4-Year College/University

an educational institution that provides bachelor’s degrees, also referred to as an undergraduate institution

401(k)

 a retirement savings plan offered by many American employers that has tax advantages for the saver. It is named after a section of the U.S. Internal Revenue Code. 

50/30/20 Rule

a budgeting system where 50% of your budget is spent on needs, 30% on wants, and 20% on saving and debt reduction 

529 Plans

a tax-advantaged account that can be used to pay for qualified education costs, including college, K-12, and apprenticeship programs. 

AP Classes

classes for high school students that have been approved by the College Board and affiliated higher-level institutions as worthy of college credit if a student achieves a certain score on an exam 

Accidental & Dismember

a type of insurance that pays benefits in the event of a fatal accident or serious injury  

Actual Cash Value Coverage

a policy that will provide funds in a claim based on the actual value of the item, taking into account wear and tear and depreciation

Add-ons

an additional item or feature that complements or enhances the main product or service

Adjustable Rate Mortgage (ARM)

a home loan with interest rates that may change; also referred to as a variable-rate mortgage

Advertisement

something designed to promote a product to a target audience, crafted to capture attention and persuade potential customers to take a desired action such as making a purchase

Advertising

promoting a product to a target audience in a way to capture attention and persuade potential customers to take a desired action such as making a purchase

Affordable Care Act (ACA)

the comprehensive health care reform law enacted in March 2010 (sometimes known as ACA, PPACA, or “Obamacare”) to make health insurance more affordable and available to more people

Age of Retirement

This is when you would like to retire.  A common age to retire is 65 years old. 

Annual Fee

amount charged per year to utilize a credit card. Not all credit cards have annual fees. 

Annual Percentage Rate (APR)

interest on a loan or line of credit 

Annual Rate of Return (ROR)

the amount earned on an investment over a 12-month period and is usually expressed as a percentage. 

Annuity

a financial product where an individual makes regular payments or investments over time in exchange for a stream of payments or a lump sum payout at a later date, often used for retirement income.

Apprenticeship

an agreement between a student and a skilled tradesperson, during which the student learns skills and knowledge from their employer. 

Asset Class

a group of securities or investments that have similar financial characteristics and behave similarly in the marketplace.

Asset Class Investment

investments that utilize real estate and government bonds.  

Assets, Financial

any resource with economic value that an individual, company, or institution owns or controls, which can be used to generate future benefits such as income or value appreciation. Tangible financial assets or "Real Assets" include physical items like real estate or commodities, while intangible financial assets include securities like stocks and bonds, which represent ownership or claims to future cash flows

Associate’s degree

Usually requires two to three years of full-time academic study beyond high school. 

Auto Loan

An auto loan is a type of loan you get from a bank or a lender to help you buy a car. The car serves as collateral, which means if you can't make the payments, the lender might take the car back.

Auto liability coverage

a type of auto insurance policy that protects the insured when they are in an accident from having to pay for the other person’s medical expenses or property. 

Bachelor’s degree

Generally requires four to five years of full-time academic study beyond high school. 

Balance (on a credit card)

the net funds available after all deposits and/or credits have been balanced with any charges or debits. 

Bandwagon

an advertising technique that convinces you that everyone else is interested in a product and you should be too  

Bankruptcy

a legal process that happens when someone or a business can't pay back the money they owe to others. It may erase some or all of the debts, but there are consequences, like having trouble getting loans or credit in the future.

Banks

Financial Institutions that take in funds (deposits), allow for withdraws on those funds on demand, loan money out to businesses and people who qualify, and offer other financial services 

Base Pay

the fixed compensation an employee receives for their work, excluding bonuses, benefits, and other incentives

Bear Market

a period of time when stock prices are consistently falling and people feel pessimistic about the market

Benefits (Package)

additional perks or advantages provided to employees beyond their salary, often including healthcare, retirement plans, and paid time off. 

Bonds

debt securities issued by governments or corporations, where the issuer borrows money from investors and promises to repay the principal amount along with periodic interest payments over a specified period. 

Bonus

Additional payment or reward given to employees, typically as an incentive for meeting performance targets or achieving specific goals. 

