1-4 Personal Finance
Fixed costs
An expense that does not vary from one time period to another
APR
Abbreviation of annual percentage rate, the interest rate applied annually to a loan or credit card balance
APY
Abbreviation of annual percentage yield, the rate earned in the course of one whole year, taking compounding into account, expressed as a percentage
Cash reserves
Cash and other liquid assets such as demand deposits or treasury bills that an individual possesses
Savings
Money set aside for future use
Refinancing
To obtain a new loan for something on different terms, often involving the paying off of an existing high-interest loan by means of a new, lower-interest one
Budget
To plan the allocation, expenditure, or use of money
Withdraw
To take money out of an account
Cost of living
The amount of money spent on food, clothing, accommodation, and other basic necessities
Income potential
The amount of money that is anticipated to be received over a period of time, either as payment for work, goods, or services, or as a profit on capital