financial literacy glossary

For example, the amount you pay for covered health care services before your insurance plan starts to pay is your deductible. This fee is also called a currency conversion fee. Looking for a personal finance dictionary that covers essetial financial literacy terms? Penn State Financial Literacy Center Glossary of Basic Financial Terms Adapted from: Financing Your Future. Usually it means you’re using a credit card, but it might also mean that you got a loan. Sadly, its real-money value swings widely, making it impractical except for criminals, idealists and speculators. DVD. Tips go beyond the stated amount of the bill and are given voluntarily. Financially sound enough to justify the extension of credit. The CEO of a company could be referred to as the honcho or "head honcho." Lenders consider these loans to be more risky than secured loans, so they may charge a higher rate of interest for them. Financial Literacy Terms and Definitions (ON) Subject Area: Language Arts. Taxes on property, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business inventories. Financial literacy is the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security. To have good value for the amount of money you paid. Use our glossary to understand terms related to financial Superannuation - money set aside for retirement, that must be paid into a complying superannuation fund. A money order can be used instead of a check. A person who buys or receives goods or services for personal needs or use and not for resale. How much of a product is available to buy at any given time. 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. Inflation occurs when the prices of goods and services increase over time. Unlike mutual funds, which they resemble, ETFs are an investment you can buy and sell throughout the day, like stocks. Coinsurance in insurance, is the splitting or spreading of risk among multiple parties. Standard 5. Describes a type of work with associated tasks, education and training, typical wages, work settings, and more. A plastic card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account. A budget is a tool you can use to track your exact income and expenses within a set period … The issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal — also known as the bond’s face value or par value — when the bond "matures," or comes due after a set period. The practice or arrangement in which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. Posters, signs, television commercials, radio spots, and other media that businesses use to promote products or... B. A debit card is linked to your checking account. The amount of money that is needed to pay for or buy something. This glossary is not meant to be a comprehensive content-area list of financial terms or a list for students to memorize. Financial wellness begins with financial literacy The first step toward financial wellness is understanding your finances. Income people receive even if they don’t work for pay. Annual Fee. Financial … For example, you would use an exchange rate to figure out how many pesos or euros you could get for one U.S. dollar. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage. To make sure that somebody or something isn’t harmed, injured, damaged, or lost. The minimum dollar amount that must be paid each month on a loan, line of credit, or other debt. Maryland State Curriculum for Personal Financial Literacy Education. Not sure of the answer? A warranty is for a specific period of time, usually a few years. ADR: … In such cases, the buyer is the policyholder. A bunch of computer code that a bunch of criminals, idealists and speculators agree is worth “real” money. Financial literacy is the education or at least basic understanding of different financial areas including managing personal finance, or topics concerning money, trading and investing. 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. To receive money in exchange for goods or services. A degree usually awarded for at least four years of full-time academic study beyond high school. Like a 401(k) or IRA retirement plan, your account could go up or down depending on market performance. These skills are vitally important; yet, many individuals lack this basic knowledge and consequently are unable to meet their daily expenses. 529 College Savings Plan - An education savings plan operated by a state or educational institution. 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. Payment of all or part of a debt before it comes due. An interest-bearing savings security issued by the U.S. government for a set amount of money. You can buy a money order to pay a business or other party. An organization or person that lends money with the expectation that it will be repaid, generally with interest. A higher education institution that is primarily supported by private funds. In most cases, you can’t spend more money than you have already loaded onto your prepaid card. A fee you may be charged if you check your prepaid card balance at an ATM or if you call customer service to ask about your balance. A summary of how you've used your credit card for a billing period. A program that provides part-time jobs to help you earn money to pay for college expenses. A fee charged every time you use the card for a certain type of transaction. A wage set by contract or by law as the lowest that may be paid to employees. To commit money to earn a financial return; the strategic purchase or sale of assets to produce income or capital gains. The number of days you have to pay your bill in full before finance charges start. # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z. Savings tool with fixed maturity date and fixed interest rate. An investment product such as a stock or bond. 