Personal Finance

When interest is charged on the amount of the principal & accrued interest every period.

Retirement plan using compounding interest- taxed at beginning of term

A way to describe periods of economic growth and decline.

The amount of money someone gets in a given period

A long-term economic downturn lasting more than 6 months.

Money taken out of gross income for things like taxes and FICA.

Very safe and liquid short-term investments with very low interest rates (1%/2%).

Bank where profits go back to members in the form of lower costs.

Smaller amount of pay left over after deductions

When a bank lets a person/group borrow money (loan)

The economic boom and bust in an economy in a given time period

Name of loan given for home. Bank can take back home if there is default

Having different kinds of investments instead of just one.

An economic downturn (bust) marked by 2 quarters (6 months) of economic decline.

The record of your financial habits indicated by your credit score.

Person or group that charges extremely high interest rates for a loan (40%-300%)

Amount of money gained and spent in a given period.

How easily you are able to get your cash back from an investment

The numeric score given to borrowers that lets lenders know if the borrower is trustworthy.

Total amount paid to employee before deductions

The plan you set up to reach your short and long term life goals.

Guarantee of payment of a set amount for a loss, in exchange for regular premium payment .

The possibility that something bad will happen.

Short-term low-risk investment usually lasting 1 to 5 year set time periods. (1%-5% returns)

Medium risk investment where person has partial ownership of a company. Usually pays (5%-20%)

The action of reducing the unpleasantness of a particular event

Expenditures taken out of net pay that you control (ie rent, utilities)

Putting money into something to gain a profit.

Interest rate that never changes vs an interest rate that can change during life of loan.

Retirement plan using compounding interest- taxed at end of term