Budget

an estimate of income and expenses for a set period of time

Budget categories

When building the budget, it may be helpful to start with a group of similar budget items that are most important to you, like housing or transportation. 

Bull Market

a market condition in which stock prices are rising constantly for months or even years at a time

Bundle pricing

impulse buying is encouraged when prices are low or related to other purchases. 

Bureau of Labor Statistics

an agency in the U.S. Department of Labor that collects, analyzes, and provides data relating to labor market data such as employment, wages, and job availability 

Business Loan

loans offered to businesses in order to start or expand a business. 

Buying (a home)

finding a property, securing financing, and purchasing a home to own 

CD Account

“Time Deposits” that earn interest on an amount for a specific period of time. 

Call to Action

a marketing prompt that encourages you to take a specific action like an ad that says "Buy Now," "Sign Up," or "Learn More."

Career

A job performed by a person for a long portion of time, usually associated with growth opportunities. 

Career Cluster

a grouping of occupations that share common features, skills, and characteristics. It's a way to organize and categorize careers based on similarities in the types of work involved, the skills and knowledge required, and the pathways for advancement.

Cash Advances

  a short-term loan against your credit card. 

Cash Management Account

An account to hold cash that is used to invest in a taxable brokerage account or a retirement account. 

Cash Purchase (Auto)

paying for a car in cash, which means you fully own the car and all expenses associated with it. 

Cash/Debit

money that is accessible and ready to be spent or saved at any moment 

Certificate of Deposit (CD)

a financial product where an individual deposits a sum of money with a bank for a specified period, in exchange for a fixed interest rate higher than regular savings accounts.

Charitable Giving

the action of donating items or money to someone or an organization with no benefit to the giver or expectation of a benefit. 

Charity Scam

scams that involve posing as an existing charity or creating a fictitious charity name to solicit donations from unwary individuals.

Checking Account

a bank account that allows depositors to access funds easily for transactions, such as payments, withdrawals, and transfers, typically through checks, debit cards, or electronic transfers

Checks

a piece of paper that you use to pay someone money from your bank account; it directs your back to transfer money to the holder.

Children’s Health Insurance Program (CHIP)

a government program that provides health insurance to kids whose parents make too much money to qualify for Medicaid (a health program for very low-income families) but can't afford private health insurance.

Coinsurance

a percentage of money paid by the insured for a medical service after they have paid the deductible 

Collateral

something of value that you agree to give to a lender if you can't pay back a loan.

Collectibles

items of personal interest or value that people acquire and preserve for their aesthetic, historical, or monetary significance.

Collections

refers to the process of getting money that is owed to someone, usually after payments have been missed or are overdue.

Collision coverage

a type of car insurance that helps pay for repairs or replacement of your car if you're in an accident, no matter who is at fault.

Commercial Real Estate Investing

buying, owning, or managing properties that are used for business purposes, rather than for people to live in.

Commission

a percentage-based compensation paid to employees based on the value of sales they generate or services they provide. 

Commodities

raw materials or primary agricultural products that can be bought and sold, typically traded on commodity exchanges, and include goods like oil, gold, wheat, and coffee.

Community College

a local college that helps students gain skills necessary for the workforce or four-year college. 

Commuting

traveling to and home from work regularly 

Compensation (Package)

the combination of salary, wages, bonuses, benefits, and any additional perks and incentives that an employer offers to an employee in exchange for their work or services.

Compound Interest

the interest you earn on both the money you initially deposited (called the principal) and the interest that has already been added to it.

Comprehensive coverage

a type of car insurance that helps pay for damage to your vehicle that isn't caused by a collision or accident, including things like theft, vandalism, or natural disasters

Conforming Loan

mortgages that can be purchased by government-backed entities that follows specific guidelines set by those organizations.

Consumable goods

goods that must be replaced often because they are quickly used up 

Consumer

a person that buys or utilizes goods and services

Consumer rights

protections for consumers buying goods or services 

Conventional 97

a federal mortgage program that lets you borrow 97% of the home’s value, requiring only a 3% down payment from first time buyers

Conventional Mortgage

loans that are obtained from banks, mortgage lenders, or credit unions. 

