Precision Exam Personal Finance

Charged by credit card companies for the privilege of using their card

The interest rate that shows what a borrower is actually paying with all the costs of financing factored in

The interest rate that shows what an account will earn annually with compounding factored in.

Something owned

A person who receives payment from a life insurance provider when the policyholder dies

List of planned expenses and revenues

The process of forecasting future expenses and income

The ability to use her credit card to withdraw cash from a bank or ATM (rather than just purchasing a good or service)

Money received

Money spent

A type of check that is written to a specific PE but charged against a bank instead of an individual account

A contract between an individual in a financial institution that specifies the time that the individual will leave a certain amount of money deposited in the account and the interest rate earned

A written order from an individual to a bank that instructs the bank to pay money to another party

An account into which a person deposits money and from which a person withdraws money by writing checks or using a debit card

Interest earned an interest added to an account

A person, other than the principal borrower, who signs for a loan and assume is equal liability for it

Money that a lender makes available to a borrower with the understanding that the borrower will repay the money

Provides individuals with revolving open and credit, which they can draw from repeatedly up to some preset limit

A person may borrow up to this amount based on his or her income level, debt level, and overall credit record

a number assigned to a person that indicates to lenders their capacity to repay a loan.

functions similarly to a bank, but has nonprofit status and is owned by its members.

Enables one to withdraw cash from an ATM or to pay directly for goods or services at stores and restaurants

The amount of money the policyholder must pay before an insurance policy will begin to cover a claim

the distribution of cash to shareholders.

The initial upfront portion of the total amount due on a purchase

Authorization for someone to access a bank account for payment or deposit

The process of determining how wealth will be allocated on or before a person death

A major federal insurer that provides deposit insurance on the first $250,000 deposited into a bank account

An expense that remains the same from period to period

Hourly wage multiplied by hours work

The total amount of a person's income

Provides payment to people who suffer a financial loss as a result of illness or injury

When someone uses an individuals personal information without permission for personal gain

Fee charged by lender on money borrowed

What is owed(debt)

Provides payment to a specific person or persons when the policyholder dies

A goal that will take more than five years to accomplish

Funded by payroll taxes. Provides healthcare coverage to older Americans and some younger disabled people

Functions similarly to a cashiers check. It is purchased for cash so that the recipient can trust it's worth

Sells shares to investors in order to collect a pool of money that is then used to by various investments

Wages that remain after taxes are withheld(take home pay)

Cost of pursuing one option instead of another expressed as a value of the activity you give up

Taxes withheld from paychecks and sent to the government byemployers

The process of planning every aspect of personal finances

A tax levied on the financial income of individuals

Not backed up by collateral. Also known as an unsecured loan

a person who buys an insurance plan; the insured

Tax collected by a merchant when a purchase is made and then sent to the government

a bank account that accumulates interest

People who own stock in a company

A fixed amount individuals are allowed to deduct from their adjusted gross income to reduce their tax liability

An expense that changes from one period to the next

A written cash flow plan

1. A plan for your budgeting and taxes 2. A plan for managing for managing your liquidity 3. A plan for your financing 4.A plan for Managing your risk 5. A plan for your investing 6. A plan for your retirement 7. A plan for communicating and keeping records

Refers to how quickly you can convert something to cash with significant loss of value

income received from working, either paid hourly or by salary

A check for a fixed amount that can be cashed or used in payment after endorsement with the holders signature

To pay back any money lost due to the failure of a financial institution

Regular payments paid to an insurance company in return for coverage

A time period during which no finance charges will be added to your account