Compensation received by employees for services performed. An organization or person that lends money with the expectation that it will be repaid, generally with interest. Bank - a state or federally chartered for-profit financial institution that offers commercial and consumer loans and other financial services. Indexes are available for the U.S. and various geographic areas. Describes a type of work with associated tasks, education and training, typical wages, work settings, and more. A certificate is not a degree. Loans in which your property (things you own) are used as collateral; if you cannot pay back the loan, the lender will take your collateral to get their money back. Bonds with an elevated chance of default and, usually, an elevated yield. Private loans are generally more expensive than federal loans. The issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal — also known as the bond’s face value or par value — when the bond "matures," or comes due after a set period. A fee you may be charged if you check your prepaid card balance at an ATM or if you call customer service to ask about your balance. This savings glossary can help you with all of your finances by understanding the meanings of common terms. A certificate or credential that an educational institution awards after a student completes formal schooling lasting from a few weeks to two years after high school. These cards can be used at any location that accepts that card type. A tax-advantaged savings plan designed to help families save money for future educational costs. Includes both personal and business or corporate income taxes. It considers everything you own or have certain interests in at the date of death. Debt is a common house-hold liability. An open-ended loan that allows you to borrow money up to a certain limit and carry over an unpaid balance from month to month. Inflation occurs when the prices of goods and services increase over time. You might also end up paying more by consolidating debt into another type of loan. To commit money to earn a financial return; the strategic purchase or sale of assets to produce income or capital gains. Lesson Plans. Building Credit Toggle Dropdown. A type of prepaid card you get from your employer that you receive your paycheck on. You can use your credit card to make purchases up to your credit limit. This type of card has a network logo on it. This relates to personal economic satisfaction. Annual Fee. A fee charged by a lender, and paid by a borrower, for the use of money. People who are financially literate are generally less vulnerable to financial fraud. The Financial Literacy Glossary of Terms provides definitions for terms found in the Financial Literacy Standards and Model Curriculum. For this, you need to know the right terminology, definitions … A tax deducted from your pay to contribute to Social Security and Medicare; your employer contributes the same amount on your behalf. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan. The amount of money that something is worth. Also called “crypto,” it’s a popular type of virtual currency that uses cryptography, a mathematical encryption process, to enhance data protection and provide what’s called pseudonymity, in which individuals are identified by a public alphanumeric key or address. Total pay before taxes and other deductions are taken out. This cost includes deductibles, copayments, and amounts paid for services or repairs that are excluded from coverage. Like a 401(k) or IRA retirement plan, your account could go up or down depending on market performance. Individuals must be able to balance a checkbook, comprehend personal income taxes, and understand the concept of budgetingin order to make wise decisions with money. Home Toggle Dropdown. It calculates money coming in and money going out- income and expenses. Online bill paying may or may not also be offered on a bank’s or credit union’s mobile application. Additional Resources. Typically, line items are grouped together in budget categories. Financially sound enough to justify the extension of credit. The FAFSA may also be used to determine a student’s eligibility for state and school-based aid and also may influence how much private aid a student receives. Credit card that typically requires a cash security deposit. Not all prepaid cards charge inactivity fees. Named for educational psychologist Dr. Benjamin Bloom who, in 1956, led the creation of a framework for classifying educational goals and promoting higher order thinking skills when designing learning activities. When you use a credit card, you’re borrowing money. amount that credit card companies can charge for the use of a credit card. Credit rating: A rating that indicates how good a credit risk you are. The practice or arrangement in which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. This tax can increase the costs of those products, which ultimately can be passed on to consumers as higher prices. A person or company offering insurance policies in return for premiums; person or organization that insures. Glossary. Usually it means you’re using a credit card, but it might also mean that you got a loan. A bill-paying method you set up with the merchant or service provider. The Financial Aid and Scholarships Office does more than connect you with sources of financial aid—we can also help you learn how to use your resources wisely with an eye toward lifelong financial stability. Bank . Once you schedule an appointment online, we will send you a calendar invitation with the virtual meeting information. A word often uttered by companies hoping to snare investors’ attention — and dollars. The practice of comparing prices, features, benefits, risks, and other characteristics of two or more similar products or services. Glossary and Financial Literacy. Coinsurance in insurance, is the splitting or spreading of risk among multiple parties. Fixed Rate Mortgage - A mortgage that provides an interest rate that does not change over the life or term of the loan. A bill-paying method you set up with your bank or credit union. To make sure that somebody or something isn’t harmed, injured, damaged, or lost. Borrowing money, or having the right to borrow money, to buy something. Something that is a disadvantage, money owed, or a debt or obligation according to law. Budget- A budget plan is a chart that shows you the flow of money in your everyday life. Caution: Fiduciaries are like hotties on a dating app — not everyone who tries to look like one actually is. The cost of borrowing money on a yearly basis, expressed as a percentage rate. Something, such as an outcome, you wish to achieve or accomplish in a specific amount of time. The ability to meet all financial needs, today and over time; feel secure in the financial future; absorb a financial shock; and have the financial freedom to make choices to enjoy life. It also includes miscellaneous and personal expenses. Get started. Personal Loans from Marcus by Goldman Sachs®. A paper or electronic document that gives you some basic information about your eligibility for federal student aid and lists your answers to the FAFSA questions. His taxonomy allows educators to categorize activities by their level of challenge and complexity. The lowest national wage as established by law in the Fair Labor