---

A

Annual Percentage Rate (APR) cost of credit calculated as an annual percentage.
Asset something of value owned by a firm, household, or individual; what the company owns after debts are paid.

---

C

Checking account bank account which allows the depositor to write checks.
Checks written orders directing a bank to pay a person or business a specific sum of money.
Collateral something with monetary value pledged as security for a loan.
Compound interest interest computed on the sum of the principal and the interest previously paid.
Consolidating to combine into a single whole; to make one.
Credit card card that enables its holder to charge expenses.
Creditor one who lends money to another.

---

D

Deduction amount allowed to taxpayers under the Internal Revenue Code as an offset against gross income or adjusted gross income.
Depreciation value lost in assets as they wear out or become obsolete.
Direct deposit arrangement whereby a dividend or other receipt can be deposited to the recipient's checking or savings account, often by electronic mail.
Disposable income money left after buying necessities.

---

E

Equity ownership in a business.

---

F

Fixed rate mortgage mortgage in which the interest rate does not change during the entire term of the loan, most often 15 years or 30 years.

---

G

Grace period interest-free period of time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days.

---

I

Income money earned through employment and investments.
Individual Retirement Account (IRA) self-funded retirement plan that allows contributions toward retirement; taxes on the interest earned in the account are deferred.
Inflation period of rising prices when the purchasing power of the dollar is falling.
Interest payment for using someone else’s money; income from allowing someone else to use one’s capital.
Interest rates percentage of a sum of money charged for its use.
Investment purchase of capital resources used to produce goods and services; it may consist of shares in a corporation, real estate, or plant and equipment.

---

L

Liability any claim, or debt, of an individual or business; what a business owes.
Loan sum of money lent at interest.
Loan consolidation loan that combines and refinances other loans or debt.
Loan default not repaying loans on time; loans may be turned over to a collection agency.

---

M

Money market account savings account that offers higher interest rates than most savings accounts and is insured by the FDIC.
Money market funds mutual funds that use the resources of their investors to buy money market certificates.
Mortgage long-term loan to purchase property.
Mutual funds special investment companies in which people pool their savings to diversify their investments.

---

N

Net Income money earned after taxes are deducted.
Net worth the difference between a firm’s assets and its liabilities.

---

P

Periodic rate variable rate on a credit card that may increase or decrease each quarter. If the rate increases, the finance charge will increase and the minimum payment due may be greater.
Principal face value of an obligation, such as a bond or a loan, that must be repaid at maturity.

---

R

Rate of inflation annual percentage increase in the general level of prices.
Rate of return percentage of interest or dividends earned or paid on the principal of an investment.
Refund paid to a taxpayer by the IRS when withholding and estimated tax payments exceed tax for the year.
Risk danger or probability of loss to an insurer or the amount that a company stands to lose; the variability of returns from an investment; the chance of nonpayment of a debt.
Risk management minimizes possible financial loss by identifying potential sources of loss, measuring the financial consequences of a loss, and creating a risk management plan for actual losses and their financial consequences.

---

S

Savings amount of money put aside for later use.
Savings account deposit account that pays interest, usually from day of deposit to day of withdrawal.
Savings bond bond that is issued by the United States government and is insured for the full investment and interest.
Securities document indicating ownership or creditorship; a stock certificate or bond.
Securities and Exchange Commission (SEC) federal agency responsible for protecting investors in the sale of securities.
Stock shares in the ownership of a corporation.
Stock market general term for the organized trading of stocks through exchanges and over-the-counter.
Stockholder owner of stock in a corporation.
Surplus how much more of a product sellers want to sell than buyers want to buy at a given price. In budgeting, a surplus occurs when income exceeds expenditures.

---

T

Tax credits amount of money that taxpayers can deduct directly from their taxes. Tax credits are available for purposes such as child care expenses and the earned income credit for low-income taxpayers.
Tax deductions amount that a person or business can subtract from their taxable income.
Tax exemptions part of the total income on which no tax is imposed.
Treasury bills securities of the federal government issued for terms of less than a year. The purchasers are lending money to the government.

---

U

U. S. savings bonds small denomination certificates issued by the U.S. government for relatively long terms.

---

W

Wages earnings of workers paid by the hour or unit of production.

---

Y

Yield actual amount of interest earned; depends on the rate of return and the frequency of compounding.