Finance

Account Fee The amount charged by a financial institution for the services they provide in managing the account.This may also be called the monthly service fee.
Automated Teller Machine (ATM) A specialized computer used by bank customers to manage their money, forexample, to get cash, make deposits, or transfer money between accounts
Bad Credit A situation in which lenders believe that, due to a borrower’s poor history of repaying his or her debts,further loans to this person would be especially risky.
Account Balance The exact amount of money contained in a deposit account according to the bank. This figure may be different that the amount shown in your own credit records because of the checks you have written or deposits you have made that have not been processed by the financial institution.
Bank A financial institution that handles money, including keeping it for saving or commercial purposes, andexchanging, investing, and supplying it for loans.
Bank account A banking service allowing a customer’s money to be handled and tracked. Common bank accountsare savings and checking accounts.
Budget A monthly or yearly spending and savings plan developed by a person, family, or business. A written budget helps people to be better money managers and to prepare for major or unexpected expenses.
Cancelled check A customer’s check that the bank has paid and charged against the check writer’s account. Cancelledchecks may be returned to the check writer with the monthly bank statement, or they may be kept on film by the bank.
Charge Card Similar to a credit card, except that a charge card requires the card holder to pay off the entire balancemonthly
Check A written order instructing the bank to pay a specific amount of money to a specific person or entity. The check must contain a date, payee (person, company, or organization to be paid), amount, and an authorized signature.
Check Register A small notepad you receive when you open a checking account for the purpose of tracking yourchecks, deposits, and current balance.
Checking Account A bank account that allows a customer to deposit and withdraw money and write checks. Using achecking account can be safer and more convenient than handling cash.
Co-signer A second person who signs your credit or loan application. Just like the borrower, the co-signer on a loan is equally responsible for repaying the debt. Also called a co-borrower.
Credit When a bank or business allows its customers to purchase goods or services on the promise of future payment. Also used to describe any item that increases the balance in a bank account. Deposits and interest payments are both examples of credits.
credit card Any card that may be used repeatedly to borrow money or buy products and services on credit. Credit cards are issued by financial institutions, retail stores, and other businesses. A credit card offers the card holder revolving credit that can be paid monthly with as little as the required minimum payment.
Credit History A written record of a person’s use of credit, including applying for credit, and using credit or loans to makepurchases. Also called a credit record.
Creditor An individual or business that lends money or extends credit.
Currency Any form of money that is in public circulation, for example, paper bills and coins.
Debit Card A card linked to a checking account that can be used to withdraw money and make deposits at an ATM and to make purchases at merchants. When you use a debit card, the money will be deducted from the linked checking account.
Debt Money, goods, or services you owe to others.
Deposit To put money into your account
Deposit Slips A printed form supplied by a financial institution. Customers list the amounts and types of funds (such as checks and bills) they are depositing and include the slip with their deposit.
Economy Activities related to the production of goods and services in a particular geographic region, such as a country, state, or county.
Expense For individuals, an expense is a cost of living for example rent or groceries. For businesses, an expense is any cost resulting from the money-making activities of the business.
Fee Charges for services by a financial institution or lender.
Finance Charge The amount of money a borrower pays to a lender for the privilege of borrowing money, includinginterest and other service charges.
Good Credit A situation in which lenders are willing to make loans to an individual, due to his or her good history ofrepaying debts.
Income For an individual, income means the amount of money received during a period of time, including moneyreceived in exchange for labor or services, from the sale of goods or property, or as profit from financial investments. For a business, income is (all the money brought in) minus cost of sales, operating expenses, and taxes, over a given period of time.
Interest The amount of money paid by a borrower to a lender in exchange for the use of the lender’s money forcertain period of time. For example, you earn interest from a bank if you have a savings account and you pay interest to a lender if you have a loan.
Investment Property or another possession acquired for future financial return or benefit.
Late fee The charge or fee that is added to a loan or credit card payment when the payment is made after the due date.
Loan An agreement between a borrower and a lender, where the borrower agrees to repay money with interest over a period of time.
Minimum Balance A specific amount of money required by a financial institution in order to open or maintain a particularaccount. In some cases, a financial institution may charge the account holder fees, or even close an account, if the minimum balance is not maintained.
Minimum Payment The least amount of money to be repaid on a loan or credit card in order to keep the account ingood standing.
Money Order A document issued by a post office or bank or convenience store ordering payment of a specific sum of money to an individual or business. There is usually a small charge for purchasing a money order
Online Banking A service that allows you to handle banking activities by computer, using the Internet.
Outstanding Balance The amount still owed on a bill, loan, or credit line.
Overdraft a deficit in a bank account caused by drawing more money than the account holds
Overdraft protection When there is not enough money in an account to cover a transaction and the bank pays it on yourbehalf, creating a negative balance in the account that you need to repay
Payee The person, company, or organization to whom a check is written: a person or company who is to receive money
Payor (or Payer) The person or company from whose account the money is to be taken to pay a check: a person orcompany who pays money.
Penalty, Penalty Fee A fee charged for the violation of a rule in a financial agreement
Personal identification number (PIN) A secret combination of letters or numbers you use to gain access to your account through an electronic device such as an ATM.
Risk The measurable likelihood of loss, or less-than-expected return, on an investment or a loan.
Routing Number The nine-digit number on the bottom left hand corner of your checks, to the left of your accountnumber.
Sales Tax A tax charged by the state or city on the retail price of an item, collected by the retailer.
Savings Account A bank account that allows a customer to deposit and withdraw money and earn interest on the balance.
Spending Limit The maximum dollar amount the lender is willing to make available to the borrower according to theagreement between them. For example, if you have a credit card, the credit agreement will usually specify the maximum amount of money you’re allowed to charge.
Statement A monthly accounting document sent to you by your bank that lists your account balance at thebeginning and end of the month, and all of the checks you wrote that your bank has processed during the month. Your statement also lists other deposits, deductions, and fees, such as service charges.
Treasury department of the U.S. government that handles financial related functions such as managing federal finances, collecting taxes, producing currency and coins, and supervising national banks
Unpaid balance The amount that is still owed on a loan or credit card debt
Value Having worth, desirability, or usefulness
Withdraw To take money out of an account

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