financial literacy glossary

A measure of how popular or necessary an item is and how many consumers want to buy it. A type of 529 plan that allows you to invest your education savings in various types of investments, including mutual funds. An open-ended loan that allows you to borrow money up to a certain limit and carry over an unpaid balance from month to month. Financial Aid and Financial Literacy Glossary Accrued Interest Interest that accumulates and is paid in installments at a later time (usually when the principal becomes due) rather than paid on a regular schedule from the time a loan is disbursed and interest begins. A degree usually awarded for at least three years of full-time academic work beyond a bachelor’s degree. Financial decisions you make now may have a big effect on your ability to purchase a car or house, get married, or even have a family. Inflation occurs when the prices of goods and services increase over time. These terms are used throughout the classroom activities and can help students better understand financial literacy concepts. Sitemap. An illegal act that occurs when people try to trick you out of your personal information and your money. Bitcoin is one of the earliest and most well-known cryptocurrencies. Learn more. It was revised in 2011 by a group of practitioners and researchers to promote a more dynamic conception of classification. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage. Glossary and Financial Literacy. Liabilities - A financial obligation or amount owed. The CEO of a company could be referred to as the honcho or "head honcho." Companies use it to make big decisions, such as whether they’ll lend you money. Credit report: A report that reflects your credit history. For example, the amount you pay for covered health care services before your insurance plan starts to pay is your deductible. | Numbers created by mathematical formulas that use key pieces of your credit history to calculate your score at a moment in time. This number results from the financial information you provide in your Free Application for Federal Student Aid (FAFSA) form. Financial Literacy Glossary (A-D) STUDY. A tax on the value of property you own at your death. A type of debt, similar to an IOU. Access the National Financial Educators Council financial literacy dictionary and activities that improve financial vocabulary - complimetnary. … The amount of money that is needed to pay for or buy something. Standard 3. Personal Financial Literacy Glossary of Commonly Used Terms Amortization. The practice of comparing prices, features, benefits, risks, and other characteristics of two or more similar products or services. Letters that look real but contain fake promises. A. A wage set by contract or by law as the lowest that may be paid to employees. This series will cover the basic financial glossary. The CEO of a company could be referred to as the honcho or "head honcho." Stands for "automated teller machine," a machine that lets bank customers perform basic transactions, such as deposits and withdrawals. A guide on understanding finances and becoming fiscally responsible. An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway. Businesses, on the other hand, must have management who understands financial stat… In the U.S. insurance market, coinsurance is the joint assumption of risk between the insurer and the insured. FINANCIAL LITERACY . Asset. What is the definition of financial literacy? It can cause you to spend more money than you can afford. A higher education institution that is primarily supported by private funds. Also called purchasing power, it is the amount of goods and services that can be purchased by a given unit of currency, taking into account the effect of inflation. A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Federal, state, and local taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Loan - a finance agreement where a person borrows money from a lender and pays it back in instalments (plus interest) within a specified period of time. Get insider access to our best financial tools and content. A financial plan allows you to set and attain short-term objectives (those within one year) and long-term goals based upon known and presumed financial and life events. Also: An advantage; something that is good. A plastic card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. A certificate is not a degree. To have good value for the amount of money you paid. Annual Percentage Rate (APR) total amount of what it costs you to use credit in a given year. For example, if you get a home loan, the bank's collateral is typically your house. A common warning sign is a letter asking you to send money or personal information now to receive something of value later. The unauthorized movement or disclosure of sensitive information to a party, usually outside the organization, that is not authorized to have or see the information. Also called “crypto,” it’s a popular type of virtual currency that uses cryptography, a mathematical encryption process, to enhance data protection and provide what’s called pseudonymity, in which individuals are identified by a public alphanumeric key or address. 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financial literacy glossary 2021