These ate the things people cannot live without,such as food, clothing, and shelter.
What you experience on a typical day- whatever is a part of your routine, such as going to your job, attending church, cooking dinner, or walking your dog. Time management helps you make the most of everyday living.
Things you hope to achieve in your life and work toward, getting a good job, completing your college degree, getting married, owning your own home, or running in a marathon,
The condition of your body and mind. A person can be in good health or in bad health, both physically and emotionally.
Not too much or too little of something; not going to an extreme in your pursuit of a goal.
Obtained from food and used by our bodies for growth and maintaining good health.
What is lost by choosing one option instead of another. For example, the opportunity cost of choosing to take an afternoon nap might be a lost trip to the gym.
A sedentary lifestyle is one that involves a lot of sitting around and not enough physical activity.
Stress is a mental or physical tension caused by worry over problems we may be experiencing in life. Stress is a negative emotion.
Time as an Investment
The idea that spending time on a positive activity such as exercise, pursuit of a hobby, or volunteering will pay off in the long run with better physical and mental health.
Organizing and using your time in a way that allows you to meet your daily needs as well as your short and long-term goals with as little stress as possible.
What individuals or cultures think of as important in life, as having meaning, or as being desirable.
Natural or acquired skills or talents.
In terms of a career, an effort one makes (or a milestone one achieves) in bettering one’s career.
An inherent ability or talent.
Entitlements, such as health or lide insurance, available in accordance with a wage agreement, insurance policy, or program.
Achosen pursuit, profession, or occupation.
A planned progression of jobs within one or more professions throughout one’s working life.
Cost of Living
The average cost of life’s basic necessities, such as shelter, food, and clothing.
A letter you send with your resume to provide more information about you.
The process of acquiring knowledge and developing skills, often through formal education resulting in a specialized degree.
Indicates a job accesible to a person who is inexperienced in a particular field.
A regular activity performed in exchange for payment.
A brief account of one’s work experience and qualifications.
A fixed compensation paid regularly for services.
Proficiency acquired through training or experience.
Standard of Living
a level of material comfort in terms of goods and services available to someone
An itemized summary of probable expenditures and income for a given period.
The amount by which expenditures exceed income.
An amount of money spent.
An unchanging expenditure.
An expenditure that varies.
Money that is not spent.
An amount of money remaining after all expenses have been met.
Money received after all adjustments and deductions are made.
An unforeseen cost.
The company or indicidual that owns an apartment.
A legal document signed by both the tenant and the landlord that contains the terms of the agreement, such as the names of the tenant(s), the rent amount, and the responsibilites of the landlord and the tenant.
The location of your apartment is an important safety consideration and also determines your ease of getting to work, buying groceries, etc.
An amount of time required in advance if either the landlord or the tenant wishes to discontinue the rental agreement. This courtesy allows both partie time to make other arrangements.
The payment, usually monthly, that the tenant pays to the landlord.
A sum of moeny usually equal to one month’s rent, held by the landlord to cover any damage to the apartment caused by a tenant.
The person renting the apartment.
The length of a rental agreement, usually a period of one year.
One individual apartment. A large apartment building may contain 20 or more units.
Items and services needed to make a house or apartment functional such as hot water, electricity, natural gas, phone service, and cable service.
Looking for the same product in mutiple stores to find the best price, or to find the best product.
An agreement between a buyer and a seller.
Something that you must have to live from day to day, like food, shelter, and clothing.
The voluntary or involuntary removal of a dangerous product from the market.
Something that can help you improve your day to day life, like a computer, car, or television.
What you think the purchase is worth to you personally, taking into consideration how it will help to improve your life.
Soemthing that won’t help you live from day-to-day, like jewelry, video games, and soda. Once you have met your primary and secondary needs, you can try to make room for some of these things in your budget.
The seller’s promise to fix or replace the product if somthing goes wrong.
Automatic Teller Machine-a bank machine that gives out cash from your account and accepts deposits around the clock.
A car with two front seats and a smaller backseat for occasional passengers. It usually has two doors but sometimes has four.
This covers the car of the insured person and pays for repairs after an accident or cash compensation if the car can’t be repaired. This type of coverage is usually optional.
An agreement that gives one party the use of a commodity for a specified period of time and for a specified price.
This compensates an injured party up to a certain amount outlined in the policy statement. This type of insurance ensures you will be able to pay for any damages you cause.
An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back plus the lending fee,called interest. Payments are normally made over a series of months.
A car that is designed for a maximum passenger space. It has mutiple rows of seats, but often doesn’t offer significant towing power or off-road capability.
No-Fault Auto Insurance
A system under which drivers must have coverage for their own protection. It also limits the damages for which an injured party can sue. Under this system, after an accident both parties would be covered by their own insurance policies. Only some states use this system.
