Personal finance Vocabulary

Money/savings

• The world revolves around it. It is used to buy items that are necessary 
• for everyday life. -Money
• Is a flow. You gain money over time. -Savings

Credit Union
A bank ran with a goal in mind, it uses teamwork and is ran by its members.

FDIC
US regulatory body responsible for chartering banks and insuring depositors against bank failure.

Commercial Banks
Banks that are for the public's use. They loans and accepts deposits.

Central Bank
A bank that is in charge of a countries money supply.

Checking Accounts
An account at a US Commercial Bank (see number 3) which can be drawn on without notice.

CD's
A certificate entitling the bearer to receive interest.

Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets.

Principal/disposable income/Discretionary income

•  Principal- The amount borrowed or the amount still owed on a loan.
• Disposable Income- Money you can spend.

Budget/expenses

• Budget- An estimate of income to be used for a set period of time.
• Expenses- The money that is needed to buy something.

Income
Money received.

Credit
How a customer can get stuff or services before payment.

APR
The broader measure of cost to you of borrowing money.

Bankruptcy
being bankrupt

Insurance
Insurance- Guaranteed compensation for specified loss, damage, illness, or death.

Investing
To invest in a business you put a little money out with expectation of achieving more.