1. Money received for work performed; may include salary, wages, tips, professional fees, commissions, etc.

2. Earned income

3. A purposeful course of action or purpose in life that generally provides income

4. Career

5. The health, education, experience, training, skills and values of people. Also known as human resources

6. Human capital investment

7. Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest, and dividends

8. Income

9. A piece of work usually done on order at an agreed-upon rate
A piece of work usually done on order at an agreed-upon rate. Also a paid position of regular employment.

10. Job

11. Legal allowances that reduce the amount of income taxes subtracted from your gross income

12. Exemptions

13. Anything subtracted from your gross income

14. Deductions

15. Wages or salary before deductions for taxes and other purposes

16. Gross income

17. Commonly called “take home pay”; it is your income after all deductions and exemptions

18. Net income

19. A federal government program that provides retirement, survivor’s and disability benefits, funded by a tax on income, which appears on workers’ pay stubs as a deduction labeled FICA (Federal Insurance Contributions Act, the enabling legislation)

20. Social security

21. The belief that people should be taxed according to their ability to pay, regardless of the benefits they receive. The U.S. individual income tax is based on this principle.

22. Ability to pay

23. The belief that people should be taxed according to the benefits they receive from the good or service the tax supports. The gasoline tax is an example.

24. Benefits-received principle

25. One who enjoys the benefits of a good or service without paying for it

26. Free rider

27. The quality and quantity of goods and services available to people, and the way these goods and services are distributed within a country.

28. Standard of living

29. A system that relies on individual citizens to report their income freely and voluntarily, calculate their tax liability correctly, and file a tax return on time, according to the rules established by the Internal Revenue Service

30. Voluntary compliance

31. An electronic machine that bank customers and credit union members can use to withdraw cash and make other financial transactions

32. ATM (automatic teller machine)

33. The deposit of wages or other income directly into a customer’s bank account

34. Automatic deposit and payment

35. A state or federally chartered, for-profit business owned by stockholders that provides savings accounts, checking accounts and other financial services to its customers

36. Bank

37. An institution that cashes checks immediately for a fee

38. Check cashing services

39. A bank or credit union account that allows withdrawals by writing a check

40. Checking account

41. A plastic card authorizing the delivery of goods and services in exchange for future payment with interest

42. Credit card

43. A state or federally chartered, not-for-profit financial cooperative that provides financial services to its member-owners who have met specific requirements

44. Credit union

45. A plastic card used to deduct a purchase amount directly from your checking account; also called a check card

46. Debit card

47. The different kinds of services provided by financial institutions such as banks, credit unions, insurance companies, and other similar businesses

48. Financial services

49. Any business providing financial services

50. Financial institution

51. A company that guarantees compensation for specific forms of loss, damage, injury, or death

52. Insurance company

53. A business that participates in buying and selling stocks, corporate bonds and government bonds

54. Investment bank

55. The process of moving money from one account to another account

56. Money transfer

57. A company that makes loans for the purchase of a house or other real estate

58. Mortgage company

59. The process allowing customers to make financial transactions on a secure web site operated by their financial institution; also called Internet banking

60. Online banking

61. A description of what happens when a withdrawal (checks, ATM, etc
A description of what happens when a withdrawal (checks, ATM, etc.) is greater than the amount of money in a checking account

62. Overdraft

63. A checking account feature that provides an automatic loan from their financial institution to cover overdrafts

64. Overdraft protection

65. A protected location in a secure bank vault where individuals can store valuables for a small fee

66. Safety deposit box

67. An interest-bearing account at a financial institution

68. Savings account

69. Individuals and companies who buy and sell stocks for investors

70. Stock brokerage

71. A written order direction a bank or credit union to pay a person or business a specific sum of money

72. Check

73. The process of comparing personal bank account records to the bank’s records of that account balance in order to uncover any possible discrepancies

74. Reconcile

75. The first set of numbers on the check that are read by high speed check-processing machines to move your check from place to place

76. Check routing numbers

77. A record of all of the transactions on your account during the past month

78. Bank statement

79. Purchasing securities such as stocks, bonds, and mutual funds with the goal of increasing wealth over time, but with the risk of loss. Setting aside money for future income, benefit, or profit to meet long-term goals, using savings to earn a financial return

80. Investing

81. The quality of an asset that permits it to be converted quickly into cash without loss of value. For example, a checking account is more liquid than real estate

82. Liquidity

83. The value of the second-best alternative that a person gives up when making one choice instead of another

84. Opportunity cost

85. A measure of the likelihood of loss or profit on an investment’s rate of return

86. Risk

87. The process of setting income aside for future spending
The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals, and funds for investing

88. Saving

89. Money set aside for a future use that is held in easily accessed accounts, such as savings accounts and certificates of deposit (CDs)

90. Savings

91. Interest earned not only on the principal but also on the interest already earned

92. Compound interest

93. The original amount of money deposited or invested

94. principal

95. The length of time, in years, it takes an amount of money saved to double when it receives compound interest

96. Rule of 72

97. Interest calculated periodically on the loan principal or investment principal only, not on previously earned interest

98. Simple interest

99. A certificate issued by a bank to a person depositing money in an account for a specified period of time (often six months, one year, or two years); a penalty is charged for early withdrawal