A common type of car that has two rows of seats and a trunk. It can have two doors or four doors. but the backseat should be able to seat adults comfortably.
SUV(Sport Utility Vehicle)
A, A car designed to have multiple rows of seats and significant towing power. Most also have the ability to drive off-road.
Financial institution at which you can get a checking account or savings account.
Monthly printout from your bank that shows all transactions in your accounts.
Basic Checking Account
a no frills checking account that offers a low minimum opening deposite and reduced fees for students
A debit against your checking account written on a paper form.
Check Cashing Service
business that charges a fee to cash a check such as a paycheck. banks will provide this service for free to their customers.
The book in which you keep records of checks, deposits, debit card transactions, and atm withdrawals.
Like a credit card, but directly attached to a checking account, and can be used with a pin to pay for items at a store.
An automatic deposit of a paycheck without having to take a physical check to the bank.
Service fees for use of the checking account, built into the service agreement.
Interest-Bearing Checking Account
A checking account that pays interest on the balance.
Amounts withdrawn from your account beyond the money the account held.
A loan where a borrower gets a cash advanced based on his paycheck. These loans generally must be repaid on the next payday.
Annual Percentage Rate, or the interest rate that the user of a credit card will pay. The APR advertised by creditors varies and should be used to compare different credit card offers.
Making purchases now and paying for them later (also known as borrowing!).
A plastic card used to make purchases now and pay for them later.
Any bank or business that extends credit to others; a lender.
Anyone who owes money; a borrower.
A fee for borrowing money, added to a monthly credit card bill.
The fee, expressed as a percentage, a borrower owes for the use of a creditor’s money. At an interest rate of 10%, a borrower would pay $110 for $100 borrowed.
A temporary interest rate, advertised as a low APR to entice customers to apply for a credit card. After the introductory period, the interest rate will increase to the regular APR.
Additional fees that can be added to a credit card bill if the card holder fails to make at least the minimum payment by the due date.
The smallest required payment that a credit card holder can pay on a monthly bill and still remain in good standing with the lender.
The amount of money borrowed. On a credit card bill, the principal is the purchase price of all items bought with the card.
When a debtors assets are sold to settle unpaid debts and the debtor is no longer responsiblle for further debt beyond what was recovered.
Mail that gives the sender proof of receipt from the U.S. Postal Service.
A summary of a person’s borrowing and repayment history.
a report on a person’s creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
Fair Credit Reporting (FCRA)
Federal law giving consumers the right to view and correct their credit information.
FICO Expansion Score
A creditworthiness score that, like the regular FICO score, has a scale of 300-850, but is based on nontraditional accounts and financial information sources and is designed for young persons, new immagrants, or others without a traditional credit history.
When a bank takes back a property and auctions it off to recover the unpaid loan amount.
Loan with equal number of payments of the same amount over a fixed period of time.
A promise to reclaim an item bought with loaned money if the loan is not repaid.
this stands for annual percentage rate, which is a number calculated by taking into account the total cost of the loan, including what the borrower will pay in interest; this makes it easier to compare different loan offers
Balancing a Checking Account
calculations that are made to determine the difference between the payments from, and deposits to, a checking account
An unattended machine (outside some banks) that dispenses money when a personal coded card is used
A learning period of up to five years including on the job training (with pay) and additional coursework at night. See www.ua.org.
A degree that generally takes two years of study and is awarded by a community, junior, or business college.
An academic which usually takes four years to earn and is awarded by a college or university.
Upward movement from an entry-level job to the job that is a final goal.
A four-year institution of learning where students earn an undergraduate degree (BA or BS degree).
A two-year college that emphasizes career training, or a less expensive way to complete the first two years of college before transferring to a four-year college.
When a degree program is combined with an internship in a company as part of practical education in the field.
Grants and Scholarships
Money to pay for college that does not need to be paid back.
Time spent working for a company in an industry of interest. Can be paid or unpaid, and can last typically from six weeks to a year.
Occupational Training Programs
These range from a half-day weekly during high school to two-year, full-time programs spent learning a trade such as firefighting, medical technology, or IT network management.
Money borrowed to pay for education. This money must be paid back. The best loans have deferred interest. That means interest does not start building until the education period is complete.
An organization of advanced education, that makes the appropriate amenities available for instruction and study and has the necessary certification to award graduate or undergraduate degrees.
Making an online transfer of money; for example, from a savings account to a checking account.
When a criminal uses trickery to convince someone to give up valuable information or items of value.
When a criminal opens a credit card with another persons name and social security number, charges merchandise, and leaves the victim with the unpaid bill. This can be multiplied as identities can be fraudulently sold, and others can continue to use someones good credit to get further credit cards and loans.
The worldwide electronic network including web pages, chat rooms, and online forums.
