Everfi – Summary of ALL Modules – Flashcards
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Associate's Degree
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A degree granted after two years of study, often by a community or junior college
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Annual Percentage Rate (APR)
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Another name for the interest rate charged on the balance of a credit card
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Auto Insurance
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Type of insurance that protects a policyholder in the case of a car accident. Most states require it by law.
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Bachelor's Degree
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A degree awarded by a college or university for completing undergraduate studies.
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cash advance
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loan of cash you obtain with a credit card; not recommended as they incur VERY high interest rates
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Certificate of Deposit
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type of savings vehicle in which you put your money away for a certain amount of time to allow your principal to earn interest; safe investments, but with a very low return
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credit history
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The complete record of your credit performance. It helps creditors gauge your ability to pay back new debts
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credit limit
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Max amount of money that may be borrowed at one time
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credit report
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A report on a person's creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
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credit score
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A rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.
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debit card
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A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder (also called a check card)
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direct deposit
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An automatic deposit of a paycheck without having to take a physical check to the bank.
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FAFSA
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-Free Application for Federal Student Aid. The almost universal application for financial aid, including loans, grants, college work-study and other federal and state programs. It is often required before a student can be considered for scholarships also.
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FDIC
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Federal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions; up to $250,000 insured per person per bank
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Federal Income Tax
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A payroll deduction collected by employers by law and sent to the federal government to support governmental programs.
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Federal Student Loans
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Federal Student Loans offer a fixed interest rate, they charge lower interest rates than private loans, and they do not require a credit check
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Federal Work-Study Program
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A federally funded program that helps college students earn aid through part-time work. Students find jobs through their college. The money goes toward paying college expenses.
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Fixed Rate
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an interest rate that does not change over time.
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Grace Period
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A time period during which no finance charges will be added to your account
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Grant
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given to students to help pay for their education and do not have to be repaid
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health insurance
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a type of insurance that covers the cost of medical expenses
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homeowners insurance
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type of insurance that covers your home as well as your possessions inside it in case of damage or loss
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IRS
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Government Agency who is responsible for collecting taxes.
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Interest rate
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Percentage of amount borrowed to be added to the amount loaned and paid back
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Interest
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A sum paid or charged for the use of money or for borrowing money
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Lease
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a contract granting use or occupation of property during a specified time for a specified payment
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Life Insurance
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insurance paid to named beneficiaries when the insured person dies
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Minimum Monthly Payment
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the smallest amount you can pay and remain a borrower in good standing
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Mortgage
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A loan to purchase a home or other real estate
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Payday Lenders
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Payday lenders offer small cash loans, usually in the range of $100 to $500, with payment due in full at the borrower's next paycheck. High Interest.
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Pell Grant
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Need-based federal student aid grant for undergraduate students ranging from $200 to $3750 annually
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Perkins Loan
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common federal student loan. These loans have a set 5% interest rate and a 10 year repayment period.
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principal
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(1) A sum loaned or employed as a fund or an investment, as distinguished from its income or profits. (2) The original amount (as in loan) of the total due and payable at a certain date.
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Renters Insurance
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a type of insurance that covers the loss of a tenant's personal property as a result of damage or theft
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Required Balance
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A certain amount of money that must be kept in your account at all times or you may be penalized.
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Routing Number
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nine digit bank code used in US on bottom left of checks used to identify the financial institution on which it was drawn, matches to the bank that you bank at
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Rule of 72
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A mathematical method that can be used to show how long it will take to double your money in an investment simply by dividing 72 by the rate of interest.
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Sales Tax
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A tax on a sale of merchandise or services; In Alabama, about half goes to the state and half to the city or county where you made your purchase
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Savings Account
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A bank account which accrues interest in exchange for use of the money on deposit.
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Social Security
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guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health
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Stafford Loan
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A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education
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State Income Tax
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A payroll deduction collected by employers by law and sent to the state government to support state services.
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Subsidized Student Loan
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This is a type of federal student loan on which the government pays the interest that accrues while a student is in school
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Unsubsidized Student Loan
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will start accruing interest from the time the loan is taken out
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W-2
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The form given to employees detailing the income received and taxes paid over the previous year.
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W-4
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A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.
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asset
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property owned by an individual that has some value (ex. house, car, land, stocks, bonds)
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ATM Card
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similar to a debit card, but requires you to enter a PIN when making purchases
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appreciating assets
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something you own that increases in value over time (houses in a good area might be an example)
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capital gains tax
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taxes on the profits made from a sale (ex. money made on sale of stocks or property)
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claim
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the request you make to your insurance company for payment of the benefits allowed by your coverage
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compound interest
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interest calculated on both the principal and the accrued interest; helps your money to "snowball"
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mutual fund
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A pool of money from many investors that is used to buy different stocks and bonds
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phishing scam
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Spoofed email and website in order to trick a person into providing private information
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premium
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A specific sum of money paid (usually monthly)by the insured to the insurance company in exchange for financial protection against loss
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rate of return
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Earnings from an investment, stated as a percentage of the amount invested; usually calculated on an annual basis
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security deposit
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A sum of money usually equal to one month's rent, held by the landlord to cover any damage to the apartment caused by a tenant
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stock
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A certificate of ownership in a corporation; also called shares or "shares of stock"
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stockholder
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also called a shareholder; one who owns at least one share of stock in a company
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ticker symbol
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The abbreviated term that is used to identify a stock for trading purposes (ex. Apple's is AAPL)
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volatile
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in investments, describes a stock which is unpredictable and unstable
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want
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an expense that is not an absolute necessity
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co-pay
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a small fixed fee paid by the patient at the time of an office visit
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coverage
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refers to the range of protection you are eligible to receive from an insurance plan
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credit bureaus
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these collect credit information about individuals (Equifax, Experian, TransUnion)
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debit
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when money is taken out of a bank account
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deductible
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Specified amount of money that the insured must pay for covered medical expenses before the insurance policy begins to pay
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deduction
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an expense incurred by a taxpayer that can be subtracted from gross income when computing taxes owed
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default
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occurs when a borrower is unable or unwilling to repay a debt
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depreciating asset
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something you own that decreases in value over time, meaning that if you sell the asset, you'll get less money than you paid for it originally
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disability insurance
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A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time
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diversification
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Buying several different investment alternatives to spread the risk of investing
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dividend
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A distribution (payout) to corporate shareholders of corporate profits or income, disbursed in proportion to the number of shares held
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Dow Jones Industrial Average
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The average cost of 30 selected stocks, used to give an indication of the direction (up or down) of the stock market over time
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down payment
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A portion of the total cost of an item that must be paid at the time of purchase
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FICO
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Credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment
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foreclosure
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the process by which a bank takes possession of a mortgaged property when payments are not being made
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index fund
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A type of mutual fund with a portfolio constructed to match or track the components of a market index such as the S&P 500 Index
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liquidity
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A measure of the ease with which an asset can be converted into money without a significant loss of value
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bear market
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a stock market where share prices are mostly going DOWN for a period of time
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bull market
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a stock market where share prices are mostly going UP for a period of time
