Economics Unit 9 Vocab.

savings account

A bank service in which the depositor puts his money in the bank for the purpose of drawing interest

debt

Money owed to a person or a business

monthly budget

Planned income and expenditures for a calendar month

servicing fee

charges such as loan fees and the interest the customer pays on the loan

minimum balance

the smallest amount allowed in an account without a financial penalty

affinity cards

transfers a portion of the annual fees or charges to the sponsoring organization of the card

memo/signature

your personal autograph attesting to the validity of the checking account; the memo tells of the purchase

down payment

A partial payment given in order to show intent of purchase

grace period

A time when there is no obligation to repay your loan

impulse buying

Making a purchase on the spur of the moment without careful planning

income

Money received as earnings from work or the selling of goods

middle-man

Money will not only go to the manufacturer, but also to the store that stocks and sells the profit

steward

One who manages money or the affairs of a household

field of membership

Range of eligibility for a credit union, such as teacher's credit union or bricklayer's credit union

expense

Something on which money is spent

educational loan

borrowing money from the bank for college tuition or other higher educational expenses

versatile

capable of doing many things at once; multi-faceted

federal student aid

government financial help; it may be in the form of a grant or a loan

sponsor

overseer who approves, condones and assists in formation and continuation of a credit union

direct deposit

paycheck electronically transferred into depositor's account

interest

percentage of the amount in the savings account which is a reward for the bank's use of the money

depositor

person who puts his money into a saving account at a bank

on-line information

phone system allows you to call in to a service center and find out your balance up to the minute

check date

tells the bank the length of time used in processing of the check as well as the day of purchase

annual return

the amount a savings account will earn on interest in the course of a calendar year

as-is

the car is purchased with no improvements to be added

bank balance

the current money available in the depositor's account

capitalized

the interest is added to the principal amount of your loan

processing a loan

the job of putting loan applicants into official consideration

ceiling

the limit in the amount given

payroll

the list of workers employed by a company and the total wages due them

checking account

type of bank account that uses written orders to direct payment from a bank based upon the funds available from a depositors account

annual fees

yearly membership or other participation fees ranging from $25 to $50 for most cards

tithe

10% return back to the Lord from income you received; derived from O.T. passages such as Deuteronomy 2:11

name-brand

A famous-name product that may be more expensive due solely to its high recognition

annual percentage rate

A measure of the yearly cost of credit

bank savings book

A small journal which is a continually updated account of the money available in one's savings account

budget

An itemized account of the possible income and expenditures over a given period of time

factory direct

Another name for manufacturer-to-consumer selling

financial aid

Assistance for the potential college student

Federal Pell Grant

Assistance from the government which is not to be repaid

solicitation

Enticing a person to purchase a product or service

EFC

Expected Family Contribution - the assumed amount that the family will contribute to the student's college tuition

transaction fees

Other types of costs; might include a fee when you use the card to obtain a cash advance

credit limit

The amount of spending that the credit card company will allow you

consignment shop

The store that sells an individual's good in an agreement where both parties split the profit

gross income

Total money earned, excluding all deductions

frivolous

Trivial, not requiring serious thought; considered silly

wholesale club

Type of business that eliminates the retail part of the transaction

installment payment

Your IRA money is meted out in periodic payments rather than one large sum

loan officer

a bank official who will oversee the approval or denial of a loan

no haggle dealership

a car market where the price sticker is the final price, there is no discussion over a final price

taxation

a charge due the government for the money you are earning

penalty

a charge is added against you if you withdraw your money before the agreed upon date

automated teller machine

a computerized device that provides readily accessible cash to those who are eligible

time deposit

a deposit that gives a certain amount of interest in a specified amount of time

option

a feature that may or may not be included in the overall package of the car

loan application

a form making a request for a stated amount of money, filled out prior to meeting with a loan officer

warranty

a guarantee that is legally binding to hold the dealership to what it has promised

cooperative

a joint economic activity that is owned and operated by those who use its services

unsubsidized

a loan that will charge you interest from the start

subsidized

a loan where you will not be charged any interest before you begin repayment

Knights Templar

a medieval group that guarded valuables, negotiated loans, and transported money

interest

a percentage of the amount loaned which is a charge for the use of the money

individual retirement account

a savings-for-retirement plan that defers taxes until the due date

interest rate

a set percentage of the deposited amount that will be given to the depositor

cashless society

a society where consumers rely solely on credit cards, debit cards, electronic accounts and checks

credit history

a year-long record of how well a person pays his bills and is financially responsible

process

actions which take the check from the merchant to the accounting centers of the bank

surcharges

added fees for various services

free period

allows you to avoid the finance charge by paying your current balance in full before "due date" shown

pre-qualification interview

an initial meeting to determine the ability of repayment of a loan; checking the credit history and financial stability of the loan applicant

asset

any property, such as land or stock, that may cover a person's liabilities

tax-free rollover

avoiding taxes by having the distribution go from a qualified plan to an IRA

interchange fee

charges that your bank must pay if you use an ATM that is "foreign," meaning not owned by your bank

password

coded word or number used to provide security to the cardholder

Better Business Bureau

consumer "watchdog"; assists the buyer by reporting unfair business practices

passbook savings account

depositor puts money in the bank to draw interest and uses a "passbook" to keep track of its activity

contribution

each deposit to the IRA is known as a contribution

add-ons

extras that are above the standard components of a car

default

failure to fulfill a financial obligation

lump-sum

having your IRA money given to you in one large amount instead of in increments

tax-deferred

no taxes are due until the required time; the payments are held off

non-sufficient funds

notice sent to the customer of his deposits are not enough to cover the costs of the check he has written

deferment

official permission to postpone the payments of a loan

credit union

provides loans to its members at lower rates of interest than would be available at other institutions

tax-deductible contribution

putting your money into your IRA avoids taxes

federal-charted

registered with the United States

state-chartered

registered with the state in which the credit union resides

standard

regular features that do not cost the car-buyer above the listed cost

monthly statement

regular mailed account of your bank transactions and financial activity

collateral

something given to guarantee repayment of a loan

certificate of deposit

statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest

overextending

stretching one's credit beyond the financial guidelines

A-type credit

strong credit history that gives the bank reason to approve the loan

adjusted balance

subtracting credits received during present billing period from balance owed the previous billing period

payee

the person who will receive the check as payment

inquiry

the program to access and find out about your personal account balances

rollover

when the IRA gets money from another qualified plan and usually at an employee's retirement

overdraw

writing a check for more money than is available in your account