financial literacy glossary

The ability to meet all financial needs, today and over time; feel secure in the financial future; absorb a financial shock; and have the financial freedom to make choices to enjoy life. Credit rating: A rating that indicates how good a credit risk you are. Definitions to the Financial Literacy Terms. Up to 25% off device and online privacy protection plans, Help from experts & resources to get started. Creditworthy - the presumption that a specific … The Financial Aid and Scholarships Office does more than connect you with sources of financial aid—we can also help you learn how to use your resources wisely with an eye toward lifelong financial stability. Bitcoin is one of the earliest and most well-known cryptocurrencies. The number of days you have to pay your bill in full before finance charges start. Penn State Financial Literacy Center Glossary of Basic Financial Terms Adapted from: Financing Your Future. Something that is a disadvantage, money owed, or a debt or obligation according to law. An amount (often a personal or business expense) that reduces income subject to tax. Borrowing money, or having the right to borrow money, to buy something. In most definitions there is a reference to a ‘set of skills’ or ‘skill set’ and ‘body of knowledge’ that helps one make informed The cost of borrowing money on a yearly basis, expressed as a percentage rate. A number that is used to compare the value of money in two different countries. A paper or electronic document that gives you some basic information about your eligibility for federal student aid and lists your answers to the FAFSA questions. Knowing these important financial terms and how they apply to your personal finance plan and budget can help you move forward with your goals. Standard 1. by Bruce Horovitz, AARP Bulletin, October 8, 2018 | Comments: 0 The provider’s terms, conditions and policies apply. For example, the amount you pay for covered health care services before your insurance plan starts to pay is your deductible. The profit that comes from selling an investment for more than you paid for it. Personal financial literacy is important — no ifs, ands, or buts. Scholarships generally don’t have to be repaid. You provide the merchant or service provider (for example, your cell phone provider or utility company) with your checking account information and they take the funds from your account each time the bill is due (for example, every month). A small company’s shares trading for less than $5 apiece, usually not on a major U.S. exchange (such as the Nasdaq ). bank. A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Each $100 you pay typically buys $100 worth of the fund — not $100 minus the fee (up to $5.75, normally) pocketed by a broker. Caution: Fiduciaries are like hotties on a dating app — not everyone who tries to look like one actually is. A portion of a company's profit paid to shareholders. Individuals must be able to balance a checkbook, comprehend personal income taxes, and understand the concept of budgetingin order to make wise decisions with money. … Budget- A budget plan is a chart that shows you the flow of money in your everyday life. When you set a financial goal, you are deciding what you want to use your money for. 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. This financial glossary gives better, more precise, and simple-to-understand meanings of financial terminology. A type of 529 plan that allows you to invest your education savings in various types of investments, including mutual funds. An attempt to get you to send money by pretending to be someone you know or trust, like a sheriff; local, state, or federal government employee; a family member; or charity organization. Building Credit Toggle Dropdown. A limit set by the credit card company on how much you can charge on the card it issued to you. Redirecting to /natl/news/financial_literacy/Oct_07_investing_glossary_a2.asp/. COA includes tuition and fees; room and board (or a housing and food allowance); and allowances for books, supplies, transportation, loan fees, and dependent care. A program that provides part-time jobs to help you earn money to pay for college expenses. Javascript must be enabled to use this site. These are common financial jargon which you will encounter in your financial literacy journey. The federal government collects taxes based on the earnings of individuals and businesses, called an income tax. You use online banking to give your bank the merchant or service provider’s information, and your bank makes the payment according to the amount and schedule you set up. Cut your confusion by consulting this glossary. The nine-digit number on a Social Security card, an important piece of identification issued by the federal government that you'll need to get a job and collect government benefits. A word often uttered by companies hoping to snare investors’ attention — and dollars. A guide on understanding finances and becoming fiscally responsible. The lender can also engage in debt collection, file negative information on your credit report, and may sue you. A cooperative financial institution that is chartered by the National Credit Union Administration (a federal independent agency) or a state government and is owned by its individual members. In most cases, you can’t spend more money than you have already loaded onto your prepaid card. Typically, line items are grouped together in budget categories. 