Standards Act (FLSA). Financial Literacy. Council for Economic Education, 2017. You pay interest on any outstanding credit card loan balance. A plastic card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account. Glossary. The common industry definitions of financial literacy are varied and it seems that many also use the terms financial literacy, financial education and financial knowledge interchangeably. Be sure to check out iGrad’s COVID-19 Hub to get answers, tips, and advice for staying financially well during the pandemic.. iGrad. A form that the employee completes and the employer uses to determine the amount of income tax to withhold. Frequently Asked Questions . A small company’s shares trading for less than $5 apiece, usually not on a major U.S. exchange (such as the Nasdaq ). An account at a bank (sometimes called a share draft account at a credit union) that allows you to make deposits, pay bills, and make withdrawals. Be sure to ask about fees or read the cardholder agreement associated with your card. This money is deposited for the government and is credited against the employees' tax liability when they file their returns. Generally, states use one of two methods to determine income tax: the graduated income tax or the flat rate income tax. A tax on the value of property you own at your death. A service that allows you to use your smartphone or tablet to manage your bank or credit union account without the aid of a teller. Money made from working for someone who pays you or from running a business or farm. These skills are vitally important; yet, many individuals lack this basic knowledge and consequently are unable to meet their daily expenses. The amount that credit card companies charge for the use of a credit card. Why is Financial Literacy Important? related to AARP volunteering. 1. Why is Financial Literacy Important? Prepaid cards used by a government agency to pay certain government benefits, such as unemployment insurance. To receive something on loan with the understanding that you will return it. Definitions to the Financial Literacy Terms. A budget is a tool you can use to track your exact income and expenses within a set period … by Bruce Horovitz, AARP Bulletin, October 8, 2018 | Comments: 0 But a debt consolidation loan does not erase your debt. You must be logged in to leave a comment. JA encourages feedback and suggested terms to add to this list, so that it becomes a constantly updated resource. Honcho: Slang term describing the leader, manager, chief or person in charge of an organization or a project. Standard 3. You are leaving AARP.org and going to the website of our trusted provider. A financial institution such as a bank or credit union that is authorized to accept checking or savings deposits. An announcement or message delivered, often on radio or television, for the good of the public. Understanding basic money terms and concepts that affect your financial health is the first step toward financial literacy. Money electronically sent to your bank account, credit union account, or prepaid card. A single project or task for which a worker is hired to work on demand. Liabilities –things that are owed; financial obliga-tions that must be paid. 2. The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt. Through the help of the Junior Achievement Communications Committee members, we have put together a dictionary of common financial literacy terms that many people do not know the defintion of. A profession that may span your lifetime and includes your education, training, professional memberships, volunteering, and full history of paid work. Financial Literacy Glossary . Numbers created by mathematical formulas that use key pieces of your credit history to calculate your score at a moment in time. Peers can answer basic money management questions and help you create a personal spending plan. This fee is usually a percentage of your purchase, withdrawal, or other transaction, rather than a flat fee. An account at a bank (sometimes called a share savings account at a credit union) used to set aside money and that pays you interest. The Free Application for Federal Student Aid form is used to determine how much a student and his or her family are eligible to receive in federal financial aid. Secured cards are often used to build credit history. An optional or extra payment a customer gives to an employee. Home / Financial Literacy / Glossary. When you buy a bond, you’re lending to the issuer, which may be a government, municipality, or corporation. If you are an independent contractor, any business client that paid you at least $600 in the previous calendar year will send you a 1099-MISC by January 31st. A bunch of computer code that a bunch of criminals, idealists and speculators agree is worth “real” money. Compensation received by an employee for services performed. The amount of time that an employee works before being paid — for example, a week or a month. The process by which loan payments are applied to the principal, or amount borrowed, as well as the interest on a loan according to a set schedule. PLAY. The amount of money that has to be paid for an insurance policy. Loan - a finance agreement where a person borrows money from a lender and pays it back in instalments (plus interest) within a specified period of time. In such cases, the buyer is the policyholder. Financial literacy is the knowledge and ability to successfully manage one’s finances. A financial plan that helps you track your money, make informed spending decisions, and plan for your financial goals. A fixed amount ($20, for example) you pay for a covered health care service in addition to the amount your insurer pays. Financial Goals. Objects people want that they can touch or hold, such as toys, clothes, and food. A fee your prepaid card provider may charge to replace your card if it is lost, stolen, or damaged. There are two types of 529 plans: 529 prepaid tuition plans and 529 savings plans. A fancy way of asking, “How much of my investments should I have in stocks versus bonds or other stuff?”— a crucial question for retirement investors. In the lending context, principal is the amount of money that you originally received from the creditor and agreed to pay back on the loan with interest. When someone steals your Social Security number to file a tax return claiming a fraudulent refund; may also be called tax-filing-related identity theft. Money that needs to be repaid by the borrower, generally with interest. The CEO of a company could be referred to as the honcho or "head honcho." Financial … A service in which you allow a business to use your cash, your bank or credit union account, a prepaid card, or another payment method to pay your utility, mortgage, or other bills in person, by phone, through a website, or through a mobile phone application. You could want to use your money for reducing debt, saving money for later, making an emergency fund or buying something you need.
Low-dose Birth Control,
Urethane Grout Home Depot,
The Turnaround Agenda,
Oxygen In Lakes,
Jetblue Airways Corporation 2009 Case Study Solution,
Credit Sesame Help Center,
God Save The Queen National Anthem Lyrics,
Ubc Biomedical Engineering Courses,
Licenses And Certifications Online,
Cell Phone Quotes Negative,
Nursing Home Population By State 2019,