Allowance - an amount of money parents give kids to help them learn to manage money. The amount is usually given weekly. Sometimes an allowance is tied to completing responsibilities — household chores or jobs for the family.
Annual Percentage Rate (APR) - the rate of interest (in terms of a percent, such as 8.75%) being charged for a loan over a year's time. The APR rate includesinterest, transaction fees, and service fees.
Appreciate - to grow in value. Usually a term used in relation to investments: stocks, collectibles, etc., which are now worth more than you paid for them.
Asset - any item of value that you own: house, land, gems, stocks, bonds, money in savings, etc.
ATM - These letters stand for Automatic Teller Machine. This is an electronic machine that enables peopleto take care of Credit Union business 24 hours a day, 7 days a week. You can deposit and withdraw money, pay loans, etc., at most ATMs.
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Balance - 1) In talking about loans, the balance is the difference between the amount owed and the amount paid. If you pay $45 on a $100 debt, your balance is $55. 2) In talking about checkbooks, balancing means to account for all money that came into andwent out of your account, so that at the end of the month you and your Credit Union statement agree. 3) In talking about savings, your balance is what is left in your savings account after you deposit or withdraw money.
Bankruptcy - a state of being in so much debt that you are legally declared unable to pay in full the people and companies you owe. When you legally declare yourself bankrupt insome states, you must sell off all your possessions and pay off your debts as best you can.
Blue Chip Stock - a name given to the stocks of major corporations, like IBM and General Motors. The name is derived from the most highly valued poker chip, the blue chip.
Bond - an IOU issued by a corporation or government that confirms you are lending the corporation or government money. Bonds payinterest regularly to lenders. At the end of the term of the bond, the borrower returns to the lender the face value of the bond (the amount the lender invested in the bond).
Broker - a licensed professional who advises people about investments; also helps people buy and sell stocks, bonds, mutual funds, etc. The broker earns a fee for this help, called a commission, usually a percentage of thetransaction.
Budget - a plan you create for controlling spending and encouraging saving.
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Certificate of Deposit - a type of investment that requires you to invest money for a certain length of time and guarantees the same rate of return (interest) for that entire time. CDs usually require a minimum deposit.
Charge - to borrow money (from a store, service provider, or credit card company) tomake a purchase. If you do not pay the debt off in full within the card issuer's grace period (usually 25-28 days), you will pay interest on the amount you owe.
Check register - (sometimes called a check ledger). This booklet is usually kept in your checkbook, and you use it to keep track of all the deposits, withdrawals, and checks you write. After you write each in your register, you subtract oradd the amount to your checking account balance. If you keep your register up-to-date, you will always know how much money you have in your checking account.
Collectibles - objects such as art, jewelry, baseball cards, and antiques that people buy in the hope that the objects' value will increase.
Commodities - raw materials — such as oil, wheat, soybeans, pork, or gold -you buy. In buyingcommodities you are hoping that the price will rise, so that you can sell the commodity for a profit.
Compound Interest - interest on an investment, like a savings account, that is calculated not only on the money you originally invested, but also on any interest the investment has already earned.
Corporation - the most common form of organizing a business — the organization's total worth is divided...