Module Resources
The purpose of this glossary is to organize resources throughout all modules.
Browse the list or use the Search field to filter by keyword.
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BUDGETING 1 |
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ASSETSThings you own of value, even if you still owe money against them. |
BUDGETA spending plan that accounts for your sources of income and all of your monthly annual expenses, as well as your future needs and possibilities. |
CASH FLOWMoney flowing in and out. |
FIXED EXPENSESAn expense that does not change. |
GOALSPersonal objectives you set for how you’ll save your money. |
GROSS PAYAn individual’s total earnings throughout a given period before any deductions, like taxes or benefits, are made. |
INCOMEMoney received or earned, especially on a regular basis, for work or through investments. |
LIABILITIESThe debts and other financial obligations of a person; the opposite of assets. |
MICROSOFT.COM |
MINT.COMMINT.COM website Mint brings together all of your money into one place, provides budgeting tools, and makes your credit score available. |
NET PAYAn individual’s earnings after all deductions, like taxes or benefits, are taken out. |
NET WORTHNet worth is the value of an individual’s assets, minus the liabilities. |
OPPORTUNITY COSTSThe loss of potential gain from other alternatives when one alternative is chosen. |
SAVINGS PLANA plan for how to put money towards short, intermediate, and long-term goals. |
VARIABLE EXPENSESAn expense that can change. |
WEALTHA measure of the total value of all the assets of worth a person possesses. Wealth is personally defined and is not just tied to money. |
CREDIT 1 |
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ANNUAL PERCENTAGE RATE (APR) The annual rate of interest charged to borrowers. |
ANNUALCREDITREPORT.COMANNUALCREDITREPORT.COM website The only source for your free credit reports authorized by Federal Law. |
BANKRATE.COMBANKRATE.COM website Compare interest rates, crunch numbers, and get expert guidance for life's pivotal financial moments. |
COLLATERALCollateral is an asset pledged by a borrower to secure a loan or other credit. |
CONSUMER.FTC.GOVCONSUMER.FTC.GOV website The Federal Trade Commission enforces the credit laws that protect your right to get, use, and maintain credit. |
CONSUMERFINANCE.GOVCONSUMERFINANCE.GOV website The Consumer Financial Protection Bureau is an agency of the U.S. government responsible for consumer protection in the financial sector. |
CREDITGenerally defined as a contract agreement requiring a borrower who has received a sum of money to repay a lender later, typically with interest. Credit can also refer to an individual's creditworthiness or credit history, which is used to determine the likelihood that the individual will repay a debt. |
CREDIT REPORTA credit report is a record of the person’s credit history from a number of sources. |
CREDIT SCOREA credit score is a numerical expression based on a level of analysis of a person’s files, to represent the creditworthiness of an individual. |
CREDIT.COMCREDIT.COM website Get a free credit score and advice from credit experts. Learn how to better manage your credit and which credit products are best for you. |
CREDITKARMA.COM |
CREDITWORTHINESSA lender's willingness to trust a borrower to repay a debt. |
DEBTSomething of value, typically money, that is borrowed by one entity from another entity. |
EQUIFAX.COM |
EXPERIAN.COM |
FINANCE CHARGEThe finance charge is the cost of credit. It includes interest, services charges, and transaction fees. |
FIXED-RATE LOANA fixed-rate loan has an APR set when the loan is opened and remains the same throughout the entire term of the loan. |
INSTALLMENT LOANAn installment loan is a loan that has a set amount and loan term. |
LEVERAGETo use something to maximum advantage (as in leveraging debt). |
LEVERAGING DEBTThe use of debt to amplify returns. |
MYFICO.COMMYFICO.COM website FICO is the most commonly used scoring model used by lenders. A FICO Score is a three-digit number based on the information in your credit reports. |
NET WORTHNet worth is the value of an individual’s assets, minus the liabilities. |
REVOLVING CREDITRevolving credit is a type of loan that does not have a fixed number of payments. |
SECURED LOANA secured loan is a loan guaranteed by something of value (collateral). |
TRANSUNION.COM |
UNSECURED LOANAn unsecured loan is a loan that has no collateral securing the loan. |
VARIABLE-RATE LOANA variable-rate loan is a loan where the APR can change when market indexes or other interest rates fluctuate. |
INVESTING 1 |
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BOND A loan made, typically to a corporation or governmental entity, and provides a fixed income to the investor. |
COMPOUND INTERESTInterest earned on the original investment, plus interest earned on interest added to the investment. |
DIVERSIFICATION |
EXCHANGE TRADED FUND (ETF) An investment fund traded on the stock exchanges. |
EXPENSE RATIO |
FINRA.ORGFINRA.ORG website FINRA oversees financial brokers and provides education resources, fund analyzers, and broker information. |
INVESTOPEDIA.COMINVESTOPEDIA.COM website Investopedia is a resource for individuals interested in learning about investing as well as other personal finance topics. |
INVESTOR.GOVINVESTOR.GOV website Securities and Exchange Commission is a federal government agency with the mission to protect consumers and provides investing information, financial tools and calculators, and the ability to research investment professionals. |