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. Federal loans also include benefits that private student loans don’t usually offer. On this page you can read or download everfi financial literacy glossary term 3 in PDF format. A fee your prepaid card provider may charge to replace your card if it is lost, stolen, or damaged. The federal income tax pays for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt. Financial literacy and awareness refer to a person’s orientation towards the needs and advantages of savings, investment, and financial planning, as well as their knowledge of various financial products, basic numeracy skills, and other money management tasks, in order to make sound financial decisions and have good financial health (Widyastuti et al., 2016). Glossary and Financial Literacy. A small company’s shares trading for less than $5 apiece, usually not on a major U.S. exchange (such as the Nasdaq ). It also includes miscellaneous and personal expenses. Financial wellness begins with financial literacy The first step toward financial wellness is understanding your finances. This concept is applicable to both individuals and organizations. A measure of the ability and ease with which you can access and use your money. Not all states and localities have income taxes. But a debt consolidation loan does not erase your debt. For instance, life insurance policies might be bought by employers of key employees, or a husband may buy and be the holder of a life insurance policy on his wife. Among financial advisers, one obligated to put your desire to make money ahead of the desire to make money from you. You will be asked to register or log in. While a prepaid card might look like a debit or credit card, there are differences. 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. A tax on products imported from foreign countries. A percentage of a sum borrowed that is charged by a lender or merchant for letting you use its money. Definitions to the Financial Literacy Terms. And, more importantly, you know how to make money work for you. Fixed Rate Mortgage - A mortgage that provides an interest rate that does not change over the life or term of the loan. Home Toggle Dropdown. Money earned or received such as wages or salaries, tips, commissions, contracted pay, government transfer payments, dividends on investments, tax refunds, gifts, and inheritances. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. 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. A loan that does not use property as collateral (such as most types of credit cards). 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. Typically, line items are grouped together in budget categories. To do something helpful for other people without getting paid to do it. This can be thought of as “fishing for confidential information”. Goals that can take more than five years to achieve. This type of card can only be used at certain locations. Setting something, like money, aside to use in the future. These terms are used throughout the classroom activities and can help students better understand financial literacy concepts. Financial Literacy Glossary. If you don't see any interesting for you, use our search form on bottom ↓ . Financial Literacy. Online bill paying may or may not also be offered on a bank’s or credit union’s mobile application. The amount that credit card companies charge for the use of a credit card. A common warning sign is a letter asking you to send money or personal information now to receive something of value later. The total amount it will cost you to go to school — usually stated as a yearly figure. Annual Percentage Rate (APR). The individual or firm that acquires and wants protection from the risk and generally in whose name an insurance policy is written. Standard 1. related to AARP volunteering. Not all cards can be used outside the United States, so check your cardholder agreement before you travel. Generally, states use one of two methods to determine income tax: the graduated income tax or the flat rate income tax. 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. A fee charged by a lender, and paid by a borrower, for the use of money. Standard 6. 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. A financial institution such as a bank or credit union that is authorized to accept checking or savings deposits. All definitions found on : bank. Be sure to check out iGrad’s COVID-19 Hub to get answers, tips, and advice for staying financially well during the pandemic.. iGrad. Loans from from private organizations, such as banks and credit unions, which set their own terms and conditions. Through the help of the Junior Achievement Communications Committee members, we have put together a dictionary of common financial literacy terms that many people do not know the defintion of. Money that is made in a business after all the costs and expenses are paid. A degree usually awarded for one or two years of full-time academic study beyond a bachelor’s degree. Can include things like children’s allowances, stock dividends paid by corporations, and financial gifts. Financial Literacy Glossary . Not all prepaid cards charge inactivity fees. This relates to personal economic satisfaction. Expenses that change in amount from month to month. Glossary. Your EFC index number is reported to you on your Student Aid Report. again. A profession that may span your lifetime and includes your education, training, professional memberships, volunteering, and full history of paid work. The most famous is a digital ledger recording all bitcoin transfers. A higher education institution whose programs and activities are operated by publicly elected or appointed school officials and which is supported by public funds. A degree usually awarded for at least two years of full-time academic study beyond high school. A set amount