,
such
as
your
family's
income,
your
marital
status,
the
type
of
school
you're
planning
to
attend,
and
more.
FDIC
FDIC
stands
for
the
Federal
Deposit
Insurance
Corporation,
which
insures
deposits
at
banks
that
have
purchased
the
coverage.
FICO
FICO
is
an
acronym
for
the
Fair
Isaac
Corporation,
the
company
that
developed
the
FICO
score,
which
is
the
most
commonly
used
credit
score
in
the
United
States.
There
are
others,
but
FICO
is
most
commonly
used.
When
someone
says
'credit
score,'
it's
almost
always
FICO
they're
talking
about.
FICO
scores
range
from
300
to
850.
Fair
Credit
Reporting
Act
The
Fair
Credit
Reporting
Act
ensures
that
the
information
in
your
credit
report
is
accurate,
complete,
and
private.
It
requires
correct
use
of
credit
reports.
As
a
consumer,
this
act
also
gives
you
the
right
to
view
your
credit
report
and
dispute
incorrect
information.
Fair
Debt
Collection
Practices
Act
The
Fair
Debt
Collection
Practices
Act
aims
at
doing
away
with
abusive
and
deceptive
practices
by
those
who
collect
debt.
For
example,
it
regulates
the
hours
that
collectors
may
call
a
consumer
and
prohibits
collectors
from
publishing
a
consumer's
name
or
address
on
a
'bad
debt'
list.
Federal
Funds
Interest
Rate
An
interest
rate
set
by
the
Federal
Reserve
Bank
in
any
given
year
that
regulates
interest
rates
on
government
loans.
Federal
Income
Tax
Bracket
Brackets
that
determine,
based
on
how
much
income
an
individual
makes,
what
percentage
of
that
income
will
be
owed
in
taxes.
Federal
Income
Tax
The
federal
government
charges
income
tax
on
all
its
residents.
In
this
tax
system,
you
are
taxed
on
the
money
you
earn
while
working.
Federal
Reserve
The
Federal
Reserve
is
the
central
banking
system
of
the
United
States.
It
is
composed
of
a
Board
of
Governors,
the
Federal
Open
Market
Committee
(FOMC),
and
12
regional
Federal
Reserve
Banks.
These
three
parts
work
together
to
prevent
banking
disasters
and
promote
a
healthy
economy.
Federal
Student
Loans
Federal
Student
Loans
are
offered
directly
to
students
by
the
government.
Federal
law
sets
the
maximum
interest
rates
and
fees
lenders
may
charge
for
these
loans.
Because
of
this,
their
interest
rates
are
lower
than
interest
rates
on
other
types
of
loans.
Federal
Student
Loans
are
awarded
to
students
and
the
parents
of
students
based
primarily
on
financial
need.
Federal
Trade
Commission
The
Federal
Trade
Commission
(FTC)
is
a
U.S.
government
agency
that
protects
consumers
against
false
advertising
and
other
unfair
business
practices.
Federal
Work-Study
Program
A
part-time
employment
that
can
be
awarded
as
part
of
a
federal
financial
aid
package.
Fee
Schedule
A
detail
of
all
the
fees
that
may
be
charged
on
a
bank
account.
Fixed
Rate
This
refers
to
an
interest
rate
that
remains
fixed,
or
the
same,
over
the
life
of
the
loan.
Foreclosure
The
process
by
which
a
bank
or
other
entity
takes
possession
of
a
mortgaged
property
when
mortgage
payments
are
not
being
made.
Fund
Manager
Someone
who
oversees
a
mutual
fund
and
makes
the
investment
decisions
for
the
fund.
G
Grace
Period
In
reference
to
credit
cards,
this
is
the
amount
of
time
you
have
to
pay
back
a
balance
before
it
starts
accumulating
interest.
Grant
Grants
are
given
to
students
to
help
pay
for
their
education
and
do
not
have
to
be
repaid.
Students
must
apply
for
grants,
which
a
school
or
organization
usually
awards
based
on
merit,
financial
need,
or
a
combination
of
the
two.
H
Hard
credit
inquiry
A
type
of
credit
inquiry
that
occurs
when
someone
checks
your
credit
history
to
make
a
lending
decision.
A
hard
inquiry
affects
your
credit
score
and
can
remain
on
your
credit
report
for
up
to
two
years.
Health
insurance
A
type
of
insurance
that
covers
the
cost
of
medical
expenses.
