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| Mortgage that has fluctuating principal and interest payments (similar to a variable interest rate loan). A.R.M.s often begin as fixed mortgages and, after a certain number of years, shift into adjustable rates. |
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| A type of insurance used by vehicle owners to cover costs associated with car accidents. |
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| A chart that documents show how much money an individual earns and spends. |
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| The relationship between income and expenses in a budget. For example, if you spend more money than you have coming in you have negative cash flow. |
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| A savings vehicle offered through banks with a set maturity date. For example if you put $5000 into a five-year CD, you cannot withdraw the money until the five-year maturity date without facing penalties. However, interest rates are usually higher in CDs than traditional savings accounts, making then desirable for longer-term savings. |
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| Money collected by some city governments to be used for city public services, such as sidewalks and city water systems. |
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| The ability to u purchase goods or services with the promise to pay for it at a later time. |
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| A number ranging from 300 to 850 representing a person's credit history. A credit score is calculated based on 10% credit in use, 10% new credit, 15% credit history, 30% amounts owed and 35% payment history. |
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| Demonstrating trust in repayment of borrowed money. |
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| A plastic card that allows an individual to make a purchase on credit. |
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| A plastic card that allows an individual to make purchase using funds from his or her bank account(s). |
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| Money withheld from a paycheck for tax or savings purposes. |
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| Money spent on items and bills. |
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| Money collected by the federal government to be used for a variety of national public services such as the military, national parks and monuments. |
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| Income and expenses that are the same each month. |
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| Interest payment that remains constant for the duration of the loan. For example, if you have a fixed interest rate loan at 5%, you will pay the consistent amount of 5% on the money you borrowed until it is fully paid back. |
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| A mortgage where the principal and interest payments remain constant throughout the entire duration of the loan. |
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| Income and expenses that vary each month. |
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| Total pay before deductions. |
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| A type of insurance that minimizes financial risk related to medical expenses. Many employers offer health insurance as part of a benifits package to employees. |
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| Protects a home by providing coverage in the event of damage or loss to the house itself or personal belongings inside due to theft, fire, accidents, etc. |
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| Money earned through employment. |
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Individual Retirement Account |
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Definition
| An investment tool for individuals to save for retirement. There are two types of IRAs for individuals: Traditional and Roth. |
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| Additional fee paid on a monthly basis to the lender. |
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| Person or institution that provides you with the loan (e.g., bank, family member, etc.). |
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| Amount of money you borrow, which must be paid back to the lender within a given period of time. |
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Definition
| A type of insurance that protects against the loss of income as a result of an individual's death. |
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| Money collected by the federal government to provide health insurance benefits in retirement, and to certain individuals with disabilities or serious illnesses. |
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Definition
| Loan used to purchase a home, condo, or piece of property. It includes principal and interest payments. Principal payments go toward reducing the cost of the original loan, and interest payments cover the additional fee incurred for borrowing the principal amount. |
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| An investment vehicle that pools investor money to purchase securities like bonds and stocks. |
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| Total pay after deductions, commonly referred to as take-home pay. |
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| A check given to an employee for earned income. |
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| A statement that accompanies a paycheck highlighting earned income and deductions. |
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| The range of dates an employee works. |
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| Amount of money you pay on a monthly basis toward paying off your loan. |
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| A type of insurance used to protect lenders if a borrowed puts less than 20% down on a home purchase. |
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| A traditional savings account where money is deposited directly from gross pay. A direct-to-savings deduction is optional, but many people find it ensures a set portion of each paycheck is set aside for savings. |
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Definition
| A secure bank account that provides modest interest rates. |
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Definition
| Money collected by the federal government to provide financial benefits needed in retirement and for the disabled. |
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Definition
| Money collected by some state governments to be used for state public services, such as education and state road maintenance. |
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Variable Interest Rate Loan |
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Definition
| Interest payment that varies based on market interest rates. Depending on the type of loan (e.g., student loan, mortgage, etc.), the interest rate is tied to a specific index, which fluctuates up and down on a regular basis. |
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Definition
| A year-end earnings statement prepared by employers showing total earnings and deductions withheld from an employee's salary for one year. Employers provide this statement to employees who then use it to complete their tax returns. |
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Term
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Definition
| A withholding tax form completed by a new employee that tells the employer the amountof taxes to withhold from an individual's paycheck. An employee provides this statement to an employer. It is not used to prepare a tax return. |
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Definition
| A type of retirement savings account where money is deposited directly by an employer and is not federally taxed until withdrawn in retirement. Individuals can choose how much to invest in a 401(k) and, as a benifit, some employers offer to match the amount of money employees contribute. |
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Definition
Costs associated with buying or selling stock. |
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Term
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Definition
Commission fee when buying stock. |
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Definition
Commission fee when selling stock. |
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Term
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Definition
Ongoing costs associated with owning a particular stock. |
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The ratio of fund expenses to fund assets. |
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Typically a percent of investor's assets. |
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Term
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Definition
Investments with a fund manager frequently trading in the fund to maximize returns. |
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Definition
Investments that automatically follow trading rules such as mirror a sector of the market |
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Term
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Definition
Costs associated with buying or selling stock. |
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Definition
Commission fee when buying stock. |
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Definition
Commission fee when selling stock. |
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Definition
Ongoing costs associated with owning a particular stock. |