MORNINGSTAR.COMMORNINGSTAR.COM website Morningstar is an independent research and ratings firm that serves as a resource for individuals researching investments. |
MUTUAL FUND An investment fund that pools money from many investors to purchase securities. |
NMLSCONSUMERACCESS.ORGNMLSCONSUMERACCESS.ORG website NMLS Consumer Access is a free service for consumers to confirm that the financial-services company or professional with whom they wish to conduct business is authorized to do so. |
SIMPLE INTERESTInterest earned on the original investment. |
STOCK Part ownership in a public corporation. The investor can earn dividend income and capital gains or suffer capital losses. |
TARGET DATE RETIREMENT FUND A Mutual Fund that gradually changes the mix of stocks versus bonds depending on the age of the investor. |
TIME VALUE OF MONEY The concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. |
TOTAL RETURN The income plus the capital gain/loss earned by the investment. |
PROTECTION 1 |
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AUTOMOBILE INSURANCECoverage for auto accidents or damage to your vehicle in case of theft, collision, or break-in. |
COLLISION COVERAGEIs a no-fault coverage which pays for damages to the insured’s vehicle when in a collision. |
COMPREHENSIVE COVERAGE Provides coverage for the insured’s vehicle in the event of non-collision damages such as theft or a chipped windshield. |
DISABILITY INSURANCE Provides monthly income when one becomes disabled. |
FINANCIAL EXPOSURE Another name for "risk," this is the amount that would be lost if an investment fails. |
GAP INSURANCE Provides protection if the amount owed on a vehicle is more than the current depreciated value of the vehicle. |
GENERAL LIABILITY - AUTO Provides protection against damages caused by a driver's negligence. |
HEALTH INSURANCE Pays for medical treatment for injury or sickness. |
HEALTHCARE.GOVThis site provides information on your state's status with a health insurance Consumer Assistance Program, overview of your legal rights, and information on health insurance enrollment. |
HOMEOWNERS/RENTERS INSURANCE Provides coverage for losses due to damage or destruction to your home or rental. |
LIFE INSURANCEProvides coverage after death and is often paid to a family member. |
NAIC.ORGThe National Association of Insurance Commissioners has learning resources for consumers and can direct you to your state’s insurance department for additional resources or to file a complaint. |
PERSONAL INJURY PROTECTION (PIP) Covers medical bills for individuals injured in a collision. |
UNDERINSURED MOTORIST COVERAGE Provides coverage after the other party’s insurance has been exhausted. |
UNINSURED MOTORIST COVERAGE Provides coverage if one sustains damage caused by an uninsured driver. |
SPENDING 1 |
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ANNUAL PERCENTAGE YIELD (APY)The total annual interest earned on a deposit account; includes interest rate and the frequency of compounding interest. |
APRThe annual rate of interest charged to borrowers. |
ATMAn electronic banking outlet that allows customers to complete basic transactions without the aid of a teller. |
BALANCEThe amount of money you have in your bank account. |
BANKING BASICSThe topics covered in this learning module. |
BANKSFor-profit companies that pay taxes and serve to make its owners a profit. |
CHECKA piece of paper that you write out to indicate how much you want to pay someone. |
CHECKING ACCOUNTA deposit account held at a financial institution that allows withdrawals and deposits. |
ChexSystems®A consumer credit reporting agency that provides data related to how a consumer has handled deposit accounts. |
COMPOUND INTERESTInterest earned on the original investment, plus interest earned on interest added to the investment. |
CREDIT UNIONSNot-for-profit cooperative financial institutions owned and controlled by their members. |
DEBIT CARDA plastic card that has the VISA or Mastercard logo and electronically withdrawals funds from a checking account. |
DEPOSITMoney that you add to your account. |
DIRECT DEPOSITElectronically depositing funds into an account. |
FDICProvides deposit insurance for protection for money in your bank account. |
FEESIn order to make money, a bank or credit union may charge more than just interest. |
Financial Beginnings®The name of the nonprofit who developed this program. |
INFLATIONSustained increase in the price of goods and services in an economy over a period of time. |
INTERESTThe cost of borrowing funds. |
NCUAThe National Credit Union Association insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions. |
NCUSIFThe National Credit Union Share Insurance Fund provides deposit insurance to protect the accounts of credit union members at federally insured institutions in the U.S. |
NEOBANKSDigital-only banks that operate exclusively online or via mobile apps without physical branch locations. |
ONLINE BANKINGMany banks and credit unions allow you to access your account online and do things such as make transfers or pay bills. |
OVERDRAFT PROTECTIONWhen you spend more than is in your account and the bank still pays the items. |
OVERDRAWNYou have a negative balance in your account. |
REGISTERWhere you write down debit purchases and deposits. |
SAVINGS ACCOUNTAn interest-bearing deposit account held at a bank or other financial institution. |
SIMPLE INTERESTInterest earned on the original investment. |
WITHDRAWALThe process of taking money from your bank account. |