What is Banking?
cryptocurrency
A digital currency that uses codes to secure and verify transactions, and it is not regulated by any government or financial institution
bankruptcy
A legal process with serious consequences in which a person or business declares that they are unable to pay their debts and starts fresh financially
credit score
A number that reflects how likely you are to pay back borrowed money, which lenders use to determine whether or not to loan you money and the interest rate
gratuity
A percentage of the total bill for a service that is directly paid to hospitality workers, such as waiters and hairdressers, to show your appreciation for good service
consumer
A person who buys goods or services for their personal use
budget
A plan for saving and spending money
401k
A retirement savings account that some employers offer to help their employees save money for retirement, in which employees can contribute a portion of their paycheck
bonds
A type of investment in which you lend money to a company or government in exchange for regular interest payments and the return of your principal investment after a specific amount of time
borrower
An individual or organization that receives money from a lender with the expectation of paying the money back with interest
impulse purchase
Buying a good or service without thinking about its impact on your life or finances
deductible
The amount of money you must first pay for an expense before your insurance pays the remaining amount
depreciation
The decrease in value of a product over time
fraud
The illegal act of using lies and tricks to steal other people's personal and financial information
credit limit
The maximum amount of money that a lender will allow you to borrow on a credit card or other type of loan
comparison shopping
The process of looking at the price, advantages, and disadvantages of two or more similar products before making a purchase to find the best deal and save money
income
The total amount of money you earn from your job and other sources
identity theft
The use of your name, Social Security number, credit card number, or other personal information without your knowledge or permission
bank
a financial institution that keeps your money safe and can provide services like checking accounts, savings accounts, loans, and credit cards.
debit card
a plastic card that allows you to spend money directly from your checking account, which can be a convenient way to make purchases.
savings account
account in which you store money for an extended amount of time and gain interest.
direct deposit
allows many employers and institutions to electronically transfer money, such as paychecks or refunds, to your bank account.
checking account
an account with a bank or credit union that allows you to deposit and withdraw money.
emergency fund
an amount of money that is saved and set aside to use only during unexpected events such as the loss of a job.
automated teller machine (ATM)
bank-owned machines that allow you to deposit cash or checks, withdraw money, and check your account balance.
fees
charges that you have to pay to receive services.
overdraft
if you spend more money than you have in your bank account, your bank may charge you this fee.
assets
items that you own that have value, such as a house, car, stocks, bonds, or the amount of money you have.
withdrawal
when you need to remove money from your bank account.
checks
written documents directing your bank to pay a specific amount of money from your checking account to another person or business.