Savings Flashcards
Compound Interest
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
Cost-Push Inflation
Inflation caused by an increase in production costs, but demand is the same
Demand-Pull Inflation
Inflation caused by an increase in demand, but supply is the same
FOMO (fear of missing out)
The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website
50-20-30 Rule
A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending
Certificate Of Deposit (CD)
A bank product that earns interest on a lump-sum deposit that’s untouched for a predetermined period of time
Direct Deposit
An automatic electronic deposit of net pay to an employee’s designated bank account
Emergency Fund
Money set aside for unanticipated expenses or loss of income
Federal Deposit Insurance Corporation (FDIC)
The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor
Health Savings Account (HSA)
An account in which you can save pre-tax dollars to pay for out-of-pocket health care expenses
Inflation
The rate at which the price of goods increases and consumer purchasing power decreases over time
Interest
The amount you earn as a benefit of depositing money in an interest bearing account
Impulse Buying
The buying of goods without planning to do so in advance, as a result of a sudden whim or urge
Living Paycheck to Paycheck
Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing
Maintenance Fee
A monthly fee that some banks charge to provide access to checking or savings accounts
