Money Management Flashcards
Allowance
an amount of money that one can use for a certain budget category
APR
annul percentage rate (the percentage cost of credit on a yearly basis)
APY
Annul Percentage yield (percentage of money earned on your savings)
Bank reconcilliation
document created to show how your records and ban’s record of your account agree
bank statement
report showing status of a bank account
bankruptcy
legal process of reducing or eliminating an amount owed
Bond
a type of investment that acts like a loan. (when you buy one, you are loaning money to an organization or the government)
Budget
detailed plans for the financial needs of an individual, family or business.
Cash flow statement
report of net wages and other incomes along with the spending for a period of time(month, quarter, or year.)
Check register/transaction log
small book used for recording account activity
collateral
something of value used to secure a loan (usually automobile, house, something high dollar)
Credit
privilege of using someone else’s money for a period of time.
Credit union
user owned, not for profit, cooperative financial institution
Credit rating
person’s reputation for paying bills on time
FDIC
Federal Deposit Insurance Corporation (federal agency that helps regulate financial institutions.)
Federal Reserve System
system set up by federal gov’t. to supervise and regulate member banks and to help banks serve the public efficiently
Finance Charge
Total dollar cost of credit including interest and all other charges
Financial plan
report summarizing your current financial condition, acknowledges financial needs, and set direction for your suture financial activities.
fixed expenses
costs that occur on a regular basis and are the same each time
Interest
money you receive for letting someone use your money; money you pay for using someone else’s money
Net worth
difference between a person assets and liabilities
personal assets
your terms of value
variable expenses
costs that differ month to month or quarter to quarter (harder to estimate)
