Savings Flashcards
(29 cards)
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
Minimum Balance
A certain amount of money that must be kept in an account as required by that particular financial institution
Monetary Inflation
Inflation caused by growth in the economy’s money supply
Money Market Savings Account
A type of savings account that may allow debit card and check writing privileges
National Credit Union Administration (NCUA)
The U.S. administration insuring deposits in U.S.credit unions against credit union failure up to $250,000 per individual depositor
Online Savings Account
A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch
Pay Yourself First
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases
Principal
Original amount of money saved or invested, separate from interest or earnings
Purchasing Power
The number of goods and services that money can buy. It can weaken in time due to inflation.
Roth IRA
An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year
