Unit 2 Flashcards
Debit card
Spending money you have
List 3 differences between Banks and Credit Unions
Banks are owned by share holders
Banks are larger
Credit Unions have lower rates and fees
Banks are in it for the money
Credit card
Taking out a loan with interest
Dos of credit card use (10)
Pay in full each month Limit yourself to one card Pay cash for wants Are a convenience Manage your account Avoid cash advance and convenience check Mail check asap when you get the statement Track receipts Notify your bank when you move Careful of stolen card
Don’t of credit card use (6)
Pay for tuition with card Skip payments Exceed limit Teaser rates Use one to pay another Spend limit
Consequences of irresponsible credit card use (7)
Denied credit and loans Higher interest rates Difficulty renting Denied employment Denied college Higher insurance Higher cell phone plans
Largest credit union in idaho
Idaho Central Credit Union
Stockbroker
Person who buys and sells securities for investors
Liquidity
Ability of an asset to be converted into cash quickly
Discretionary income
Amount of money left over after the bills are payed
Long term goals
Money saved for retirement, college etc
Compound interest
Interest computed on the principle plus the earned interest
Principal
A sum of money in a savings account that earns interest
Certificate of deposit
A sum of money deposited for a set length of time
Early withdrawal penalty
Fee charged for withdrawing money from a CD early
