401KA retirement account offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes
Associate’s DegreeA degree granted after two years of study, often by a community or junior college
Account NumberEach bank account has a unique account number. The account number can be found at the bottom of a check. The second range of numbers in the series of numbers at the bottom of a check that tells the bank cashing the check which account to pull the money from.
Annual Percentage RateAnother name for the interest rate charged on the balance of a credit card
Auto InsuranceType of insurance that protects a policyholder in the case of a car accident. Most states require it by law.
Bachelor’s DegreeA degree awarded by a college or university for completing undergraduate studies.
BalanceThe total amount of money in a banking account at any given time.
Bondsbasically a loan, except you are the lender.
budgetplan of how you will spend the money that you make or receive
cash advanceloan of cash you obtain with a credit card
Certificate of Deposittype of savings vehicle in which you put your money away for a certain amount of time to allow your principal to earn interest
charge cardpayment type that works just like credit cards except the balance must be paid in full every month
check cardanother name for a debit card
checking accountA bank account that allows a customer to deposit and withdraw money and write checks. Using this can be safer and more convenient than handling cash.
credit cardA small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit.
credit historyThe complete record of your credit performance. It helps creditors gauge your ability to pay back new debts
credit limitMax amount of money that may be borrowed at one time
credit reportA report on a person’s creditworthiness that includes identifying information, credit cards, late payments, bankruptcies, and savings balances
credit scoreA rating used by credit reporting companies to help lenders decide whether and/or how much credit can be extended to a borrower.
debit cardA bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
direct depositAn automatic deposit of a paycheck without having to take a physical check to the bank.
FAFSA-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.
FDICFederal Deposit Insurance Corporation: a federally sponsored corporation that insures accounts in national banks and other qualified institutions
Federal Income TaxA payroll deduction collected by employers by law and sent to the federal government to support governmental programs.
Federal Student LoansFederal Student Loans offer a fixed interest rate, they charge lower interest rates than private loans, and they do not require a credit check
Federal Work-Study ProgramA 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.
Fixed Ratean interest rate that does not change over time.
Grace PeriodA time period during which no finance charges will be added to your account
Grantgiven to students to help pay for their education and do not have to be repaid
health insurancea type of insurance that covers the cost of medical expenses
homeowners insurancetype of insurance that covers your home as well as your possessions inside it in case of damage or loss
IRAa retirement account designed for individual savers that offers tax savings, but as contribution limits and withdrawal restrictions
IRSGovernment Agency who is responsible for collecting taxes.
IncomeMoney earned from investments and employment.
Interest ratePercentage of amount borrowed to be added to the amount loaned and paid back
InterestA sum paid or charged for the use of money or for borrowing money
Leasea contract granting use or occupation of property during a specified time for a specified payment
Life Insuranceinsurance paid to named beneficiaries when the insured person dies
Minimum Monthly Paymentthe smallest amount you can pay and remain a borrower in good standing
MortgageA loan to purchase a home or other real estate
Payday LendersPayday 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.
Payment HistoryPayments you have made on all credit you have obtained, which affects your credit score.
Pell GrantNeed based federal student aid grant for undergraduate students ranging from $200 to $3750 annually
Perkins Loancommon federal student loan. These loans have a set 5% interest rate and a 10 year repayment period.
principal(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.
Private Student Loansfinanced by private companies rather than government. since these interest rates and fees aren’t capped by government – they cost more.
Renters Insurancea type of insurance that covers the loss of a tenant’s personal property as a result of damage or theft
Required BalanceA certain amount of money that must be kept in your account at all times or you may be penalized.
Routing Numbernine 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
Rule of 72A 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.
Sales TaxA tax on a sale of merchandise or services.
Savings AccountA bank account which accrues interest in exchange for use of the money on deposit.
ScholarshipA sum of money or other aid granted to a student, because of merit, need, etc , to pursue his or her studies
Social Securityguaranteed 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
Stafford LoanA Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education
State Income TaxA payroll deduction collected by employers by law and sent to the state government to support state services.
StockA certificate of ownership in a corporation
Subsidized Student LoanThis is a type of federal student loan on which the government pays the interest that accrues while a student is in school
Unsubsidized Student Loanwill start accruing interest from the time the loan is taken out
W-2The form given to employees detailing the income received and taxes paid over the previous year.
W-4A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.