Copay

money paid by the insured to a doctor or specialist for a medical service 

Copayment

An amount you pay as your share of the cost for a medical service or item, like a doctor's visit.  

Corporation

a business structure that allows for the company to be completely separate from its owners and offers the highest level of legal protection. 

Cost

the amount of resources, such as money, time, or effort, required to acquire or achieve something. 

Credit Card

a card or account issued by a bank or business, allowing the holder to purchase goods or services on credit (borrow money and pay for that purchase at a future date). 

Credit Limit

the total dollar amount you can spend on your credit card. 

Credit Unions

a non-profit institution that accepts deposits, makes loans, and offers other financial services to members. 

Credit/Borrowing

money that is loaned to an individual with interest 

Credits

these reduce the amount of taxes you owe dollar for dollar. 

Creditworthiness

a measure of how likely you are to pay back borrowed money on time. Lenders, like banks or credit card companies, look at your creditworthiness when deciding whether to give you a loan or a credit card.

Cross Sell

a marketing strategy where a business encourages you to buy additional products or services that are related to what you are already buying.

Debt Collection Scam

scammers who pose as debt collectors to get you to pay for debts you don't owe or ones you’ve already paid. 

Debt Consolidation Loan

a loan that combines several financial debts like credit cards into one monthly payment. 

Debt Settlement and Debt Relief Scam

companies that promise individuals debt reduction or forgiveness for a debt that they owe, often resulting in unfavorable terms or a lower credit score.

Deductible

The amount you owe for claims before the insurance or plan begins to pay. 

Deduction

an amount that can be removed from taxes owed because of an IRS allowance 

Deductions

expenses subtracted from gross income that can help reduce your tax bill. 

Delinquencies

situations where you fail to pay a bill or financial obligation

Dependents

a child or individual that is dependent on the tax filer for housing or financial support. 

Deposit

A sum of money placed or kept in a bank account, usually to gain interest. 

Depreciation

a term used to describe how something loses its value over time.

Disability Insurance

A type of insurance that provides financial security in case of disabling injury or illness.  

Doctoral or professional degree

Typically requires a minimum of three years of full-time academic study beyond a bachelor's degree. 

Donor

a person who donates money to a nonprofit organization or other cause. 

Down Payment

an amount of money required up front in order to secure a mortgage for a home. 

Dual Enrollment

an opportunity that allows high school students to take college courses while still in high school, meaning you can earn both high school credits and college credits at the same time.

Durable goods

items you buy that are meant to last a long time, usually for several years, because they don't wear out quickly or get used up. Ex: car, mattress, gaming system.

Education Zone

a classification system used by the Bureau of Labor and Statistics to categorize occupations based on the level of education typically required to enter those professions.

Employee Assistance Program (EAPs)

services providing employees with confidential counseling and referral services relating to personal or work-related concerns. 

Employer Match

This is the percentage of your salary that your employer will match. 

Employer Match Ends

This is the maximum percent of your salary matched by your employer regardless of the amount you decide to contribute.   

Equity (In a Home)

the value of a home minus the amount owed on the house 

Equity Investment

money that is invested in a company by purchasing shares of that company in the stock market. 

Escrow

an account used to pay property taxes. This money is collected by the lender in every monthly mortgage payment and is paid annually or semiannually to the local government. 

Estate planning

the process of arranging, distributing, and disposing of one’s assets after their death. 

Exemptions

dollar amounts that reduce a tax liability based on personal or dependent situations. 

Expenses

The cost required for something, money owed or spent; bills

FAFSA

stands for the Free Application for Federal Student Aid, a form that students fill out to apply for financial help for college. Students can become eligible for different types of financial aid, like grants (which you don’t have to pay back), loans (which you do have to pay back), and work-study programs (where you can work part-time to help pay for school).

FDIC (Federal Deposit Insurance Corporation)

An independent agency created by Congress to insure bank deposits made by individuals in order to establish trust in the banking industry. 

FHA Loan

government-backed loans that are insured by the Federal Housing Authority. 

FICO Score

a specific type of credit score that tells lenders how reliable you are at paying back money you borrow.

Federal Reserve (or The Fed)

the central bank of the United States. It helps control the country's money and financial systems to keep things running smoothly- think of it as the bank for banks. The Fed helps ensure that the economy stays healthy and that people feel confident about their money.

