Personal Finance and Financial Literacy - Middle School

Do the words savings and income interest you? Then you'll profit from learning these personal finance terms. Review credit, stocks and bonds, loans, bankruptcy, and much more. This list is bound to be a good investment.
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Full list of words from this list:

words only definitions & notes
  1. 401-k plan
    a retirement savings plan that is funded by employee contributions and (often) matching contributions from the employer; contributions are made from your salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA; funds can be transferred if you change employers and you can (to some extent) manage the investments yourself
  2. annuity
    income from capital investment paid regularly
  3. appreciation
    an increase in price or value
  4. asset
    a useful or valuable quality
  5. ATM
    an unattended machine (outside some banks) that dispenses money when a personal coded card is used
  6. balance
    the difference between the credit and debit of an account
  7. balanced budget
    a budget is balanced when current expenditures are equal to receipts
  8. bankruptcy
    a legal process for a corporation declared to be insolvent
  9. bear market
    a prolong period of falling prices for stock indices
  10. beneficiary
    the recipient of funds or other advantages
  11. benefit
    financial assistance in time of need
  12. bond
    a certificate of debt issued by a government or corporation
  13. bonus
    extra pay or reward given to employees for good performance
  14. bounce
    refuse to accept and send back
  15. brokerage
    the business of a broker
  16. budget
    a summary of intended expenditures
  17. bull market
    a market characterized by rising prices for securities
  18. cash flow
    the excess of cash revenues over cash outlays in a give period of time (not including non-cash expenses)
  19. cashier's check
    a check issued by the officer of a bank on the banks own account (not that of a private person)
  20. certified check
    a check containing certification that the person who issued the check has sufficient funds on deposit to cover payment
  21. checking account
    a bank account against which the depositor can draw checks that are payable on demand
  22. check register
    a register of checks issued (usually in numeric order)
  23. commercial bank
    a financial institution that accepts demand deposits and makes loans and provides other services for the public
  24. commission
    a fee for services rendered
  25. comparison-shop
    compare prices for a given item
  26. compound interest
    money earned on an original investment and accumulated gains
  27. contract
    a binding agreement that is enforceable by law
  28. cosign
    sign and endorse (another person's signature), as for a loan
  29. counteroffer
    an offer made by someone who has rejected a prior offer
  30. coupon
    a certificate that can be redeemed for value as needed
  31. credit
    an estimate of ability to fulfill financial commitments
  32. credit card
    a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
  33. creditor
    a person to whom money is owed by a debtor
  34. credit union
    a cooperative depository financial institution whose members can obtain loans from their combined savings
  35. debit card
    a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account
  36. debtor
    a person who owes a creditor
  37. deductible
    an amount that can be subtracted, as for tax purposes
  38. deduction
    a decrease in the gross amount on which a tax is calculated
  39. dependent
    a person who relies on another person for support
  40. deposit
    payment given as a guarantee that an obligation will be met
  41. depreciation
    decrease in value of an asset due to obsolescence or use
  42. diversification
    the condition of being varied
  43. dividend
    earnings of a corporation distributed to its shareholders
  44. endorse
    sign as evidence of legal transfer
  45. equity
    the ownership interest of shareholders in a corporation
  46. exemption
    deduction allowed to a taxpayer because of his or her status
  47. expense
    a financial burden; money that must be paid out
  48. financial institution
    an institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets
  49. foreclosure
    proceedings initiated to repossess the collateral for a loan
  50. garnish
    take a debtor's wages on legal orders, as for child support
  51. grant
    any monetary aid
  52. health insurance
    insurance against loss due to ill health
  53. impulse-buy
    buy on impulse without proper reflection
  54. income
    the amount of money one makes over a period of time
  55. individual retirement account
    a retirement plan that allows you to contribute a limited yearly sum toward your retirement; taxes on the interest earned in the account are deferred
