Week 2 Flashcards
Fixed expense
Rent/house payment/car payment/ food, utilities…the things that you know you must pay every month
Cash flow statement
Use this when creating a budget, it helps you record your income and expenses
Emergency fund
Set aside money in case of an emergency
Values
Vary from those of others and influence your financial decisions
Inflation
The general rise in prices
Liquidity
How easy it is to get your cash
Ease of turning assets into cash, a reg. savings account has high l, while others have a lower liquidity
Interest
is the income earned by the lending of a sum of money, earning money- your money gains interest while sitting in the bank
Reconciling
Going through your checkbook and bank statements making sure they match up
Income
Any money coming in, could be fixed or variable
Discretionary income
Money left over from your income spending on savings and fixed expenses. Pleasure spending
Certificate of deposit (cd)
A certificate issued by a bank to a person depositing money for a specified length of time.
Money market accounts
Kind of savings account that is a financial account that pays interest based on current interest rates in the money markets
Savings bonds
Ways of saving money in the long run. You buy a $100 bond for $50 and overtime the govt bond will mature
Compounding interest
What we did yesterday. Way of calculating interest done annually, semiannually, quarterly, or even monthly.
NSF fee
Non-sufficient funds is a term used in the banking industry to indicate that a demand for payment cannot be honored because insufficient funds are available in the account
Variable expense
Expenses that were for pleasure or even unexpected, car repairs, medical expenses, entertainment, dates, unexpected emergencies
Credit union
Non for profit organization with members, career focused, like a teachers credit union.-has no accounts and each member partially owns it
Know differences between short, medium, and long term goals.
Short- up to five years
Medium- 5-10 years
Long- 10 or more
Know difference between a debit and credit card.
Debit- checking account that immediately withdrawals money.
Credit- borrows money from the credit card company and is agreeing to pay it back
Know difference between a checking and savings account.
Checking- usually doesn’t make interest, write checks and keep a checkbook
Saving- gains interest, put $in using a deposit slip and take it out with a withdrawal slip.
Know difference between a w2 form and a W4 form…
W4- withholding, the more withholdings, e less the govt takes
W2- wage and tax statement
What regulates the banking industry
State and federal organizations- FDIC
What improves your savings power?
Don’t touch the money, no withdrawals, and you have a choice of your savings
Know how to help prevent your bank info from being stolen.
Use secure sites, don’t use hotspots or free wifi to send personal info.
Have registration and PIN numbers
Convenient money transfers
Bill pay feature