Federal Trade Commission (FTC)

a federal organization created to protect buyers and sellers from fraud and scams.

Filing Status

the category in tax reporting tied to marital status that will determine which form is used when filing. 

Financing

taking out a loan to pay for a car, instead of paying the full price all at once. When loan payments are complete, the car title belongs to you.

Fixed Expenses

expenses that do not change

Fixed Income Investments

an investment approach focused on preservation of capital and income; securities that pay a fixed interest or dividend income over a specified period, typically in the form of bonds or certificates of deposit (CDs). 

Fixed Interest Rate

an interest rate on a loan or mortgage that stays the same for the entire time you’re paying it back.

Fixed-Rate Mortgage

mortgages that have interest rates that do not change. 

Fixed-income Investment

an investment approach focused on preservation of capital and income; securities that pay a fixed interest or dividend income over a specified period, typically in the form of bonds or certificates of deposit (CDs). 

Freelancing

The practice of working independently clients on a project basis, without long-term employment commitment 

Fringe Benefits

extra perks or rewards that employees receive on top of their base pay (i.e. tuition assistance, childcare, employee discounts/perks, stock options, use of company-owned vehicle, remote work/flexible scheduling opportunities)

Gap Year

a set amount of time after high school before college or the workforce. 

Goals

an aim or desired result 

Goods

any physical object where there is a demand to purchase 

Government Bond

investments that have either a 20-year or 30-year maturity date. 

Government Career

work performed for a governing body and ​​​​compensated for. 

Government Exchange

an online marketplace created by the government where people can shop for and buy health insurance.

Government Intervention

Actions that are either direct or indirect by the federal government that affect the market or individual investments in a positive or negative way 

Government-Backed Loans

loans that the government guarantees to repay if the borrower can't.

Graduate School

a place where you can continue your education after finishing your bachelor’s degree (which you usually complete in a 4 year college). It helps you specialize further in a subject or field you’re interested in.

Grandparent Scams

a scam call from someone who poses as a grandchild or relative needing financial help and asks the victim to wire or send money.

Grantee

the recipient of the asset or property. 

Grantor

the issuer of the asset or property. 

Grants

a financial award given to a select applicant who meets certain criteria

Gross Income

the value of all income sources before tax deductions; income sources include wages, salaries, bonuses, interest, dividends, rental income, etc.

Gross Pay

the total amount of money an employee earns before deductions, such as taxes and benefits, are taken out; often the posted salary or the amount you calculate with an hourly wage. 

Guaranteed Income

a financial product that provides you with a steady and predictable flow of income over a certain period of time, often for the rest of your life.

Guaranteed Income Insurance

a financial product that provides you with a steady and predictable flow of income over a certain period of time, often for the rest of your life.

Guaranteed/Extended Replacement

a type of insurance coverage for your home that promises to pay the full cost to rebuild or repair your house if it's damaged or destroyed, even if that cost is higher than the amount you originally insured it for.

HUD (Department of Housing and Urban Authority)

a federal department that helps individuals and families purchase low-cost housing. 

Health Savings Account (HSA)

a special savings account that you can use to save money for medical expenses. The money deposited isn't taxes, can earn interest, and is available to use at any time for qualified expenses.

Health insurance

a plan that helps you pay for medical care. You submit monthly payments to the insurance company and when you're sick or need a check-up, instead of paying all the costs yourself, your health insurance will cover part or all of the expenses.

Health maintenance organizations (HMOs)

a type of health insurance plan that focuses on providing affordable healthcare through a network of doctors, hospitals, and other healthcare providers. They typically offer lower premiums and copays, but you have to use a doctor within the insurance network.

Hedge Fund

a fund where a group of experts pool your money with other investors and use various strategies to try to make a lot of money while also trying to protect against big losses.

Hero-Endorsement

ad that uses famous or educated individuals (doctors, teachers, scientists)  

High Deductible Health Plan (HDHP)

a type of health insurance that has a higher deductible but lower montly costs than regular insurance plans. The deductible is the amount of money you have to pay out of your own pocket for healthcare services before your insurance starts helping with the costs.