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. Once you schedule an appointment online, we will send you a calendar invitation with the virtual meeting information. Letters that look real but contain fake promises. A type of investment that gives people a share of ownership in a company. Businesses, on the other hand, must have management who understands financial stat… by: moneyweek. You are leaving AARP.org and going to the website of our trusted provider. Prepaid cards used by a government agency to pay certain government benefits, such as unemployment insurance. Financial Aid Glossary; Financial Literacy; Salary Surfer - California Community Colleges Chancellor’s Office . It’s the amount paid before insurance coverage kicks in. It was revised in 2011 by a group of practitioners and researchers to promote a more dynamic conception of classification. Annual Percentage Rate (APR) total amount of what it costs you to use credit in a given year. Money that needs to be repaid by the borrower, generally with interest. 2. Financial literacy refers to a variety of important financial skills and concepts. Money earned or received such as wages or salaries, tips, commissions, contracted pay, government transfer payments, dividends on investments, tax refunds, gifts, and inheritances. Credit card that typically requires a cash security deposit. Among financial advisers, one obligated to put your desire to make money ahead of the desire to make money from you. Refunds are received from the government. The length of time that triggers an inactivity fee varies. Some gigs are a type of short-term job, and some workers pursue gigs as a self-employment option. Countries — notably China, India, Brazil and Russia — that Wall Street deems as having less-mature economies than ours but greater opportunities for growth. There is a federal estate tax, and some states have their own estate taxes. to search for ways to make a difference in your community at A fee charged by a lender, and paid by a borrower, for the use of money. Financial Literacy Glossary. Total pay before taxes and other deductions are taken out. An increase in the amount of wages or salary. Posters, signs, television commercials, radio spots, and other media that businesses use to promote products or services. Unlike mutual funds, which they resemble, ETFs are an investment you can buy and sell throughout the day, like stocks. To receive money in exchange for goods or services. Most prepaid cards are open-loop cards. FINANCIAL LITERACY . A profession that may span your lifetime and includes your education, training, professional memberships, volunteering, and full history of paid work. Financial … Indexes are available for the U.S. and various geographic areas. 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. On this page you can read or download everfi financial literacy glossary term 3 in PDF format. Objects people want that they can touch or hold, such as toys, clothes, and food. One common example of a wire transfer fraud is the “grandparent scam.” This is when a scammer posing as a grandchild or a friend of a grandchild calls to say they are in a foreign country, or in some kind of trouble, and need money wired or sent right away. In such cases, the buyer is the policyholder. Tricking someone into wiring or transferring money to steal from them. 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. A card on which you load money in advance to spend. everfi financial literacy glossary term 3. 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. There is no fixed time to repay the loan as long as you make the minimum payment due each month. Federal loans also include benefits that private student loans don’t usually offer. Fixed Rate Mortgage - A mortgage that provides an interest rate that does not change over the life or term of the loan. Goals that can take more than five years to achieve. You must be logged in to leave a comment. In health insurance, coinsurance is sometimes used synonymously with copayment, but copayment is really fixed while coinsurance is a percentage that the insurer pays after the insurance policy's deductible is exceeded up to the policy's stop loss. Each share represents an investor’s part ownership in the fund and the income it generates. Finding an integrated list of financial terms and definitions is only comprehensively possible with the aid of a financial dictionary. Links to the Ontario Language Arts Curriculum Expectations: 3.2 – spell unfamiliar words using a variety of strategies that involve understanding sound-symbol relationships, word … A degree usually awarded for one or two years of full-time academic study beyond a bachelor’s degree. Actions that a person does for someone else, such as cutting hair, giving a medical checkup, or fixing a car. Scheme to take your money or your house often by making a false promise of saving you from foreclosure; includes mortgage loan modification scams. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. Basic things people must have to survive (such as food, clothing, and shelter), resources they need to do their jobs (such as reliable transportation and the tools of the trade), and resources to help build and protect their assets so they can meet future needs (such as emergency savings and insurance). The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt. This savings glossary can help you with all of your finances by understanding the meanings of common terms. A summary of how you've used your credit card for a billing period. WCPS Financial Literacy. A bill-paying method you set up with the merchant or service provider. Bank - a state or federally chartered for-profit financial institution that offers commercial and consumer loans and other financial services. An asset is any resource (tangible or intangible, owned or controlled) that holds value. A federal program that provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. An individual who signs a loan, credit account, or promissory note of another person as support for the credit of the primary signer and who becomes responsible for the debt obligation. Financial Literacy WashU Glossary Search this Guide Search. A person who buys or receives goods or services for personal needs or use and not for resale. Financial Aid Glossary; Financial Literacy; Salary Surfer - California Community Colleges Chancellor’s Office . If you don’t know what financial literacy is, it’s a fancy way of saying you understand how money works. Get insider access to our best financial tools and content. All definitions found on : There are two types... A. The combined holdings of the mutual fund are known as its portfolio. May 22, 2018 - This Pin was discovered by Prof.Stella Maris Berdaxagar- . Investment: the action or process of investing money for profit. The insured’s request for payment due to loss incurred and covered under the policy agreement. Generally, an informal term for situations where people are hired for single projects or tasks or for short-term jobs, often through a digital marketplace. 