  56. inflation
    a general and progressive increase in prices
  57. insolvent
    unable to meet or discharge financial obligations
  58. insurance
    promise of reimbursement in the case of loss
  59. interest
    a fixed charge for borrowing money
  60. interest rate
    the percentage of a sum of money charged for its use
  61. investment
    laying out money or capital in an enterprise
  62. itemize
    specify individually
  63. lender
    a person or institution that loans money
  64. liability
    an obligation to pay money to another party
  65. life insurance
    insurance paid to named beneficiaries when the insured person dies
  66. liquidation
    termination of a business operation by using its assets to discharge its liabilities
  67. liquidity
    being in cash or easily convertible to cash
  68. loan
    the temporary provision of money (usually at interest)
  69. market value
    the price at which buyers and sellers trade the item in an open marketplace
  70. money order
    a written order of payment issued by a post office or bank
  71. mortgage
    a conveyance of property as security for repaying a loan
  72. mutual fund
    the pooled money that is invested in assets
  73. negotiable
    legally transferable to the ownership of another
  74. net income
    the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)
  75. notary public
    someone legally empowered to witness signatures and certify documents
  76. obligation
    the state of being bound to do or pay something
  77. opportunity cost
    the benefits lost by choosing one option over another
  78. overdraft
    a draft in excess of the credit balance
  79. overtime
    work done in addition to regular working hours
  80. pension plan
    a plan for setting aside money to be spent after retirement
  81. personal check
    a check drawn against funds deposited in your personal checking account
  82. personal identification number
    a number you choose and use to gain access to various accounts
  83. policy
    written contract or certificate of insurance
  84. portfolio
    a list of financial assets held by a person or institution
  85. premium
    payment for insurance
  86. profit
    excess of revenues over outlays in a given period of time
  87. profit sharing
    a system in which employees receive a share of the net profits of the business
  88. property tax
    a capital tax on property imposed by municipalities
  89. rebate
    a refund of some fraction of the amount paid
  90. safe-deposit box
    a fireproof metal strongbox for storing valuables
  91. salary
    fixed payment for services
  92. sales tax
    a tax based on the cost of the item purchased and collected directly from the buyer
  93. savings
    a fund of money put aside as a reserve
  94. savings account
    a bank account that accumulates interest
  95. scholarship
    financial aid provided to a student on the basis of merit
  96. service charge
    a percentage of a bill added in payment for service
  97. shareholder
    someone who owns stock in a corporation
  98. simple interest
    a basic fee for borrowing money over time
  99. Social Security
    social welfare program in the U.S.
  100. solvent
    capable of meeting financial obligations
  101. stock
    capital raised by a corporation through the issue of shares
  102. stockholder
    someone who holds shares of stock in a corporation
  103. stock index
    index based on a statistical compilation of the share prices of a number of representative stocks
  104. stock option
    the right to buy or sell a stock at a specified price within a stated period
  105. stop payment
    a depositor's order to a bank to refuse payment on a check
  106. tax credit
    a direct reduction in tax liability
  107. tax deduction
    a reduction in the gross amount on which a tax is calculated
  108. tradeoff
    an exchange that occurs as a compromise
  109. traveler's check
    a letter of credit issued by a bank or express company that is payable on presentation to any correspondent of the issuer
  110. Treasury bill
    a short-term obligation that is not interest-bearing
  111. Treasury bond
    a debt instrument with maturities of 10 years or longer
  112. Treasury note
    securities with maturities of 1 to 10 years
  113. trust
    something held by one party for the benefit of another
  114. wage
    payment for work
  115. warranty
    written assurance that a product or service will be provided
  116. will
    a document declaring wishes regarding disposal of property
  117. withdrawal
    the act of taking out money or other capital
  118. work-study program
    an educational plan in which students alternate between paid employment and formal study
Created on Wed Feb 01 14:25:08 EST 2017 (updated Mon Apr 03 10:05:19 EDT 2017)

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