Homeowners
insurance
A
type
of
insurance
that
covers
your
home
as
well
as
your
possessions
inside
it
in
case
of
damage
or
loss.
I
IRA
Stands
for
Individual
Retirement
Account.
A
retirement
account
designed
for
individual
savers
that
offers
tax
savings,
but
has
contribution
limits
and
withdrawal
restrictions.
IRS
Stands
for
the
Internal
Revenue
Service.
The
government
agency
in
charge
of
collecting
taxes
from
US
citizens.
Identity
Theft
A
form
of
fraud.
Identify
thieves
use
another
person's
personal
information
in
order
to
steal
that
person's
money
or
gain
access
to
other
benefits.
Common
forms
are
credit
card
fraud,
phone
and
utility
theft,
and
banking
fraud.
Income
The
government
defines
income
as
any
form
of
money,
property,
or
services
that
you
receive.
Index
Fund
A
specific
fund
that
is
made
to
track
the
overall
performance
of
the
market,
a
certain
investment
type,
or
group
of
stocks.
Initial
Fraud
Alert
An
alert
put
on
your
credit
file
to
help
prevent
additional
identity
theft.
The
alert
stays
on
your
file
for
90
days,
at
which
point
you
can
choose
to
renew
it
if
necessary.
Interest
Rate
An
interest
rate
is
the
percentage
of
interest
you
either
make
or
pay
on
a
principal
(like
1%
or
5%).
Say
you
have
a
savings
account
with
$1,000
and
a
5%
interest
rate.
5%
of
$1,000
nets
you
$50.
Interest
Interest
is
the
fee
someone
pays
to
be
able
to
borrow
money.
You
either
pay
interest
on
money
you
borrow
(like
when
you
take
out
a
loan
to
buy
a
car)
or
you
make
interest
on
the
money
you
save
(like
when
a
bank
pays
you
interest
on
money
you
put
into
a
savings
account).
Investment
When
you
spend
money
on
something
to
gain
profitable
returns,
as
interest,
income,
or
appreciation
in
value.
J
Junk
Bonds
A
type
of
bond
that
has
the
potential
for
high
returns,
but
with
a
high
risk
of
default.
L
Landlord
The
owner
of
a
property.
Lease
A
lease
is
a
rental
agreement.
It
lays
out
the
terms
for
the
property
you'd
like
to
rent:
how
much
you're
going
to
pay
and
how
long
(and
how
often)
you're
going
to
pay
it.
The
most
familiar
use
of
a
lease
is
in
the
rental
of
housing,
like
an
apartment.
In
this
case,
it
refers
to
the
document
you
sign
with
the
owner
that
gives
you
the
right
to
live
there
in
exchange
for
paying
the
rent
and
complying
with
any
other
requirements.
It's
also
used
when
leasing
a
car,
which
is
really
just
a
long-term
rental
agreement.
You
lease
the
car
for
a
period
of
time,
and
when
that
time
is
up,
you
return
it
to
the
dealer.
Life
Insurance
A
type
of
insurance
that
ensures
that
another
person
(called
a
beneficiary)
will
be
financially
protected
if
you
pass
away.
Liquidity
Refers
to
how
easily
and
quickly
your
assets,
like
your
money,
can
be
moved.
Loan
Officer
Someone
who
advises,
evaluates,
and
signs
off
on
loans
to
individuals
and
business.
M
Maintenance
Costs
Costs
associated
with
ownership
of
a
house,
a
car,
or
a
similar
purchase
that
are
the
owner's
responsibility.
Medicare
A
tax
that
pays
for
health
care
for
people
aged
65
and
over.
Merchant
Credit
Card
A
card
that
you
sign
up
for
at
a
store,
which
may
offer
discounts
or
other
rewards.
These
cards
function
like
a
regular
credit
card.
Minimum
Monthly
Payment
In
regards
to
credit
cards,
this
refers
to
the
least
amount
of
money
you
are
obligated
to
pay
back
on
a
monthly
basis
to
avoid
fees
and
penalties
associated
with
not
paying
the
minimum
amount.
Money
Market
Deposit
Account
A
part
checking,
part
savings
account.
It
requires
a
high
minimum
balance
but
also
offers
a
higher
interest
rate.
You're
usually
allowed
three
to
six
withdrawals
per
month
without
being
penalized.
Money
Market
Savings
Account
A
type
of
savings
vehicle
that
usually
requires
high
minimum
balances
but
offers
higher
interest
rates.
Money
order
A
payment
type
paid
for
upfront
and
used
to
pay
for
goods
or
services.
