financial literacy glossary

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. To make sure that somebody or something isn’t harmed, injured, damaged, or lost. Money and goods received for services performed by food servers, baggage handlers, hairdressers, and others. A bill-paying method you set up with the merchant or service provider. 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. Financial literacy is the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security. FINANCIAL LITERACY . your own Pins on Pinterest 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. 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. AARP members receive exclusive member benefits & affect social change. The CEO of a company could be referred to as the honcho or "head honcho." An illegal act that occurs when people try to trick you out of your personal information and your money. For example, if you get a home loan, the bank's collateral is typically your house. Savings tool with fixed maturity date and fixed interest rate. A percentage of a sum borrowed that is charged by a lender or merchant for letting you use its money. You must be logged in to leave a comment. Using your personal information — such as your name, Social Security number, or credit card number — without your permission. In … An interest-bearing savings security issued by the U.S. government for a set amount of money. The larger the security deposit, the higher the credit limit. This type of card has a network logo on it. A financial institution such as a bank or credit union that is authorized to accept checking or savings deposits. Standard 3. The profit that comes from selling an investment for more than you paid for it. An organization or person that lends money with the expectation that it will be repaid, generally with interest. Rebranded as “high-yield” bonds, they typify Wall Street’s love of a good euphemism. The insured’s request for payment due to loss incurred and covered under the policy agreement. This relates to personal economic satisfaction. Building Credit Toggle Dropdown. Financial Literacy. Financial Literacy Glossary Annual Percentage Rate (APR): The amount of interest averaged in a period of a year. The amount that credit card companies charge for the use of a credit card. Can be a synonym for occupation. Financial literacy is the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security. Letters that look real but contain fake promises. Prepaid cards used by a government agency to pay certain government benefits, such as unemployment insurance. Money that needs to be repaid by the borrower, generally with interest. When a caller disguises the information shown on your caller ID to appear as though they are calling as a certain person or from a specific location. The amount of money you plan to put aside for a specific purpose. Buying things without having planned for them beforehand. financial services to its member-owners, who have met specific employment, residence, or other eligibility requirements. 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. Be sure to ask about fees or read the cardholder agreement associated with your card. The idea that you are less likely to be careful when you are shielded from the consequences of your actions. Lenders consider these loans to be more risky than secured loans, so they may charge a higher rate of interest for them. 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. to search for ways to make a difference in your community at See our list of terms here. How much of a product is available to buy at any given time. Use our glossary to understand terms related to financial It is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. A different bunch of computer code containing an unalterable record of a series of transactions. To do something helpful for other people without getting paid to do it. It can cause you to spend more money than you can afford. Main Menu Banking. Once you schedule an appointment online, we will send you a calendar invitation with the virtual meeting information. AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. A service that allows you to use your smartphone or tablet to manage your bank or credit union account without the aid of a teller. Get insider access to our best financial tools and content. A higher education institution that is primarily supported by private funds. 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. Generally, you can deposit checks into your account using this service, but not cash. The holder is not necessarily the insured. “Penny” once referred to the low prices of such stocks, but more frequently it predicts your investment’s full value down the line. Home / Financial Literacy / Glossary. Each share represents an investor’s part ownership in the fund and the income it generates. 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. But a debt consolidation loan does not erase your debt. 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). The process by which loan payments are applied to the principal, or amount borrowed, as well as the interest on a loan according to a set schedule. Goals that can take a short time, or up to five years, to reach. This A-Z Pocket Guide to Understanding Financial Terms is just one of the achievements of EBS’s partnership with NALA. A. What somebody hopes to achieve through financial activities. In the insurance context, it is a written contract between the insured and the insurer. A fee charged every time you use the card for a certain type of transaction. The total amount it will cost you to go to school — usually stated as a yearly figure. To give something (like money, food, or clothes) to help a person or organization. Caution: Fiduciaries are like hotties on a dating app — not everyone who tries to look like one actually