Flashcards in Personal Finance EOC reveiw Deck (61):
Standard of Living
the degree of wealth and material comfort available to a person or community.
Potential Earning Power
The amount of money that is anticipated to be received over a period of time, either as payment for work, goods, or services, or as profit on capital
a business that does work for a customer, and occasionally provides goods, but is not involved in manufacturing.
plan that allows staff to choose from a variety of benefits plan that best suits their needs.
the nation's retirement program
a method where employee transfers part of his or her current income stream toward retirement income
a general increase in prices and fall in the purchasing value of money.
the total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event.
tax levied by a government directly on income, especially an annual tax on personal income.
the amount of money subtracted from the gross pay earned for mandatory systematic taxes, employee sponsored medical benefits, and or retirement benefits
a deduction allowed by law to reduce the amount of income that would otherwise be taxed.
an accounting procedure where the IRS examines your individual or business financial records to ensure you filed your tax return accurately.
interact with other people to exchange information and develop contacts
largest full service institutions operated under state and federal laws
a line of credit that banks offer to their customers to cover their overdrafts.
the availability of liquid assets to a market or company.
money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
a useful or valuable thing, person, or quality.
the state of being responsible for something, especially by law.
an estimate of income and expenditure for a set period of time.
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
non-profit cooperative institution owned by their members
a process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own [accounting] records at a particular point in time.
the amount for which something can be sold on a given market.
paycheck money goes straight into designated account
the amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.
A type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured.
a payment made by a beneficiary (especially for health services) in addition to that made by an insurer.
a type of insurance in which the insured pays a share of the payment made against a claim.
the is the nation's health care policy for elderly and disabled
a person who derives advantage from something, especially a trust, will, or life insurance policy.
a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" of years.
Disability income insurance
a program managed by the Social Security Administration that insures a worker in case of a mishap.
a form of property insurance that provides coverage for a policyholder's belongings and liability within a rental property.
Annual percentage rate
the annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan.
what we give up to get something else
an initial payment made when something is bought on credit.
A debt that someone incurs for the purpose of purchasing a good or service.
a person or company to whom money is owed.
provide funding for
any fee representing the cost of credit, or the cost of borrowing.
is an entity's income minus cost of goods sold, expenses and taxes for an accounting period.
something pledged as security for repayment of a loan, to be forfeited in the event of a default.
an estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings.
the state of being completely lacking in a particular quality or value.
An account that is used to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense.
Certificate of Deposit
insured interest restricted access (CD); interest rate changes depending on time length of seven days to eight years; early withdrawls equals PENTALTY
Money market account
government insured account; usual minimum deposit of $1,000; account with high interest rate of return
Rate of return
The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.
make up (a composite whole)
Rule of 72
a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return
the conveying to an employee of unconditional entitlement to a share in a pension fund.
Individual retirement plan
An individual retirement account (IRA) that allows individuals to direct pretax income, up to specified annual limits, toward investments that can grow tax-deferred
a fixed sum of money paid to someone each year
a range of investments held by a person or organization
the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.
the full amount of an industrial product.
an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
The purchase or acquisition of a controlling interest in a foreign business by means other than the outright purchase of shares.
a sum of money paid by a company to its shareholders out of its profits (or reserves).