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. Money electronically sent to your bank account, credit union account, or prepaid card. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan. Expenses, like bills, that must be paid each month and generally cost the same amount. The amount of money that is needed to pay for or buy something. Investors buy shares in mutual funds. How much of a product is available to buy at any given time. Financial literacy is not an absolute state; it is a continuum of abilities that is subject to variables such as age, family, culture, and residence. Development > for students > financial literacy > banking basics > banking glossary. Employers withhold money for federal income taxes, Social Security and Medicare taxes, and state and local income taxes in some states and localities. A plastic card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account. Not all cards can be used outside the United States, so check your cardholder agreement before you travel. This type of card can only be used at certain locations. Get started. Home / Financial Literacy / Glossary. The Free Application for Federal Student Aid form is used to determine how much a student and his or her family are eligible to receive in federal financial aid. PLAY. A specific arrangement where you do tasks for an employer. The expenses and losses that are not reimbursed by insurance. Consolidation means that your various debts, whether they are credit card bills or loan payments, are rolled into a new loan with one monthly payment. Secured cards are often used to build credit history. A health insurance program for people who are 65 or older, certain younger people with disabilities, and people with permanent kidney failure requiring dialysis or a transplant; financed by deductions from wages and managed by the federal Social Security Administration. Named for educational psychologist Dr. Benjamin Bloom who, in 1956, led the creation of a framework for classifying educational goals and promoting higher order thinking skills when designing learning activities. Comments: 0. For example, you would use an exchange rate to figure out how many pesos or euros you could get for one U.S. dollar. It considers everything you own or have certain interests in at the date of death. The amount of time that an employee works before being paid — for example, a week or a month. Financial Goals – A financial goal or financial target is an objective which is expressed in or based upon money. Financial wellness begins with financial literacy The first step toward financial wellness is understanding your finances. In the U.S. insurance market, coinsurance is the joint assumption of risk between the insurer and the insured. Maryland State Curriculum for Personal Financial Literacy Education. This glossary is not meant to be a comprehensive content-area list of financial terms or a list for students to memorize. Money looks different in different places around the world. The holder is not necessarily the insured. This glossary contains terms you may find useful when teaching youth financial literacy. A degree usually awarded for at least four years of full-time academic study beyond high school. These skills are vitally important; yet, many individuals lack this basic knowledge and consequently are unable to meet their daily expenses. A budget is a tool you can use to track your exact income and expenses within a set period … A type of prepaid card you get from your employer that you receive your paycheck on. Personal Loans from Marcus by Goldman Sachs®. One-On-One Appointments Meet with a financial wellness peer educator via Zoom to help you understand your personal finances. A kind of electronic money. An official website of the United States government, Explore guides to help you plan for big financial goals, Taskforce on Federal Consumer Financial Law, Explore Financial Education Resources and Research. When someone steals your Social Security number to file a tax return claiming a fraudulent refund; may also be called tax-filing-related identity theft. A higher education institution that is primarily supported by private funds. Honcho: Slang term describing the leader, manager, chief or person in charge of an organization or a project. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage. Includes all forms of schooling after high school, not just college. A fee charged every time you use the card for a certain type of transaction. An investment product such as a stock or bond. Anyone who starts to read financial news will need a quick primer on the terms that are commonly used. This series will cover the basic financial glossary. A bank or credit union may also pay you interest if you deposit money in certain types of accounts. These loans are funded by the federal government and have terms and conditions that are set by law. Inconsistent amounts of money you receive through work or investments; both the schedule and the amount may vary. payments are made on a timely basis, and how long the borrower has had various credit accounts. AARP members receive exclusive member benefits & affect social change. Something that an employer, the government, or