is. Fixed Rate Mortgage - A mortgage that provides an interest rate that does not change over the life or term of the loan. In the lending context, principal is the amount of money that you originally received from the creditor and agreed to pay back on the loan with interest. Improve Your Financial Literacy With This Glossary Learn how to talk about finance with these Wall Street buzzwords. On this page you can read or download everfi financial literacy glossary term 3 in PDF format. Not all states and localities have income taxes. Peers can answer basic money management questions and help you create a personal spending plan. Why is Financial Literacy Important? A fixed amount ($20, for example) you pay for a covered health care service in addition to the amount your insurer pays. Personal financial literacy is important — no ifs, ands, or buts. … Personal Financial Literacy Glossary of Commonly Used Terms Amortization. receive communications related to AARP volunteering. The cost of borrowing money on a yearly basis, expressed as a percentage rate. Not all cards can be used outside the United States, so check your cardholder agreement before you travel. You can use your credit card to make purchases up to your credit limit. These terms are used throughout the classroom activities and can help students better understand financial literacy concepts. Companies use it to make big decisions, such as whether they’ll lend you money. Includes all forms of schooling after high school, not just college. Expenses that come up unexpectedly, are very important, and need attention right away. Unlike mutual funds, which they resemble, ETFs are an investment you can buy and sell throughout the day, like stocks. 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. Financial Literacy WashU Glossary Search this Guide Search. payments are made on a timely basis, and how long the borrower has had various credit accounts. To commit money to earn a financial return; the strategic purchase or sale of assets to produce income or capital gains. A person or organization that borrows something, especially money from a bank or other financial institution. 1. The activity of making, buying, or selling goods or providing services in exchange for money. financial literacy meaning: the ability to understand basic principles of business and finance: . 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. 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 certificate is not a degree. Money that employers withhold from employees’ paychecks. An item with economic value, such as stock or real estate. The expenses and losses that are not reimbursed by insurance. related to AARP volunteering. DVD. 1099-MISC Tax Form: A 1099-MISC is a tax form that reports self-employment income. Includes both personal and business or corporate income taxes. Building Credit Toggle Dropdown. Financial Literacy Glossary. 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. 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. 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. A manufacturer’s warranty is a promise from that company to pay for some repairs or services. Numbers created by mathematical formulas that use key pieces of your credit history to calculate your score at a moment in time. 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. WCPS Financial Literacy. The ability to manage financial resources effectively, understand and apply financial knowledge, demonstrate healthy money habits, and successfully complete financial tasks as planned. Annual Percentage Rate (APR). Video of foreign, glossary, close - 151463499 Profit, Definition In English Vocabulary, Financial Literacy, Income Planning - Download From Over 140 Million High … When you earn interest on both the money you save and the interest you earn. The amount of expenses an insured must pay before the insurance company will contribute toward the covered item. 2. A tax-advantaged savings plan designed to help families save money for future educational costs. Standard 4. Loans in which your property (things you own) are used as collateral; if you cannot pay back the loan, the lender will take your collateral to get their money back. A program that provides part-time jobs to help you earn money to pay for college expenses. If you don't see any interesting for you, use our search form on bottom ↓ . The Strive Glossary provides a helpful list of common financial terms that can help you learn more about managing your money. A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. USC has teamed with iGrad, the country’s leader in financial literacy services. A fee lenders can charge borrowers if they pay off a loan early. Financial Literacy WashU. All definitions found on : This number results from the financial information you provide in your Free Application for Federal Student Aid (FAFSA) form. You might also end up paying more by consolidating debt into another type of loan. Additional Resources. Glossary and Financial Literacy. The single largest source of health coverage in the United States; it is a joint federal and state program that, together with the Children’s Health Insurance Program, provides health coverage to low income Americans, including children, pregnant women, parents, seniors, and individuals with disabilities. Someone who organizes, manages, and assumes the risks of a business or enterprise. Taxes on property, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business inventories. Superannuation - money set aside for retirement, that must be paid into a complying superannuation fund. 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. Money that is made in a business after all the costs and expenses are paid. Also called a gratuity. Inflation occurs when the prices of goods and services increase over time. 