Money Management

Question 1

Allowance

Answer 1

an amount of money that one can use for a certain budget category

Question 2

APR

Answer 2

annul percentage rate (the percentage cost of credit on a yearly basis)

Question 3

APY

Answer 3

Annul Percentage yield (percentage of money earned on your savings)

Question 4

Bank reconcilliation

Answer 4

document created to show how your records and ban’s record of your account agree

Question 5

bank statement

Answer 5

report showing status of a bank account

Question 6

bankruptcy

Answer 6

legal process of reducing or eliminating an amount owed

Question 7

Bond

Answer 7

a type of investment that acts like a loan. (when you buy one, you are loaning money to an organization or the government)

Question 8

Budget

Answer 8

detailed plans for the financial needs of an individual, family or business.

Question 9

Cash flow statement

Answer 9

report of net wages and other incomes along with the spending for a period of time(month, quarter, or year.)

Question 10

Check register/transaction log

Answer 10

small book used for recording account activity

Question 11

collateral

Answer 11

something of value used to secure a loan (usually automobile, house, something high dollar)

Question 12

Credit

Answer 12

privilege of using someone else’s money for a period of time.

Question 13

Credit union

Answer 13

user owned, not for profit, cooperative financial institution

Question 14

Credit rating

Answer 14

person’s reputation for paying bills on time

Question 15

FDIC

Answer 15

Federal Deposit Insurance Corporation (federal agency that helps regulate financial institutions.)

Question 16

Federal Reserve System

Answer 16

system set up by federal gov’t. to supervise and regulate member banks and to help banks serve the public efficiently

Question 17

Finance Charge

Answer 17

Total dollar cost of credit including interest and all other charges

Question 18

Financial plan

Answer 18

report summarizing your current financial condition, acknowledges financial needs, and set direction for your suture financial activities.

Question 19

fixed expenses

Answer 19

costs that occur on a regular basis and are the same each time

Question 20

Interest

Answer 20

money you receive for letting someone use your money; money you pay for using someone else’s money

Question 21

Net worth

Answer 21

difference between a person assets and liabilities

Question 22

personal assets

Answer 22

your terms of value

Question 23

variable expenses

Answer 23

costs that differ month to month or quarter to quarter (harder to estimate)