Money
orders
function
like
cash,
but
are
safer
because
you
are
able
to
specific
whom
the
money
order
should
go
to.
Mortgage
A
mortgage
is
a
type
of
loan
used
to
finance
the
purchase
of
real
estate.
At
a
basic
level,
it
works
just
like
any
other
loan:
someone
wants
to
purchase
something
(in
this
case,
a
house)
but
doesn't
have
enough
money
to
p
ay
for
it
all
at
once,
so
they
borrow
money
from
a
bank
to
do
so.
Then
they
pay
back
the
money
they
borrowed
in
installments,
with
interest.
Municipal
bond
A
bond
issued
by
a
state,
county
or
city
government.
Mutual
Funds
A
mutual
fund
is
a
collection
of
investment
vehicles
that
you
can
buy
as
a
single
package,
rather
than
purchasing
individual
stocks,
bonds,
and
other
investments
yourself.
Investors
purchase
shares
of
the
mutual
fund.
The
mutual
fund
then
uses
that
money
to
buy
the
investment
vehicles
that
go
in
the
fund.
N
NASDAQ
The
NASDAQ,
which
stands
for
the
National
Association
of
Securities
Dealers
Automated
Quotations,
was
the
world's
first
electronic
stock
market.
NASDAQ
trades
are
made
via
computer
rather
than
in
person
or
over
the
phone.
Need
When
referring
to
budgeting,
a
need
is
an
expense
that
is
an
absolute
necessity.
Nest
egg
An
amount
of
money
usually
saved
over
a
long
period
of
time
that
is
used
to
pay
for
something
in
the
future,
like
retirement.
NYSE
The
New
York
Stock
Exchange
(NYSE)
is
the
largest
stock
exchange
in
the
world
in
terms
of
amount
of
money
traded.
As
the
name
suggests,
it's
located
in
New
York
City,
on
Wall
Street,
the
main
financial
district.
O
Online
Access
Some
bank
accounts
offer
this
as
a
way
to
allow
customers
to
complete
some
financial
transactions
electronically,
via
the
Internet,
like
checking
account
balances
and
making
transfers.
Online
Transfer
A
transfer
of
funds
from
one
account
or
individual
to
another
through
a
banks
website
or
mobile
application.
P
Payday
Lenders
Payday
lenders
offer
small
cash
loans,
usually
in
the
range
of
$100
to
$500,
with
payment
due
in
full
at
the
borrower's
next
paycheck.
Payment
History
A
history
of
the
payments
you
have
made
on
all
credit
you
have
obtained,
which
affects
your
credit
score.
Tracks
such
things
as
whether
or
not
you
pay
your
bills
on
time,
whether
or
not
you
always
pay
at
least
the
minimum
amount,
etc.
Payment
Types
Payment
types
are
what
you
actually
use
to
buy
something.
There
are
lots
of
options:
cash,
checks,
debit
cards,
and
credit
cards
are
just
a
few.
Pell
grant
A
grant
awarded
based
on
financial
need
by
the
U.S.
federal
government
to
help
students
pay
for
higher
education.
Perkins
Loan
One
of
the
most
common
types
of
federal
student
loan,
awarded
based
on
limits
that
are
set
for
any
individual
loan
as
well
as
on
financial
need.
Perkins
loans
have
a
set
5%
interest
rate
and
a
10
year
repayment
period.
Personal
Check
A
paper
payment
type.
You
can
write
and
sign
a
personal
check
to
pay
for
purchases
at
places
that
accept
them,
and
funds
from
personal
checks
are
drawn
directly
from
your
checking
account.
Pet
Deposit
An
amount
of
money,
usually
specified
in
the
lease
agreement,
used
to
cover
any
rental
property
damages
caused
by
a
pet.
Phishing
scam
A
scam
where
someone
tries
to
deceive
you
into
providing
personal
information
by
impersonating
someone,
like
a
bank
representative.
PIN
Stands
for
Personal
Identification
Number.
Often
used
to
complete
a
transaction
made
with
a
debit
card.
Policy
When
relating
to
insurance,
a
policy
is
the
document
that
outlines
the
terms
and
conditions
for
your
insurance
coverage.
Portfolio
When
relating
to
investments,
a
portfolio
refers
to
the
range
of
investments
held
by
an
individual
or
organization.
Premium
The
premium
is
the
amount
you
pay
to
have
insurance
for
a
specific
amount
of
time.