100. Certificates of deposit

101. A certificate representing the purchaser’s agreement to lend money to a business on the promise that the debit will be paid, with interest, at a specific time

102. Corporate bonds

103. A fund restricted by law to investing in the short-term money market; provides low risk and low returns, but they maintain their investment value

104. Money market mutual funds

105. An investment tool that pools the money of many shareholders and invests it in a diversified portfolio of securities, such as stocks, bonds, and money market assets

106. Mutual funds

107. How fast money in savings account or investment grows

108. Rate of return

109. A measure of the likelihood of loss or profit the uncertainty of an investment’s rate of return

110. Risk

111. A document representing a loan of more than one year to the U. S
A document representing a loan of more than one year to the U.S. government, to be repaid, with interest on a specified date

112. Savings bonds

113. Investing in a variety of stocks, bonds, money market accounts, etc
Investing in a variety of stocks, bonds, money market accounts, etc., in order to spread the risk

114. Diversification

115. A group of investments involving ownership of assets

116. Equities

117. A rise in the general or average price level of all the goods and services produced in an economy

118. Inflation

119. A measure of the likelihood of loss or profit the uncertainty of an investment’s rate of return

120. Risk tolerance

121. A contract between an individual and an insurance company where the individual makes a series of payments that are invested by the company and repaid to the individual at a later date, generally during retirement

122. Annuity

123. A retirement plan that allows employees in private companies to make contributions of pre-tax dollars to a company pool that is then invested in stocks, bonds, or money markets

124. 401(k)

125. An account in which an individual may set aside earned income in a tax-deferred savings plan for his/her retirement

126. IRA

127. A federal system of old-age, survivors’, disability, and hospital care (Medicare) insurance which requires employers to withhold (or transfer) wages from employee’s paychecks and deposit that money in designated accounts

128. Social security

129. An agreement to provide goods, services, or money in exchange for future payments with interest by a specific date or according to a specific schedule; the use of someone else’s money for a fee

130. Credit

131. Something of value (often a house or a car) pledged by a borrower as security for a loan

132. Collateral

133. Payment for the use of someone else’s money; usually expressed as an annual rate in terms of a percent of the principal

134. Interest

135. A type of contract between the borrower and the lender explaining the requirements of fulfilling the loan

136. Loan agreement

137. Credit with collateral (i.e., a house or a car) for the lender

138. Secured credit

139. An establishment that collects and distributes credit history information of individuals and businesses

140. Credit bureau

141. A record of borrowing and repayments

142. Credit history

143. A measure of creditworthiness based on an analysis of the consumer’s financial history, often computed as a numerical score, using the FICO or other scoring system to analyze the consumer’s credit

144. Credit score/rating

145. A consumer line of credit that can be used up to a certain limit or paid down at any time; example – credit cards

146. Revolving credit

147. A federal agency that enforces consumer protection

148. Federal Trade Commission

149. Using a person’s name or personal information without the person’s permission to steal money or get other benefit

150. Identity theft

151. A person who owns property and rents it to another

152. Landlord

153. A written contract specifying the terms for the use of an asset and the legal responsibilities of both parties to the agreement, such as property owner and tenant

154. Lease

155. A person who pays rent; the legal name for a renter

156. Tenant

157. Costs paid when buying a house or real estate

158. Closing costs

159. The difference between how much a house is worth and how much is owed on it

160. Equity

161. A written request submitted to your insurance carrier to cover a loss

162. Claim

163. The dollar amount or percentage of a loss that is not insured, as specified in an insurance policy

164. Deductible

165. The fee paid for insurance protection

166. Premium

167. The percentage of the costs of medical services paid by the patient

168. Coinsurance

169. An amount of money that the member or insured pays directly to a provider at the time services are rendered

170. Copayment

171. Taking risks with personal finances or personal assets

172. Gambling

173. Telling or forecasting about something in advance of its occurrence by means of special knowledge or inference

174. Predictability

175. The chance or likelihood that something will happen

176. Probability

177. A person or company with insufficient assets to cover their debt

178. Bankrupt

179. A state of being legally released from the obligation to repay some or all debt in exchange for the forced loss of certain assets. A court’s determination of this remains in a consumer’s credit record for 10 years

180. Bankruptcy

181. A person or company to whom money is owed

182. Creditor

183. A single loan that replaces the debt owed by multiple loans, often with a lower monthly payment and a longer repayment period

184. Debt consolidation loan

185. A loan secured by a primary residence or second home at the amount where the fair market value exceeds the over the debt owed on the property

186. Home equity loan

187. To totally release you from all debt included in your bankruptcy petition

188. Chapter 7

189. Debt adjustment; allows you to file a repayment plan for your bills

190. Chapter 13

191. The act of giving to charitable organization or to those in need

192. Charitable giving

193. A tool used to choose among alternatives involves weighing the costs of a product or service against the benefit is will provide

194. Cost/benefit analysis, risk/reward relationship

195. A non-cash contribution to a charitable organization which can be given a cash value

196. Gifts in-kind

197. An expense that a taxpayer can subtract from taxable income; examples home mortgage interest and charitable giving

198. Tax deduction