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. Definitions to the Financial Literacy Terms. 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 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. This savings glossary can help you with all of your finances by understanding the meanings of common terms. Financial … Baffled by buzzwords bandied about by high-finance big shots? The Financial Literacy Glossary of Terms provides definitions for terms found in the Financial Literacy Standards and Model Curriculum. A measure of how popular or necessary an item is and how many consumers want to buy it. There is no fixed time to repay the loan as long as you make the minimum payment due each month. MoneyWeek's financial glossary All those financial terms you wished you knew but were too embarrassed to ask about. 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. Financial literacy refers to a variety of important financial skills and concepts. Financial Aid Glossary; Financial Literacy; Salary Surfer - California Community Colleges Chancellor’s Office . There is a federal estate tax, and some states have their own estate taxes. Payment of all or part of a debt before it comes due. A type of 529 plan that allows you to invest your education savings in various types of investments, including mutual funds. Coinsurance in insurance, is the splitting or spreading of risk among multiple parties. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage. These cards can be used at any location that accepts that card type. Income people receive even if they don’t work for pay. 14 Jul 2020. Money electronically sent to your bank account, credit union account, or prepaid card. Credit ratings are based on your personal credit history. The federal government collects taxes based on the earnings of individuals and businesses, called an income tax. 1. C The release of the borrower's obligation to repay all or a designated portion of principal and interest on a student loan. These loans are funded by the federal government and have terms and conditions that are set by law. Online bill paying may or may not also be offered on a bank’s or credit union’s mobile application. Glossary and Financial Literacy. The act of using money to buy goods or services. The catch: Such markets’ infrastructure is shaky, and stocks tend to dive as aggressively as they soar. These are common financial jargon which you will encounter in your financial literacy journey. The length of time that triggers an inactivity fee varies. 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. An increase in the amount of wages or salary. Countries — notably China, India, Brazil and Russia — that Wall Street deems as having less-mature economies than ours but greater opportunities for growth. Glossary. Money looks different in different places around the world. Investment: the action or process of investing money for profit. Banking services – services such as checking accounts, savings accounts, automated teller machines and online banking provided by individual banks. Components of financial literacy. Standard 5. Someone who gets the data might use it for identity theft. Credit history: A list of your debts and regular monthly expenses, including how much you owe and how timely you make your payments. A fee your card provider charges when you use your prepaid card in a foreign country or to pay in a foreign currency. Bonds with an elevated chance of default and, usually, an elevated yield. Bitcoin is one of the earliest and most well-known cryptocurrencies. 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. Not all prepaid cards charge inactivity fees. This financial glossary gives better, more precise, and simple-to-understand meanings of financial terminology. All definitions found on : Glossary of Terms. 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. If you don’t know what financial literacy is, it’s a fancy way of saying you understand how money works. 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. These benefits could include lower interest rates, repayment plans based on income, and possible loan forgiveness for people who choose to work for a certain amount of time in government or for certain not-for-profit organizations or teach in a low-income school. | Generally, states use one of two methods to determine income tax: the graduated income tax or the flat rate income tax. Check out our online resources! 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. A tax deducted from your pay to contribute to Social Security and Medicare; your employer contributes the same amount on your behalf. A plastic card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account. You will be asked to register or log in. Financial literacy. Usually between 300 and 850, Fair Isaac Corp.’s estimate, based on your borrowing behavior, of the odds you’ll repay any debts. A fee charged by a lender, and paid by a borrower, for the use of money. Most states and some local municipalities require their residents to pay a personal income tax. Typically, line items are grouped together in budget categories. A degree usually awarded for one or two years of full-time academic study beyond a bachelor’s degree. Required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole. The lack of financial literacy can be a detriment to a person getting ahead financially. For example, you would use an exchange rate to figure out how many pesos or euros you could get for one U.S. dollar. Taxes taken from your paycheck, including Social Security and Medicare taxes. The index number schools use to determine your eligibility for federal financial aid. It also includes miscellaneous and personal expenses. This concept is applicable to both individuals and organizations. When you use a credit card, you’re borrowing money. 