A
premium
covers
a
set
amount
of
time
(for
example,
a
year)
and
payment
may
be
due
all
at
once
or
divided
and
paid
on
a
regular
basis,
such
as
monthly.
Prepaid
card
A
card
that
allows
you
to
put
a
specific
amount
of
money
onto
them.
Prepaid
cards
usually
come
with
additional
fees
and
charges.
Principal
Principal
is
the
sum
of
money
you
put
into
an
account
or
the
amount
of
money
(minus
interest)
you
owe
on
a
debt.
So
if
you
open
an
account
with
$500
(or
take
out
a
loan
for
$500),
the
principal
amount
in
either
case
is
$500.
Private
Student
Loans
Private
Student
Loans
are
financed
by
private
companies
rather
than
the
government.
Since
interest
rates
and
fees
for
these
loans
aren't
capped
by
the
government,
they
cost
more
than
federal
loans.
Property
Tax
Property
taxes
are
taxes
an
owner
pays
on
the
value
of
any
owned
property,
including
land,
buildings,
or
houses.
R
Rate
of
Return
Rate
of
return
(ROR)
is
the
ratio
of
the
money
you
gain
on
an
investment
in
relation
to
the
amount
of
money
that
was
invested.
For
example,
if
you
invest
$100
and
generate
a
$25
return,
the
investment
has
a
25%
rate
of
return:
$25
return
/
$100
investment
=
25%
ROR.
Rate
of
return
is
often
expressed
in
terms
of
the
annual
rate
of
return
on
an
investment.
So,
if
an
investment
has
a
15%
annual
rate
of
return
and
you
invest
$1,000
at
the
beginning
of
the
year,
at
the
end
of
the
year
you'd
have
$1,150
altogether.
Registration
fees
When
referring
to
a
vehicle,
registration
fees
are
a
compulsory
charge
for
registering
the
vehicle
with
a
government
authority,
usually
a
state
or
county.
Renters
Insurance
A
type
of
insurance
that
can
protect
you
from
damage
or
loss
of
your
items
in
a
rental
property.
Rent-to-own
Agreement
An
agreement
where
your
rental
payment
goes
towards
owning
the
property
later
on.
Required
Balance
A
certain
amount
of
money
you
must
have
in
some
bank
accounts
at
any
given
time
to
avoid
being
penalized.
Retail
Bank
A
retail
bank
deals
directly
with
individual
customers
and
small
businesses.
It
doesn't
have
big
corporations
or
other
banks
as
customers.
Return
Refers
to
how
much
money
an
investor
could
potentially
earn
from
an
investment.
Usually
expressed
as
a
percentage.
Risk
In
investing
terms,
the
chance
you
take
that
an
investment
may
or
may
not
result
in
a
return.
ROI
Stands
for
Return
on
Investment.
Roth
IRA
An
individual
retirement
account
designed
for
individual
savers.
With
a
Roth
IRA,
the
money
you
contribute
is
taxed,
which
means
the
money
comes
out
tax-free
when
you
retire.
Roth
IRAs
also
allow
you
to
withdraw
some
of
your
contributions
before
retirement
without
paying
a
penalty,
if
you
use
it
to
pay
for
certain
things
like
buying
your
first
home.
Routing
Number
The
first
range
of
numbers
in
the
series
of
numbers
at
the
bottom
of
a
check
that
indicates
which
Federal
Reserve
district
the
bank
issuing
the
check
belongs
to.
Rule
of
72
A
method
for
estimating
how
long
it
will
take
compound
interest
to
cause
a
principal
to
double
by
dividing
the
interest
rate
by
72.
S
Sales
Tax
Many
states
charge
sales
tax.
This
means
when
you
pay
for
something,
the
sales
tax
is
added
to
the
total
before
you
pay.
Sales
tax
is
usually
a
percentage
of
the
price
of
what
you
purchase.
This
sales
tax
rate
varies
from
state
to
state.
Sales
taxes
don't
figure
into
income
tax.
Savings
Accounts
A
type
of
savings
vehicle
in
which
you
earn
interest
on
the
principal,
usually
without
minimum
balance
requirements
but
lower
interest
rates.
Savings
Plans
A
savings
plan
is
a
way
to
save
money
for
the
long-term,
which
for
most
people
means
retirement.
Examples
of
these
savings
plans
include
401(k)
and
403(b)s,
which
are
employer-sponsored
retirement
plans
to
which
both
the
employee
and
employer
contribute,
and
IRA
and
Roth
IRAs,
which
are
retirement
accounts
set
up
by
individuals.
