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.
Browse the glossary using this index
Special | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL
Entries starting with: A |
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ANNUAL PERCENTAGE RATE (APR) The annual rate of interest charged to borrowers. |
ANNUAL PERCENTAGE YIELD (APY)The total annual interest earned on a deposit account; includes interest rate and the frequency of compounding interest. |
ANNUALCREDITREPORT.COMANNUALCREDITREPORT.COM website The only source for your free credit reports authorized by Federal Law. |
APRThe annual rate of interest charged to borrowers. |
ASSETSThings you own of value, even if you still owe money against them. |
ATMAn electronic banking outlet that allows customers to complete basic transactions without the aid of a teller. |
AUTOMOBILE INSURANCECoverage for auto accidents or damage to your vehicle in case of theft, collision, or break-in. |
Entries starting with: B |
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BALANCEThe amount of money you have in your bank account. |
BANKING BASICSThe topics covered in this learning module. |
BANKRATE.COMBANKRATE.COM website Compare interest rates, crunch numbers, and get expert guidance for life's pivotal financial moments. |
BANKSFor-profit companies that pay taxes and serve to make its owners a profit. |
BOND A loan made, typically to a corporation or governmental entity, and provides a fixed income to the investor. |
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. |
Entries starting with: C |
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CASH FLOWMoney flowing in and out. |
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. |
COLLATERALCollateral is an asset pledged by a borrower to secure a loan or other credit. |
COLLISION COVERAGEIs a no-fault coverage which pays for damages to the insured’s vehicle when in a collision. |
COMPOUND INTERESTInterest earned on the original investment, plus interest earned on interest added to the investment. |
COMPREHENSIVE COVERAGE Provides coverage for the insured’s vehicle in the event of non-collision damages such as theft or a chipped windshield. |
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 UNIONSNot-for-profit cooperative financial institutions owned and controlled by their members. |
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. |
Entries starting with: D |
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DEBIT CARDA plastic card that has the VISA or Mastercard logo and electronically withdrawals funds from a checking account. |
DEBTSomething of value, typically money, that is borrowed by one entity from another entity. |
DEPOSITMoney that you add to your account. |
DIRECT DEPOSITElectronically depositing funds into an account. |
DISABILITY INSURANCE Provides monthly income when one becomes disabled. |
DIVERSIFICATION |
Entries starting with: E |
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EQUIFAX.COM |
EXCHANGE TRADED FUND (ETF) An investment fund traded on the stock exchanges. |
EXPENSE RATIO |
EXPERIAN.COM |
Entries starting with: F |
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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. |
FINANCE CHARGEThe finance charge is the cost of credit. It includes interest, services charges, and transaction fees. |
Financial Beginnings®The name of the nonprofit who developed this program. |
FINANCIAL EXPOSURE Another name for "risk," this is the amount that would be lost if an investment fails. |
FINRA.ORGFINRA.ORG website FINRA oversees financial brokers and provides education resources, fund analyzers, and broker information. |
FIXED EXPENSESAn expense that does not change. |
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. |
Entries starting with: G |
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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. |
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. |
Entries starting with: H |
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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. |
HYPOTHETICALSupposed but not necessarily real or true. |
Entries starting with: I |
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INCOMEMoney received or earned, especially on a regular basis, for work or through investments. |
INFLATIONSustained increase in the price of goods and services in an economy over a period of time. |
INSTALLMENT LOANAn installment loan is a loan that has a set amount and loan term. |
INTERESTThe cost of borrowing funds. |
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. |
Entries starting with: L |
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LEVERAGETo use something to maximum advantage (as in leveraging debt). |
LEVERAGING DEBTThe use of debt to amplify returns. |
LIABILITIESThe debts and other financial obligations of a person; the opposite of assets. |
LIFE INSURANCEProvides coverage after death and is often paid to a family member. |
Entries starting with: M |
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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. |
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. |
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. |
Entries starting with: N |
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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. |
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. |
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. |
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. |
Entries starting with: O |
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ONLINE BANKINGMany banks and credit unions allow you to access your account online and do things such as make transfers or pay bills. |
OPPORTUNITY COSTSThe loss of potential gain from other alternatives when one alternative is chosen. |
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. |
Entries starting with: P |
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PERSONAL INJURY PROTECTION (PIP) Covers medical bills for individuals injured in a collision. |
Entries starting with: R |
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REGISTERWhere you write down debit purchases and deposits. |
REVOLVING CREDITRevolving credit is a type of loan that does not have a fixed number of payments. |
Entries starting with: S |
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SAVINGS ACCOUNTAn interest-bearing deposit account held at a bank or other financial institution. |
SAVINGS PLANA plan for how to put money towards short, intermediate, and long-term goals. |
SECURED LOANA secured loan is a loan guaranteed by something of value (collateral). |
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. |
Entries starting with: T |
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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. |
TRANSUNION.COM |
Entries starting with: U |
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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. |
UNSECURED LOANAn unsecured loan is a loan that has no collateral securing the loan. |
Entries starting with: V |
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VARIABLE EXPENSESAn expense that can change. |
VARIABLE-RATE LOANA variable-rate loan is a loan where the APR can change when market indexes or other interest rates fluctuate. |
Entries starting with: W |
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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. |
WITHDRAWALThe process of taking money from your bank account. |