personal finance

variable expenses

Costs that vary in amount and type, depending on the choices you make.

checking account

A bank account from which payments can be ordered by a depositor

debit card

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

identity theft

A crime that involves someone pretending to be another person in order to steal money or obtain benefits

Credit Union

A nonprofit financial institution that is owned by its members and organized for their benefit.

budget

A plan for making and spending money

bank statement

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

retail bank

A retail bank deals directly with individual customers and small businesses. It doesn't have big corporations or other banks as customers.

nonsufficient funds

A situation that occurs when a check is returned to a depositor because the writer of the check did not have a bank available balance equal to or greater than the amount of the check.

money market deposit account

An account at a depository institution that usually has minimum balance requirements and tiered interest rates

ATM

Automated Teller Machine

discretionary income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

fixed expenses

Expenses that do not change from month to month, such as auto insurance or rent.

recurring expenses

Expenses that occur on a regular or monthly basis such as housing payments, loan payments, regular savings or investments, etc.

Emergency Fund

Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation

overdraft

Occurs when money is withdrawn from a bank account and the available balance goes below zero

savings account

a bank account that earns interest

budget deficit

a shortfall of tax revenue from government spending

safe deposit box

a small, secure storage compartment that you can rent in a bank, usually for $100 a year or less

fee schedule signature card

allows the bank to compare the signatures on future transactions to make sure it's really you

APY (annual percentage yield)

amount of interest that a $100 deposit would earn, after compounding, for one year

FDIC (Federal Deposit Insurance Corporation)

an agency developed by the federal government to regulate banking and and investment activivties

budget surplus

an excess of tax revenue over government spending

PIN

personal identification number

FTC (Federal Trade Commission)

prevents the unfair, false, or deceptive advertising of consumer products and services

Liquidity

the ease with which an asset can be converted into cash

nominal interest rate

the interest rate as usually reported without a correction for the effects of inflation

real interest rate

the interest rate corrected for the effects of inflation

fraud

wrongful or criminal deception intended to result in financial or personal gain