Service that connects a computer to the internet. Can be done through a cable modem, through DSL or dial ip service over a phone line, or over Wi-Fi in coffee shops and on many college campuses.
Using the Internet and a banks website to keep track of band accounts, moving money from one account to another, and paying bills.
Secret word used, with the username, to access online banking. Banks usually have rules for passwords, such as they must be 6 to 12 characters long and have both numbers and letters.
Important identifying data that lets your online bank know you ar who yousay you are, such as date of birth, sociol security number, and mothers maiden. Never give out this information unless you are certain it is to your own bank and not a fraudelent Web site.
When a criminal sends an e-mail using a scheme to get you to divulge your personal informatioon. Contact your bank immediatly if an e-mail says you will lose your account unless you provide your username and password or any other personal information. It is important not to reply to these emails.
PIN(Personal Identification Number)
A number used to access your account when used with a money card or debit card.
Automatic payments a customer can set up, such as to pay for car insurance or cell phone service. These payments can happen every month, even though they are set up only once.
Account name used to access online banking.
The quick tax form most often used, in paper or online, for thos with uncomplicated tax situations.
Report on interest income sent from the bank to both the IRS and the taxpayer for savings account interest.
Repoert of income made to the IRS and the taxpayer for any moner paid by the job, instead of as a salaried employee.
Short for Federal Insurance Contributions Act, the name given on the paycheck stub for Social Security and Medicare taxes. The employee pays some of the FICA tax, and and the employer pays some of this tax for each employee. Social Security pays benifits for older people, people with disabilaties, and minor children and surviving spouses of deceased workers. Medicare pays for hospital insurance for those over 65.
The total amount of your income before you claim any exemptions or deductions
Tax paid to the state, federal, and local governments based on income earned over the past year.
The amount of deduction given for those not claimed as a dependent on a parents taxes
A reveiw of a tax return by the Irs in which the taxpayer must show proof of all deductions, expenses, and income.
A donation or expense that reduces the taxable income amount.
A number that includes the taxpayer and any dependents. Because most teens are listed as dependents on their parents taxes, their tax exemption is 0.
A check returning the taxpayers money to the taxpayer after tax retuns are filed and the over paid tax is determined.
The table in the 1040EZ booklet showing levels of income on one side and the tax owed on the other side.
Report sent from the employer to both the IRS and the employee, showing gross income, total taxes paid, and total voluntary deductions.
The withholding form each new employee fills out, stating the number of exemptions. the more exemptions listed, the less withholding tax will be taken from the paycheck.
Back End Load
Fees paid to the mutual fund company when selling a mutual fund.
Quarterly payout of profits by a company to all shareholders.
For a mutual fund, an annual percentage the fund takes as payment. Expense ratios of different funds can be compared to find the best value.
The FDIC (Federal Deposit Insurance Corporation) is a gonvernment agency that nsures depositors’ money. Backs and savings and loan companies that are FDIC-insured pay a percentage of their deposits to the FDIC to pay for the insurance.
Front End Load
Fees paid to the mutual fund company as an entry requirment into certain mutual funds.
Rise in prices that effectively makes cash have less buying power.
A safe, low-return investment avalible from banks. There is generally no minimum deposit for this type of account, making it perfect for kids and teens just starting out.
Year To Date Return (YTD)
On a mutual fund statement, a comparison of how the fund has done comapared to its value on the first of the year.
For a savings account, the percentage of interest earned annually. For a stock, the annual dividend divided by the share price.
Adjustable Rate Mortgage
In this type of mortgage the interest rate can vary at certain points in the life of the mortgage. Usually the interest rate is tied to an index such as the U.S. Treasury bill rate. An adjustable rate mortgage is sometimes called a variable rate mortgage.
These are additional costs paid by the borrower when buying or refinancing a home. For example, fees paid for a title search, an appraisal, a loan origination fee, title insurance, taxes, or the cost of a credit report.
A dwelling in which you own your individual unit, and a group or association owns the common areas such as green space, recreation facilities, etc.
A sum of money that you can pay at closing. The selling price of the home less the amount of your down payment is the amount you will need to finance, or borrow.
The monetary value of your ownership. To determine your equity in your home, subtract the amount you still owe on the home from its fair market value, or the price it would sell for.
Fixed Rate Mortgage
In this type of mortgage the interest rate remains the same throughout the life of the mortgage; it will not increase or decrease. Your payment due will be the same each month.
A legal document that uses property to secure a loan. Often the loan itself is referred to as a mortgage.
A point is equal to 1% of the amount of the loan. Sometimes by paying more points at closing you can reduce the interest rate on your loan.
PMI (Private Mortgage Insurance)
Insurance that protects the lender in case the borrower defaults and is unable to repay the loan. Generally a borrower must pay PMI if their equity is less than 20% of the home’s value.
