Term
|
Definition
| 70% of income can be spent; 20% should be saved & 10% should be invested |
|
|
Term
|
Definition
| Financial accounts used to assist with daily cash management; these include chekcing and savings accounts, money market deposit accoutns, CD's and savings bonds |
|
|
Term
|
Definition
| An insured interest earning savings instrument with restricted access to funds |
|
|
Term
|
Definition
| Earning interest on interest |
|
|
Term
|
Definition
| An illustration representing the trade-offs between risk and return for a number of investments |
|
|
Term
|
Definition
| The interest rate will not change for the lifetime of the investment |
|
|
Term
|
Definition
|
|
Term
| Future value of money (FV) |
|
Definition
| The value of an asset projected to the end of a particular time period |
|
|
Term
|
Definition
| Percentage rate paid on the money saved, invested or borrowed expressed as an annual percentage rate |
|
|
Term
|
Definition
| The steady rise in the general level of prices; affects the future value of money |
|
|
Term
|
Definition
| Purchasing assests with the goal of increasing future income |
|
|
Term
|
Definition
| The speed and ease with which an asset can be converted into cash |
|
|
Term
| Money market deposit account |
|
Definition
| A government insured accoutn offered at most depository institutions; usually with a tiered interest rate |
|
|
Term
|
Definition
| Taking a portion of a paycheck for saving or investing before using any for spending |
|
|
Term
|
Definition
| The current value of an asset received in the future |
|
|
Term
|
Definition
| The original amount of money saved, invested or borrowed |
|
|
Term
|
Definition
| Annual return on an investment including appreciation and dividends or interest |
|
|
Term
|
Definition
| Uncertainty the yield on an investment will increase |
|
|
Term
|
Definition
| A formula for figuring the number of years it takes to double the principal using compound interest; found by dividing the interest rate the money will earn into the number 72 |
|
|
Term
|
Definition
| The portion of income not spent on consumption |
|
|
Term
|
Definition
| A discout bond purchased for 50% of the face value from the US government |
|
|
Term
|
Definition
| Interest earned on the principal only |
|
|
Term
|
Definition
| Income not subject to income tax until the person takes the money out of the investment |
|
|
Term
|
Definition
| Amount of interest earned depends on the account balance |
|
|