Savings
Vehicles
Savings
vehicles
are
accounts
designed
to
let
you
set
aside
money
that
is
separate
from
your
checking
account.
You
can
open
savings
vehicles
at
most
banks.
They
come
in
a
variety
of
forms,
including
savings
accounts
and
auto-save
with
online
banking,
money
market
accounts,
and
Certificates
of
Deposit
(CDs).
Savings
and
Loans
Savings
and
Loans
are
banks
that
specialize
in
accepting
savings
deposits
and
making
mortgage
loans.
They
do
not
offer
loans
to
commercial
businesses.
Scholarship
Scholarships
are
given
to
students
to
help
pay
for
their
education
and
do
not
have
to
be
repaid.
Students
must
apply
for
scholarships,
which
a
school
or
organization
usually
awards
based
on
merit,
financial
need,
or
a
combination
of
the
two.
Security
A
security
is
a
term
referring
to
a
category
of
investments.
Stocks,
bonds,
mutual
funds,
and
many
other
types
of
investments
are
all
securities.
Security
Deposit
An
amount
of
money
that
the
property
owner
holds
onto
during
the
lease
that
can
later
be
used
to
pay
for
any
damages
to
the
property
caused
by
the
renter.
Usually
equal
to
one
months
rent
Shareholders
In
investing
terms,
another
name
for
a
Stockholder.
Shares
In
investing
terms,
another
name
for
a
Stock.
Social
Security
A
tax
that
pays
for
the
retirement
benefits
for
people
who
are
currently
retired
and
for
the
future
retired
population.
Social
Security
Number
A
Social
Security
number
(SSN)
is
a
9-digit
number
issued
to
U.S.
citizens,
permanent
residents,
and
temporary
working
residents.
It
is
chi
efly
used
to
track
down
who
should
be
paying
taxes,
and
more
recently
as
a
national
identification
number.
Each
individual
has
his
or
her
own
unique
number.
Soft
credit
inquiry
A
credit
inquiry
that
occurs
when
someone
runs
a
background
check
on
your
credit,
like
when
starting
a
new
job.
This
type
of
inquiry
does
not
affect
your
credit
score.
Stafford
Loan
One
of
the
most
common
types
of
federal
student
loan,
awarded
based
on
limits
that
are
set
for
any
individual
loan
as
well
as
on
financial
need.
Standard
and
Poor
500
An
index
that
represents
the
performance
of
500
companies.
Most
of
these
companies
are
American,
but
not
all.
Since
it
includes
the
performance
of
a
large
number
of
companies,
some
consider
it
to
be
a
more
accurate
representation
of
the
stock
market
as
a
whole.
State
Income
Tax
Most
states
charge
income
tax
on
all
its
residents.
In
this
tax
system,
you
are
taxed
on
the
money
you
earn
while
working.
State
income
taxes
are
charged
in
addition
to
federal
taxes,
though
requirements
for
state
income
tax
vary
from
state
to
state.
Stock
Shares
of
ownership
in
a
company.
If
the
company
grows
in
value,
then
the
value
of
the
stock
grows
in
value
as
well.
Stock
Exchange
A
stock
exchange
is
a
place
where
stocks
are
bought
and
sold.
This
is
known
as
trading
stocks.
A
stock
exchange
can
be
a
real,
physical
location
(the
building
where
trading
takes
place),
but
it
can
also
be
more
of
an
idea,
too.
For
example,
if
you're
making
an
electronic
trade
on
the
New
York
Stock
Exchange,
nothing
will
actually
happen
in
the
NYSE
building,
but
the
trade
will
still
happen
on
that
exchange.
Stock
Market
Indices
The
overall
performance
of
the
stock
market
is
measured
by
stock
market
indices.
A
stock
market
uses
stock
prices
of
multiple
companies
to
estimate
the
performance
of
the
stock
market
as
a
whole.
You
might
hear
about
the
Dow
Jones
being
'up'
or
'down'
indicates
how
the
market
is
doing
that
day.
Think
of
it
a
batting
average
for
the
stock
market.
There
are
many
different
indices,
but
the
three
most
prominent
are
the
Dow
Jones
Industrial
Index,
the
Standard
and
Poor
500,
and
the
Wilshire
5000.
Stock
Ticker
A
stock
ticker
is
a
scrolling
banner
that
provides
stock
information,
often
seen
at
the
bottom
of
the
screen
on
television
news
programs
and
electronic
billboards.
They're
called
'tickers'
because
before
the
invention
of
electronic
displays,
mechanical
printers
were
used
that
made
a
'ticking'
sound.