Single Family Home
A free-standing residential building meant for one family to occupy, usually found outside of cities and in neighborhoods with other single family homes. Most single family homes have a yard as well.
Seperate types of investments, such as stocks/stock mutual funds, bonds/bond funds, money market accounts, and international stocks/international stock funds. Each asset class has typical risks and returns, and a certain investment within that class may perform better or worse than its peers.
When you sell a stock for more than you paid for it, the difference is called a capital gain. Capital gains are income that must be reported on taxes.
When what you sell a stock for is less than what you originally paid for the stock, the difference is called a capital loss.
A share in a company’s assets and profits. The ownership of a publicly traded company is split up into the shares of stock being traded and held.
Money paid by a corporation to each shareholder. Typically given four times a year, these distributions of company profits can be used to reinvest in more shares of the company.
A mutual fund or account that invests in short-term, liquid investments. These funds generally pay better than a savings account with a bank, but less than a typical stock mutual fund. These funds are considered very low risk.
A mutual fund is a pool of stocks, bonds, and other securities managed by an investment company. Individuals can buy shares of the fund and profit from its investment gains.
An incorporated business that does not trade shares of stock on an open market. It is owned privately, typically by a small number of people.
An incorporated business owned jointly by all stockholders. Stockholders vote on who will oversee the company as a Board of Directors. Usually, the company profits are paid out in the form of dividends.
Rate of Return
The annual amount of money an investment makes, given as a percentage. For example, a $100 investment that is worth $112 the next year had a 12% return.
The chance that an investment may lose value. Less risky investments have a lower rate of return.
Monetary increase that an investment makes. If an investment loses value, it is called a negative return.
A time with generally falling stock prices.
Blue Chip Stock
Stocks issued by solid and reliable companies with long records of growth and stability. These stocks usually pay small but reliable dividends and maintain a steady stock price.
Money loaned to the government corporations, or muncipalities that pays the investor interest. Different types of bonds can be more or less risky, and bonds can have high yields or low yields (interest rates).
A time with generally rising stock prices.
Stocks of companies that produce such staples as food, beverages, and phamaceuticals, and insurance companies. These businesses may not grow enormously fast, but they should keep their value relatively constant.
Owning a collection of investments such as stocks from different industries and small and large companies, bonds, and money market funds for cash, in order to spread risk and have a safer investment overall.
Stocks of companies that generally do not pay dividends or pay only very small dividends. These companies plow their profits back into growing the business. They can be new and entrepreneurial companies, and can experience high growth or financial failure.
The collection of investments you personally hold, including stocks, bonds, money market accounts, and savings account.
Stocks of very large companies such as Walmart, General Electric, and IBM, that have a market capitalization of between $10 billion and $200 billion.
Personal Investing Plan
A collection of investments tailored to your investment risk tolerance and time horizon. Any plan only works as well as your ability to stick with it, including sometimes selling “winners” to keep your overall spread of investments to where you want it to be.
Stocks of largely uknown companies with smaller market capitalization, that is, dollar value of total stock ownership. Small-cap stocks generally have a market capitalization of between $300 million and $2 billion.
A type of employer-sponsored retirement plan in which money is contributed on a pre-tax basis and all earnings are tax deferred.
An investment contract made with the issuer (e.g., insurance company); types: immediate, deferred, fixed, variable.
A type of retirement plan, usually a pension, in which the payment amount is guaranteed.
A type of retirement plan in which the amount invested in the plan is controlled by the employee, with no guarantee of benefits.
Employer-sponsored retirement plan
A savings plan for retirement that is offered through a company’s benefits package; contributions are usually matched by the company.
IRA (Individual Retirement Account)
A type of retirement-savings plan that is not usually done through an employer; traditonal IRAs are tax deductible and earnings are tax deferred.
A retirement savings plan for self-employed professionals or owners of small businesses; it affords the same tax benefits as a 401(k).
A fixed sum paid regularly by an employer to an employee after retirement.
Permanent withdrawal from the workforce.
This type of Individual Retirement Account is not tax deductible, but may not be subject to income tax upon withdrawal.
A United States government program established in 1935 that includes a retirement benefit for citzens; it is funded by payroll tax.
A type of insurance that covers property damage or legal liabilities in the event of an auto accident, or property damage in the event of theft.
The individual or group of individuals named to recieve the benefit of a life insurance policy.
The things that are protected or covered in an insurance policy.
The amount of the loss you pay when you file an insurance claim.
The persons who depend on someone for their livelihood. Most often these are minor children and the spouse but can be adult siblings, adult children, and elderly parents.
A type of insurance that replaces the income of the insured individual if he or she cannot work due to injury or illness.
A type of insurance that covers the cost of both planned and unexpected health services.
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