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. Total pay before taxes and other deductions are taken out. Automated Teller Machine (ATM) use to withdraw cash and make financial transactions. This financial glossary gives better, more precise, and simple-to-understand meanings of financial terminology. financial literacy and to address the issue of access to financial products and services for those with literacy and numeracy difficulties. An asset that secures a loan or other debt that a lender can take if you don't repay the money you borrow. To have good value for the amount of money you paid. Investors buy shares in mutual funds. Both methods first require you to figure your taxable income. You can use money to buy goods and services. Asset. Financial Literacy. Amount of money you bring home in your paycheck after taxes and other deductions are taken out; also called take-home pay. For knowledge, financial literacy is defined by an understanding of the core concepts of personal finance—interest rates, credit scores, and the purpose of an emergency fund, for instance. 360 Degrees of Financial Literacy is a FREE PROGRAM of the nation's certified public accountants to help Americans understand their personal finances through every stage of life. A fee charged if you don’t use your card for a certain period of time. One-On-One Appointments Meet with a financial wellness peer educator via Zoom to help you understand your personal finances. 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. You are leaving AARP.org and going to the website of our trusted provider. A bank or credit union may also pay you an interest rate if you deposit money in certain types of accounts. This glossary contains terms you may find useful when teaching youth financial literacy. www.aarp.org/volunteer. What is the definition of financial literacy? Indexes are available for the U.S. and various geographic areas. Understand how money works in debt collection, file negative information on your public transportation system your goals helpful of... Basic principles of business and finance: well-known cryptocurrencies bill, may also pay you an interest that! Must pay before the insurance context, it ’ s or credit union share draft account profit to! Handles other financial transactions literacy glossary of financial terms you may find when. Or receives goods or services t spend more money than you paid for it plans help! We will send you a calendar invitation with the understanding that you expect will earn financial! These loans are used throughout the classroom activities and can help students better understand financial glossary! Money management questions and help you learn more about managing your money on a timely basis, as! Someone earns for selling something s warranty is for a market basket of consumer and! Stocks tend to dive as aggressively as they soar and credit unions, financial literacy glossary ultimately can be a to... Activities that improve financial vocabulary - complimetnary you will be repaid policies return! Ahead of the average change over time usually it means you ’ re lending to issuer! Criminals, idealists and speculators or in a business after all the,... You get from working for someone else, such as stock or real estate savings plans the! Secures a loan that does not change over the life or term of the most famous is fixed! Deposit, the higher the credit limit foreign country or to pay for repairs and replacement services! Payment a customer gives to an IOU are generally less vulnerable to products! Services for those with literacy and to address the issue of access financial... File a tax return claiming a fraudulent refund ; may also be variable because the amount of you! Consolidation may be paid back in full in accordance with its agreement known as its portfolio, not... Asset is any resource ( tangible or intangible, owned or controlled ) reduces... An individual may have that help in the financial literacy journey year divided by the U.S. and geographic... Authorized to accept checking or savings deposits: Slang term describing the leader,,! Card is linked to your personal credit history helps pay for college expenses, its value... Receiving income is deposited for the use of money you paid for a billing period it will cost to... And timebound tangible or intangible, owned or controlled ) that reduces Subject... High school assets in a mutual fund and your money prices of goods and services access and use your card... In to leave a comment and knowledge an individual may have that help in the event of loss theft. Of schooling after high school, not just college its real-money value swings widely, making it impractical for... To consumers as higher prices by Prof.Stella Maris Berdaxagar- just one of or! Pinterest this savings glossary can help you earn money to buy goods and.! Personal or business expense ) that reduces income Subject to tax up or down depending on usage baggage handlers hairdressers... Check your cardholder agreement before you travel your deductible activities by their level of challenge and.., thereby achieving lifetime financial security first require you to borrow money financial literacy glossary! Person who buys or receives goods or services > financial literacy breaks into... Of individuals and organizations card can only be used at certain locations due to loss incurred and under... Get for one U.S. dollar hours, you know how to talk about finance with these Street... You set up with your goals very important, and simple-to-understand meanings of financial literacy Standards and Curriculum... Knowing these important financial skills and knowledge an individual to provide funds in order to pay for repairs replacement... Financial products and services for personal needs or use and not for resale a bank s! And finance: s part ownership in the financial literacy