Stockbroker
A
stockbroker
is
an
individual
who
has
a
license
to
buy
and
sell
stocks
and
other
investments
on
one
or
more
stock
exchanges.
Without
a
license,
you
can't
buy
or
sell
stock
yourself.
Instead,
you
have
to
contact
your
broker,
who
will
then
make
the
transaction
on
your
behalf.
Some
brokers
simply
carry
out
your
instructions
on
what
investments
to
make,
while
others
act
as
advisors,
or
even
handle
their
clients'
investment
decisions
themselves.
Stockholder
Someone
who
owns
stock
in
a
company.
Stocks
A
stock
is
a
share
of
ownership
in
a
company.
Stocks
are
also
called
shares,
or
shares
of
stock.
Owning
stock
in
a
company
means
that
you
actually
own
a
piece
of
the
company.
Someone
who
owns
stock
is
called
a
stockholder
or
shareholder.
All
the
stockholders
in
a
company
share
in
the
ownership
of
the
company.
Some
stocks
pay
dividends,
which
are
the
company's
profits
divided
up
and
distributed
among
all
shareholders.
Stocks
are
bought
and
sold
on
stock
exchanges.
Stock
quotes,
published
both
online
and
in
print,
provide
information
about
stocks'
performance.
The
total
value
of
all
the
stocks
held
by
investors
in
a
company
is
known
as
the
company's
market
capitalization.
Subsidized
Student
Loan
This
is
a
type
of
federal
student
loan
on
which
the
government
pays
the
interest
that
accrues
while
a
student
is
in
school.
T
Tax
Bracket
Brackets
that
determine,
based
on
how
much
income
an
individual
makes,
what
percentage
of
that
income
will
be
owed
in
taxes.
Tax
Deduction
An
expense
incurred
by
a
taxpayer
that
is
subtracted
from
gross
income
when
the
taxpayer
computes
his
or
her
income
taxes.
Tenant
The
renter
of
a
property.
Ticker
Symbol
A
ticker
symbol
is
a
series
of
letters
used
to
identify
a
stock
or
a
mutual
fund.
They
vary
in
length
depending
on
the
type
of
investment
and
the
exchange
where
it
is
traded,
but
the
purpose
is
always
to
provide
a
short,
easy
way
to
identify
investments
at
a
glance
when
reading
a
stock
ticker.
TransUnion
One
of
the
three
major
credit
bureaus
in
the
United
States,
which
tracks
credit
histories,
creates
credit
reports,
and
calculates
credit
scores.
Treasury
bond
A
bond
issued
by
the
U.S.
government
and
therefore
considered
to
have
very
low
risk
of
default.
Truth
in
Lending
Act
The
Truth
in
Lending
Act
(TILA)
requires
that
individuals
and
businesses
extending
credit
(like
your
credit
card
carrier)
reveal
all
the
terms
and
costs
that
are
attached
to
it.
The
purpose
of
TILA
is
to
help
consumers
compare
varying
credit
offers
and
the
use
of
cash
versus
credit.
U
Unsubsidized
Student
Loan
This
is
a
type
of
federal
student
loan
on
which
the
government
does
not
pay
the
interest
that
accrues
while
a
student
is
in
school.
Utilities
Services
like
electricity,
water
or
gas
provided
to
the
public.
V
Variable
Rate
This
refers
to
an
interest
rate
that
is
based
on
an
interest
rate
index,
which
means
the
rate
can
change
over
the
life
of
the
loan.
Volatile
When
relating
to
investments,
volatile
means
that
the
price
of
an
investment
can
be
hard
to
predict
or
can
frequently
change.
W
W-2
A
tax
form
employers
send
to
each
of
their
employees
listing
how
much
money
that
individual
made
during
the
last
year
and
how
much
has
already
been
paid
in
taxes.
W-4
A
tax
form
an
employee
fills
out
that
tells
the
IRS
how
much
money
to
take
out
of
each
of
their
paychecks.
Want
In
reference
to
budgeting,
a
want
is
an
expense
that
is
not
an
absolute
necessity.
Wilshire
5000
An
index
that
includes
stock
prices
from
5,000
companies.
That's
nearly
every
company
traded
in
the
United
States
Withdrawal
When
money
is
taken
out
of
a
bank
account
(also
known
as
a
'debit').
Withholding
An
amount
taken
out
of
you
paycheck
to
pay
for
taxes.
Y
YTD
Stands
for
Year
to
Date