EPF Midterm Review

Emergency Fund

A banking account that you can access quickly to pay for unexpected expenses or emergencies

Zero-Based Budget

A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero

401K

A defined contribution plan that automatically takes out money from an employee's paycheck before income taxes and invests it in mutual funds for purposes of retirement savings

Cryptocurrencies

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Medicaid

A federal and state assistance program that pays for health care services for people who cannot afford them.

Social Security

A federal insurance program that provides benefits to retired people and those who are unemployed or disabled.

Medicare

A federal program of health insurance for persons 65 years of age and older

W-4

A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.

Grant

A financial award given by a government agency to a private individual or group in order to carry out a specific task

Salary

A fixed amount of money paid to an employee for each pay period.

Scholarship

A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements

European Union (EU)

A free trade zone encompassing 27 European countries

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

Monopoly

A market in which there are many buyers but only one seller.

Oligopoly

A market structure in which a few large firms dominate a market

Apprentice

A person who is learning a trade from a skilled employer, having agreed to work for a fixed period at low wages.

Budget

A plan for making and spending money

Business Cycle

Alternating periods of economic expansion and economic recession

Net Pay

Amount of income left after taxes and deductions have been taken out.

Gross Pay

Amount of salary or wages earned for a certain period of time before deductions are withheld.

Incentives

An action or reward that motivates one to act a certain way

Tax Return

An annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers

Command Economy

An economic system in which the government controls a country's economy.

Mixed Economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.

Traditional Economy

An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.

Market Equilibrium

Condition of price stability where the quantity demanded equals the quantity supplied

Opportunity Cost

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

Market Economy

Economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets

FAFSA

Free Application for Federal Student Aid; determines how much financial aid a student may receive.

GED

General equivalency diploma; certificate considered equivalent to a high school diploma, earned by passing a test

Complementary Goods

Goods that are commonly used with other goods

Substitutes

Goods used in place of one another

Roth IRA

Private retirement plan that taxes income before it is saved, but which does not tax interest on that income when funds are used upon retirement

403b

Retirement plan found in nonprofit organizations, such as churches, hospitals, and schools.

Trade-Off

The act of giving up one benefit in order to gain another, greater benefit

Balance of Trade

The difference between a country's total exports and total imports

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth

Microeconomics

The study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.

Economics

The study of how people seek to satisfy their needs and wants by making choices

Pension

A regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed during their working life.

W-2

A statement of an individual's annual wages and taxes provided by an employer that must be included with the employee's federal, state, and city income tax returns.

NAFTA

A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.

Trade School

A type of higher learning school that focuses on job skill training for specific career fields rather than academics in liberal arts

Traditional IRA

An individual retirement account that allows individuals to contribute pre-tax income to investments that grow tax deferred

Mutual Fund

An investment program funded by shareholders that trades in diversified holdings and is professionally managed.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

Bitcoin

The most popular and fastest-growing digital currency

Retirement

The period of one's life after leaving one's job and ceasing to work.

Specialization

The process wherein a company or individual decides to focus their labor on a specific type of production