T/Government and Economics - Unit 9: Budget and Finance

savings account

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

bank savings book

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

federal student aid

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

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.

on-line information

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

consignment shop

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

annual percentage rate

A measure of the yearly cost of credit.

down payment

A partial payment given in order to show intent of purchase.

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.

impulse buying

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

debt

Money owed to a person or a business.

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 product.

non-sufficient funds

Notice sent to the customer if 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.

steward

One who manages money or the affairs of a household.

tax deductible contribution

Putting your money into your IRA avoids taxes.

standard

Regular features that do not cost the car-buyer above the listed cost.

expense

Something on which money is spent.

adjusted balance

Subtracting credits received during present billing period from balance owed the previous billing period.

check date

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

tithe

10 percent return back to the Lord from income you received; derived from O.T. passages such as Deuteronomy 12:11.

grace period

A time when there is no obligation to repay your loan.

process

Actions which take the check from the merchant to the accounting centers of the bank.

free period

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

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.

Federal Pell Grant

Assistance from the government which is not to be repaid.

tax-free rollover

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

Better Business Bureau

Consumer watchdog; assists the buyer by reporting unfair business practices.

contribution

Each deposit to the IRA is known as a contribution.

solicitation

Enticing a person to purchase a product or service.

add-ons

Extras that are above the standard components of a car.

default

Failure to fulfill a financial obligation.

monthly budget

Planned income and expenditures for a calendar month.

credit limit

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

Expected Family Contribution

The assumed amount that the family will contribute to the student's college tuition.

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.

payee

The person who will receive the check as payment.

minimum balance

The smallest amount allowed in an account without a financial penalty.

gross income

Total money earned, before deductions are made.

affinity cards

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

frivolous

Trivial, not requiring serious thought; considered silly.

wholesale club

Type of business that eliminates the retail part of the transaction.

overdraw

Writing a check for more money than is available in your account.

checking account

Written orders that direct payment from a bank based upon the funds available from a depositor's account.

annual fees

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

installment payment

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

memo/signature

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

no haggle dealership

A car market where the price sticker is the final sale 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.

name-brand

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

option

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

warranty

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

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.

cashless society

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

financial aid

Financial assistance for the potential college student.

transaction fees

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

rollover

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