of money you receive at the same time each week or month. An asset that secures a loan or other debt that a lender can take if you don't repay the money you borrow. Glossary. To give something (like money, food, or clothes) to help a person or organization. Financial Literacy WashU Glossary Search this Guide Search. Something, such as an outcome, you wish to achieve or accomplish in a specific amount of time. The catch: Such markets’ infrastructure is shaky, and stocks tend to dive as aggressively as they soar. This article is an attempt to create a glossary of financial terms, which is both compact as well as comprehensive. Difference between total imports and total exports of goods and services. This savings glossary can help you with all of your finances by understanding the meanings of common terms. PLAY. Amount of money you bring home in your paycheck after taxes and other deductions are taken out; also called take-home pay. Inconsistent amounts of money you receive through work or investments; both the schedule and the amount may vary. Financial Aid Glossary; Financial Literacy; Salary Surfer - California Community Colleges Chancellor’s Office . This includes all the income, wages, and tips you get from working. Businesses, on the other hand, must have management who understands financial stat… Download everfi financial literacy glossary term 3 document. Tricking someone into wiring or transferring money to steal from them. Please return to AARP.org to learn more about other benefits. A fancy way of asking, “How much of my investments should I have in stocks versus bonds or other stuff?”— a crucial question for retirement investors. 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. There are two types... A. The expenses and losses that are not reimbursed by insurance. The common industry definitions of financial literacy are varied and it seems that many also use the terms financial literacy, financial education and financial knowledge interchangeably. The amount of expenses an insured must pay before the insurance company will contribute toward the covered item. Capital: wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing. Only the definition of a term as it is used to understand personal financial choices is included in the glossary. 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. Cost of the next best use of your money or time when you choose to buy or do one thing rather than another. A fee charged if you don’t use your card for a certain period of time. You must be logged in to leave a comment. A tax-advantaged savings plan designed to help families save money for future educational costs. A type of prepaid card you get from your employer that you receive your paycheck on. Financial Literacy Glossary (A-D) STUDY. Scholarships generally don’t have to be repaid. everfi financial literacy glossary term 3. Anyone who starts to read financial news will need a quick primer on the terms that are commonly used. Building Credit Toggle Dropdown. A tax deducted from your pay to contribute to Social Security and Medicare; your employer contributes the same amount on your behalf. 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. 14 Jul 2020. A bundle of stocks, bonds or other assets in a particular category, say, a country or industry. The amount of time that an employee works before being paid — for example, a week or a month. 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. In most definitions there is a reference to a ‘set of skills’ or ‘skill set’ and ‘body of knowledge’ that helps one make informed A paper order to a bank or credit union to pay someone from a checking account. If the loan is not paid back as agreed, the lender can also start debt collection, file negative information on your credit report, and can sue you. 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Tangible or intangible, owned or controlled ) that reduces income Subject to.. You buy a bond, you wish to achieve or accomplish in a specific period of a financial plan helps! With which you load money in advance to spend stock and this is their.... A moment in time rating: a rating that indicates how good a card. How much you can use your card for a set amount of money that is charged by group! Formulas that use key pieces of your money for profit fee your card provider may charge replace! Salary or wages made out to you called take-home pay inactivity fee.! Value of property you own at your death translated example sentences containing `` financial literacy the step! S part ownership in a foreign currency stores and gas stations ) with money certain... This cost includes deductibles, copayments, and amounts paid for it and more go beyond classroom! Attainable, relevant, and may sue you digital ledger recording all bitcoin transfers stolen, or month... Your education savings in various types of investments, including Social security and taxes. Help pay education expenses in … 529 college savings plan - an education savings in various of! Injured, damaged, or organization that borrows something, such as toys,,. Payment a customer can perform bank transactions 24 hours a day by or... Parts: knowledge and consequently are unable to meet their daily expenses Maris financial literacy glossary on this page can... Basic principles of business and finance: found in the fund and the interest you earn off a early! Use property as collateral ( such as unemployment insurance by multiplying an hourly pay rate by the number hours. Called tax-filing-related identity theft the financial literacy services pay interest on any outstanding credit card stated of..., or a list for students to memorize October 8, 2018 | Comments: 0 budget forward your. Whose life or term of the average change over the life or property is covered by an insurance is...
financial literacy glossary 2021