Term
| The daily routine of handling money to take care of an individual's or family's needs by keeping enough available for living expenses, emergencies, savings and investing while maximizing interest earnings. |
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| 70% of the money can be spent, 20% should be saved, and 10% should be invested |
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| An insured interest earning savings instrument with restricted access to funds. |
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Definition
| Certificate of Deposit (CD) |
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| A financial account used to assist with daily cash management including checking accounts, savings accounts, money market deposits, certificates of deposit, and savings bonds. |
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| A tool used to transfer funds deposited into the account to make a cash purchase. |
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| Earning interest on interest |
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| An illustration which represents the trade-offs between risk and return for a number of investments. |
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| The interest rate will not change for the lifetime of the investment. |
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| The value of an asset projected to the end of a particular time period. |
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| Percentage rate paid on the money saved or invested expresses as an annual percentage rate. |
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| Steady rise in the general level of prices. Occurs when the supply of money rises faster than the supply of goods and services available for purchase. |
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| The purchase of assets with the goal of increasing future income. |
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| The speed and ease with which an asset can be converted into cash. |
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| A government insured account offered at most depository institutions. |
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| Money Market Deposit Account |
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Term
| Time, number of payments or compounding periods. |
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Term
| Taking out a portion of a paycheck for savings or investing before using any of the check for spending. |
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| The amount paid for each pay period. PMT: enters the payment amount in annuity and loan calculations |
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| The current value of an asset received int eh future. |
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| The original amount of money invested or saved. |
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| Annual return on an investment including appreciation and dividends or interest. |
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| Uncertainty the yield on an investment will deviate from what is expected. |
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| A formula for figuring the number of years it takes to double the principal using compound interest. This is found by dividing the interest rate the money will earn into the number 72. |
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| The portion of current income not spent on consumption. |
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| An account to hold money not spent on consumption. |
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| A discount bond purchases for 50% of the face value from the US government. |
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| A strategy for putting a portion of money from current income aside, which will not be spent on consumption, to reach a specified goal. |
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| Interest earned on the principal (original) investment. |
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| Taxes will not be paid until a person takes the money out of the investment. |
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| Compulsory charges imposed by the federal government on its citizens and their property. |
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| The amount of interest earned depends on the account balance. |
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| A calculation which adjusts for the fact that dollars to be received or paid out in the future are not equivalent to those received or paid out today because of compounding interest. |
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