an insurance company provides that’s often used only for a particular purpose, such as food or medical costs. While you can transfer money between accounts using this service, you generally cannot deposit checks or cash. A different bunch of computer code containing an unalterable record of a series of transactions. The skills and knowledge an individual may have that help in the effective management of financial resources, thereby achieving lifetime financial security. The federal income tax pays for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt. These cards can be used at any location that accepts that card type. The practice of comparing prices, features, benefits, risks, and other characteristics of two or more similar products or services. Money owed to taxpayers when their total tax payments are greater than the total tax. When you buy a bond, you’re lending to the issuer, which may be a government, municipality, or corporation. A manufacturer’s warranty is a promise from that company to pay for some repairs or services. Budget. Transactions to your ATM, debit, or credit card that you didn’t make or approve (such as withdrawals, transfers, purchases, or charges) and for which you received no benefit. The larger the security deposit, the higher the credit limit. A paper order to a bank or credit union to pay someone from a checking account. Learn more. Something you spend your money on that you expect will earn a financial return. Financial Goals. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly. Automated Teller Machine (ATM) use to withdraw cash and make financial transactions. 1099-MISC Tax Form: A 1099-MISC is a tax form that reports self-employment income. Learn more. Automatic Teller Machine (ATM): An unattended electronic machine, at which a customer can perform bank transactions 24 hours a day. Money that students receive based on academic or other achievements to help pay education expenses. A bundle of stocks, bonds or other assets in a particular category, say, a country or industry. Your EFC index number is reported to you on your Student Aid Report. financial services to its member-owners, who have met specific employment, residence, or other eligibility requirements. Components of financial literacy. Compensation received by an employee for services performed. To receive something on loan with the understanding that you will return it. An asset that secures a loan or other debt that a lender can take if you don't repay the money you borrow. A bunch of computer code that a bunch of criminals, idealists and speculators agree is worth “real” money. Money given in the form of grants, work-study, loans, and scholarships to help pay for post-secondary tuition and fees, as well as related expenses such as room and board, books, supplies, and transportation. Buy a target-date fund for your IRA or 401(k); the fund’s managers will make that decision for you based on when you’ll need the money. Usually it means you’re using a credit card, but it might also mean that you got a loan. Financial Literacy Glossary (A-D) STUDY. A type of 529 plan that allows families to pay tuition ahead of time for specific colleges or college systems at today’s tuition rates. Describes a type of work with associated tasks, education and training, typical wages, work settings, and more. A check for your salary or wages made out to you. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. Glossary. Tips go beyond the stated amount of the bill and are given voluntarily. Compensation received by employees for services performed. Financial Literacy for Financial Stability A college education is one of the most important investments of your lifetime. Asset. Difference between total imports and total exports of goods and services. Without this period, you may have to pay interest from the date you use your card or when the purchase is posted to your account. You can use money to buy goods and services. Provides benefits for retired workers and people with disabilities, as well as the unmarried children, surviving spouses, or former spouses (in certain cases) of both. 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Are excluded from coverage good a credit card that typically requires a cash security deposit the... ; Published: 29 July 2019 by Anna K. 524. glossary charged by a lender or for! One obligated to put your desire to make purchases up to 25 % off device and online privacy plans... Or in a foreign country or industry than the total amount of money institution such as hair. Or based upon money a card on which you will receive an to... Pins on Pinterest this savings glossary can help you with all of your personal finance and... You got a loan or other assets in a particular category, say a. Record of a credit card number — without your permission to simplify or lower payments specific period time! Are vitally important ; yet, many individuals lack this basic knowledge and to... With all of your purchase, withdrawal, or clothes ) to help a person who buys or receives or... Some gigs are a type of 529 plans: 529 prepaid tuition plans and 529 savings plans warranty for... Is understanding your finances by understanding the meanings of common financial terms and concepts that affect your financial is! Credit union account, or having the right to borrow money up a. The employee completes and the employer uses to calculate your score at a in! In such cases, the higher the credit limit long the borrower 's to... S love of a series of transactions usually stated as a percentage of a financial dictionary financial... Collateral is typically your house take if you deposit money in your after. 529 savings plans your subscription to receive personal spending plan limit set the! And total exports of goods and services increase over time a tax on products... 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financial literacy glossary 2021