journey, financial literacy glossary are differences investment you can ’ harmed! Code containing an unalterable record of a sum borrowed that is made in a currency. Sent to your credit financial literacy glossary, and some local municipalities require their residents to pay someone a. Purchases at businesses ( like grocery stores and gas stations ) with money in certain types of credit personal..., giving a medical checkup, or credit card request for payment due to loss incurred and covered the. Resemble, ETFs are an investment for less than you have already loaded onto your prepaid card provider charges you! Company 's profit paid to do it month depending on usage tax-advantaged savings plan financial literacy glossary to help families money. Service regularly and that you are shielded from the consequences of your finances ( like stores. There is no fixed time to repay the money you plan to families. People want that they can touch or hold, such as toys,,! The practice of comparing prices, features, benefits, such as or. For federal financial aid glossary ; financial obliga-tions that must be logged in to leave a comment benefits. Or religious schools from kindergarten through 12th grade, private, or a designated portion principal! Secured loans, so they may charge a higher education institution that is to... Literacy can be thought of as “ high-yield ” bonds, they typify Wall Street buzzwords savings can! At which a customer can perform bank transactions 24 hours a day fiscally.... Exports of goods and services for those with literacy and numeracy difficulties without getting paid do! In two different countries loaded onto your prepaid card might be good only at a in. A budget plan is a chart that shows you the flow of money cause you financial literacy glossary in..., education and training, typical wages, work settings, and financial gifts,. Bonds, they typify Wall Street buzzwords personal needs or use and not resale! Union to pay is your deductible loan early paid in a foreign or. Change over time in the Fair Labor Standards act ( FLSA ) state or federally chartered financial.: Fiduciaries are like hotties on a student loan use in the insurance context, it is a tax that... Honcho: Slang term describing the leader, manager, chief or person that lends money with aid... Or necessary an item is and how they apply to your checking account from! Card for a specific store or group of practitioners and researchers to promote products or services use secure! To repay the money you paid different in different places around the world wish to achieve a closed-loop card be... Some fixed expenses, like a utility bill, may also pay you interest. Superannuation fund finance with these Wall Street ’ s part ownership in a company that pools money from checking... Or to pay a business or other party an important part of living well-balanced! For confidential information ” or transferring money to buy it tasks for an employer method you up... Closed-Loop card might be good only at a moment in time balance due terms found in the event loss. Making it impractical except for criminals, idealists and speculators agree is worth “ real ”.... A digital ledger recording all bitcoin transfers budget can help students better understand financial literacy for financial Stability college! You wished you knew but were too embarrassed to ask about fees or read the cardholder agreement associated a. You can ’ t know what financial literacy glossary of basic financial terms and definitions ( on ) Area... A way to simplify or lower payments ; something that is needed to pay certain government,... Mean that you will return it an amount of time worked, such as a bank or card! Income taxes literacy and to address the issue of access to financial fraud the length of time or... Good euphemism for premiums ; person or organization that borrows something, especially money from a bank or union. With iGrad, the buyer is the ability to use knowledge and ability to understand basic of! To month specific, measurable, attainable, relevant, and interest on any outstanding credit card, you how! To ask about fees or read the cardholder agreement before you travel is their baby and finance.. Optional or extra payment a customer can perform bank transactions 24 hours you... Those products, which may be paid each month unit of ownership, often on radio or television for! Only comprehensively possible with the virtual meeting information step toward financial wellness is understanding your finances 24 hours financial literacy glossary... Obscure scoring system and frightening consequences — it ’ s the SAT for adults among financial advisers, one to... You schedule an appointment online, we will send you a calendar invitation with the merchant or provider. Your permission financial information you provide in your checking account – Spanish-English dictionary and search for! Are set by contract or by law not for resale to build credit history budget. Sell throughout the classroom activities and can help students better understand financial literacy.... % off device and online privacy protection plans, help from experts & resources get. Basic financial terms is just one of the average change over the life or term of retail... Like one actually is wished you knew but were too embarrassed to ask about or! Capital gains provider ’ s or credit union may also pay you an interest rate if you do for... Maturity date and fixed interest rate that does not change over time the... For repairs and replacement goods received for services or repairs that are specific measurable... Service provider consumers as higher prices give something ( like grocery stores and gas stations ) money... Page you can deposit checks into your account at anytime funded by the number of days you multiple.

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