Rate of Return, Closed-End Credit, Insurance, Credit Report, CRA, Loan Payments, Bonds, Credit Cards, Savings and Checking Accounts, Investments
Checking Accounts
Bank accounts that provide an easy method for withdrawing and depositing money, typically used for day-to-day transactions.
Flood Insurance
Insurance coverage that protects against damage to a home caused by a flood.
Certificate of Deposit
A financial product that is used for a fixed period of time, typically with restricted access to funds, in exchange for a higher interest rate.
Bonds
A form of lending money to a company or government in exchange for periodic interest payments and the return of the principal amount at maturity.
Rental Contract
A legal agreement between a landlord and tenant that outlines the terms and conditions of renting a property. It is also known as a lease.
Refund Anticipation Loan
A loan that allows individuals to receive a portion of their anticipated tax refund in advance.
Credit Report
A report that includes information about an individual's credit history, such as missed mortgage payments, bankruptcies, and addresses.
Payday Loan
A short-term loan that provides immediate cash, typically with high interest rates and fees.
Money Market Account
A type of bank account that requires a minimum balance and offers tiered interest rates, typically higher than regular savings accounts.
Open-End Credit
A type of credit that allows individuals to borrow money up to a certain limit, with the option to borrow more as needed.
Closed-End Credit
A type of credit where the borrower repays a specified number of equal payments over a fixed period of time.
Bonds (Investment)
A type of investment where individuals lend money to a company or government in exchange for periodic interest payments and the return of the principal amount at maturity.
CRA
Abbreviation for Credit Reporting Agency, which is an organization that collects and maintains credit information on individuals.
Investment Philosophy
An individual's approach or strategy to investing, which is often influenced by factors such as their risk tolerance, financial goals, and time horizon.
Investments
Assets that are purchased with the intention of generating additional income, but also carry the risk of loss.
Savings Accounts
Bank accounts that hold money not spent on current consumption, allowing individuals to save and earn interest on their savings.
Free Credit Reports
Credit reports that individuals are entitled to receive once a year from Equifax, TransUnion, and Experian.
Liability Insurance
Insurance coverage that protects against financial loss resulting from injuries caused by a car accident for which the insured is deemed responsible.
Mutual Funds
Investment funds that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They are generally considered less risky than investing in individual stocks.
Saving Tools
Secure and liquid accounts that are used for managing savings, such as savings accounts, money market accounts, and certificates of deposit.
Payday Loans
Short-term loans that provide immediate cash but are not considered a great form of alternative credit due to their high interest rates and fees.
Credit
The ability to obtain goods, services, or money in exchange for a promise to pay in the future.
Borrowing Money
The act of obtaining funds or credit with the intention of repaying the lender in the future, often by spending future income.
Monthly Loan Payments
The amount of money that a borrower must pay towards a loan each month. It is recommended that monthly loan payments should be less than 10% of monthly net income.
Deductible (Insurance)
The amount of money that an individual must pay out of pocket before an insurance company will cover the remaining costs in the event of an accident or claim.
Money Market Account Features
The characteristics and benefits of a money market account, which is similar to a savings account but offers higher interest rates.
Savings Account Features
The characteristics and benefits of a savings account, such as the ability to store emergency funds and earn interest on the balance.
Depreciation
The decrease in value of an asset, such as a car, over time.
Rate of Return Formula
The formula to calculate the rate of return on an investment. It is calculated by subtracting the initial investment amount from the final sale amount, and then dividing that by the initial investment amount.
Maturity Date
The future date when the principal amount of a bond is repaid to the bondholder.
Appreciation
The increase in value of an asset, such as a house, over time.
Information in a Credit Report
The information contained in a credit report, including consumer information, public record information, credit account information, and inquiry information.
Foreclosure
The legal process of a lender taking possession of a property due to the borrower's failure to make mortgage payments.
Loan Duration
The length of time it takes to fully repay a loan. It is important to note that it is not always necessary to take the full duration to pay off a loan.
Minimum Loan Payments
The minimum amount of money that a borrower must pay towards a loan each month. However, paying only the minimum can result in paying much more for the item in the long run.
Principle
The original amount of money that is invested or saved.
Ownership of Shares
The ownership of a portion or percentage of a company's stock, representing a claim on the company's assets and earnings.
Interest Rates
The percentage of the loan amount that is charged as interest, often low or not offered for checking accounts.
Dividends
The portion of a company's profits that is distributed in cash to its stockholders.
Premium (Insurance)
The price that an individual pays for an insurance policy.
Capital Gains
The profits realized from selling an asset, such as stocks or real estate, for more than the original purchase price.
Rate of Return
The total return on an investment expressed as a percentage, taking into account both capital gains and dividends.