Financial Concepts &Terminology By Mr. Paulk

Let’s take a look at some vocabulary and discuss the functionality of the term! By the end of this we should be able to increase our understanding of Financial Concepts!

Checking and Savings Accounts What is it? Currency is any form of money that is in public circulation An Account is a banking service that allows customers money to be handled and tracked. These include checking and savings. A Joint Account is an account that allows a customer to deposit or withdraw money and earn interest on the balance A bad check is a check written with Insufficient funds (not enough money). If some tries to cash the check it will “bounce "meaning not go through. A debit card is a card that uses money directly from your banks checking account A Savings Account is an account that allows a customer to deposit or withdraw money and earn interest on the balance. How is it related to personal finance(3 student answers to move on)?

ATM’S Deposit Slips and Withdrawal slips! What is it? An Automated Teller Machine (ATM) is a computer used by bank customers to manage their money to get cash, make deposits or transfer money. To withdrawal money is to take money out of an account. A deposit is to put money into your account How is it related to personal finance (3 student answers to move on)?

Loans, Loans, Loans! What is it? A Loan is an agreement between a borrower and a lender, where the borrower agrees to repay money with interest over time. A Co-Signer is a second person that signs a loan application but is also responsible for repaying the debt. The Principal amount of a loan is the total amount of money borrowed, loaned, or invested, not including interest or service charges. The Term of a loan is the period of time over which a loan is scheduled to be repaid. The interest is the amount of money paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. (How much it cost you to borrow money) How is it related to personal finance(3 student answers to move on)?

Credit What is it? Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future A Creditor is an individual or business that lends money or extends credit. A Debt is money, goods or services you owe to others. Opposite of Credit! A credit limit is the maximum dollar amount the lender is willing to make available to the borrower. A Credit Card allows you to borrow money but you must pay the money back! Your Credit History is a written record of a person's use of credit. It is normally represented by your FICO score (Credit Score). A late fee is charged by the state or city on the retail price of an item, collected by the retailer. How is it related to personal finance(3 student answers to move on)?

Income and Expenses What is it? A Budget is a monthly or yearly spending and savings plan developed by a person, family or business. A Fixed Expense is a cost that does not vary from month to month or week to week. A Variable Expense (Flexible Expense) is a cost that changes or you can control each month or week to week. Income is the amount of money you receive during a period of time for labor, services or sales. How is it related to personal finance(3 student answers to move on)?

Okay lets see if you paid attention?!?!?!?! Time to take your QUIZ!!!!!!!!