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Definition
Typically a % of investor’s assets. |
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Definition
The ratio of fund expenses to fund assets. |
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Definition
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Term
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Definition
Investments with a fund manager frequently trading in the fund to
maximize returns. |
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Term
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Definition
Investments that automatically follow trading rules such as mirror a sector of the market. |
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Term
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Definition
Contract between an insurance company and an individual. |
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Term
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Definition
Amount of money an individual pays to have insurance coverage. |
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Term
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Definition
Formal request for payment based on an insurance policy. |
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Term
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Definition
Amount of money the individual pays for the unexpected event before insurance or warranty will pay any money. |
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Term
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Definition
A number assigned to a person that indicates to lenders their
capacity to repay a loan. |
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Definition
A detailed report of an individual's credit history prepared by a credit bureau (CRA). |
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Term
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Definition
Evaluates the risks of a person to determine loan approval. |
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Credit Reporting Agency (CRA) |
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Definition
Maintain historical information pertaining to an individuals credit experience. Also known as credit bureaus. |
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Definition
Fraudulently acquiring/using another person’s identifying information for financial gain. |
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Definition
Software that is intended to damage or disable computers and computer systems. |
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Term
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Definition
Activity of defrauding an online account holder of financial information by posing as a legitimate company. |
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Term
Secure Sockets Layer [SSL] |
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Definition
The standard security technology for establishing an encrypted link between a web server and a browser. |
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Definition
Strategy used by identity thieves to retrieve sensitive information
about another that was discarded in the trash. |
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Term
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Definition
Form for collecting data for an individual employee used to determine tax with holdings. |
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Term
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Definition
Reports an employee’s annual wages and the amount of taxes withheld from his or her paycheck. |
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Term
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Definition
Income tax return for single and joint filers with no dependents and simple tax circumstances. |
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Term
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Definition
Standard form that individuals use to file their federal income taxes. |
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Term
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Definition
Income tax return that allows for more complexity than the 1040EZ but less than the longer 1040 |
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Term
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Definition
A tax form that reports the year-end summary of all nonemployee compensation. |
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Term
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Definition
Amount of money borrowed. |
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Term
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Definition
Money charged by the lender for the amount borrowed, expressed as an annual percentage. |
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Term
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Definition
Amount of time allotted for repayment of a loan. |
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Term
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Definition
Credit backed by collateral. |
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Term
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Definition
Credit not backed by collateral. |
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Term
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Definition
Asset assigned as security for a loan. |
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Term
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Definition
Legal claim to the property of borrower to secure the payment of a debt or the satisfaction of an obligation. |
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Term
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Definition
This is an income tax deduction for interest paid on a qualified student loan. |
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Term
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Definition
Social security and Medicare taxes imposed on employers and employees. |
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Term
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Definition
In some circumstances, this is an income tax deduction on a home loan. |
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Term
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Definition
Form issued to independent contractors to report various types of incomes. |
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Definition
Tax on sales of certain goods and services. |
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Term
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Definition
An income range taxed at a set tax rate. |
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Term
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Definition
Progressive tax collected by the IRS on the annual earnings of individuals and other entities. |
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Term
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Definition
Amount of money a taxpayer can subtract from the amount of tax they owe to the gov. |
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Term
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Definition
Reduction of taxable income that lowers tha overall tax liability. |
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Term
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Definition
Occurs when an individual or business entity willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability. |
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Term
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Definition
Periodic advance payment of taxes which are based upon the amount of income that is earned each quarter. |
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Term
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Definition
Types or amounts of income not subject to federal income tax. |
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Term
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Definition
The average rate of tax that is paid on all income calculated by dividing total tax liability by total income subject to tax. |
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Term
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Definition
A tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. |
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Term
Short Term Capital Gains Tax |
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Definition
A capital gain realized by the sale or exchange of a capital asset that has been held for exactly one year or less. |
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Term
Long Term Capital Gains Tax |
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Definition
A capital gain from a qualifying investment owned for longer than 12 months and then sold. |
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Term
Forms of a taxable income |
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Definition
Wages, salaries, commissions, fees, tips, and many fringe benefits (Employee Compensation) |
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Definition
Form for the self-employed to report how much money was made or lost in the business. |
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Definition
Tips the employer assigned in addition to the tips the employee reported receiving for the year. |
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Definition
Cash, check, and debit and credit tips received. |
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Definition
A levy on property that the owner is required to pay. |
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