High Yield Savings Account

Accounts that are usually found online and offer larger interest rates on savings (Often used as a general term to describe many types of accounts that earn higher interest rates). 

Home Equity Loan/HELOC

a loan that uses your home as collateral and often results in lower interest rates.  

Home Insurance

an insurance that covers losses and damage to your property and residence, such as a roof leak or fire.  

Home Loan

a large amount of money that someone borrows from a bank or a financial institution to buy a house, also known as a mortgage

Homeready Program

a federal program that allows individuals and families to obtain assistance on their down payment. 

Homestead Exemption

a discount on your property taxes just because it's your main home, helping you keep more money in your pocket

Hourly Pay

payments made at a determined rate for each hour worked during a work week. 

House Flipping

purchasing property and renovating it for resale at a higher price 

INFORM Consumers Act

a set of rules that helps make sure the sellers you buy from online are real and trustworthy, making your online shopping experience safer.

IRA (Individual Retirement Account)

a type of retirement account that allows individuals to contribute to their future retirement savings. 

Imposter Scams

scams that involve someone posing as a trustworthy civil service worker such as a sheriff or local government employee asking you to send or donate money.

Impulse buying

quick, on-the-spot decisions to buy something because it catches your eye or you feel like it, rather than thinking it through.

Income

Money received, normally for work performed

Income taxes

taxes paid to the federal government taken from sources of income like employment, self-employment, or investments. 

Indexed Universal Life Insurance (IULI)

A type of insurance that provides potential for cash value growth through investments. 

Indexed universal life

a type of life insurance that not only provides money to your family if you pass away but also allows you to save and grow your money over time.

Inflation

The rate of price increase over a given time period. 

Insider trading

when someone buys or sells stocks or other investments based on information that is not available to the public

Installment

a way to repay borrowed money gradually by making smaller, regular payments, making the debt easier to handle.

Insurance

a contract provided by a company where they agree to pay some or all of the cost of an unexpected situation, in return for periodic payments.  

Insurance investments

contracts between individuals and an insurance company that results in a return based on a number of variables. 

Interest

the amount a borrower is charged for a loan, usually expressed as a percentage  

Interest Rate/Annual Percentage Rate

a number that tells you how much extra money you'll have to pay in interest if you don't pay off your credit card bill in full every month.

Internal Revenue Service (IRS)

the federal regulatory agency charged with collecting taxes and processing tax forms.  

Investment

A mechanism or platform used for generating future income. 

Investment Industry

a career field in the finance industry involving working with stocks, investments, and stock market regulation. 

Investment ​Earnings

The amount of profited funds from an investment. 

Job Security

the state of having employment that is unlikely to be dismissed 

Jumbo Loan

a big loan that lets you borrow more money to buy a really expensive house that costs more than the usual limits for regular home loans.

Land Speculation

when people buy land hoping that its value will go up in the future so they can sell it for more money and make a profit.

Leasing

essentially, you're borrowing/renting a car from a dealership for a few years, making monthly payments, and then returning it when the lease is up.

Less than a high school diploma

A formal educational credential, such as a high school diploma or postsecondary certificate, is not typically required. 

Liability

a coverage that protects individuals against lawsuits caused by injuries on your property. 

Liability & Umbrella Insurance

a type of insurance that extends current coverage to include a wider range of claims 

Life Insurance

a type of insurance that provides benefits following the death of the insured. 

Life Insurance (as part of a Benefits Package)

premium costs paid by the employer to an insurance company that provides benefits following the death of the insured (in this case, the employee)

Life insurance trusts

a type of contract that distributes the proceeds of a life insurance policy to members of a trust depending on how it is set up. 

Limited Liability Company (LLC)

a type of partnership that allows the founders of a business to keep their personal assets separate from business assets. 

Line of Credit

a flexible way to borrow money. It's like having a stash of money that you can dip into whenever you need it, up to a certain limit, and you only pay interest on the amount that you borrow.

Liquidity

the ease of access for an individual to obtain their money. 

Loan

a sum of money that must be paid back, usually with interest. 

Loan term

the time left until the principal is paid. Consumers usually choose between a 30-year or a 15-year loan term. 

Long-Term Care

a type of insurance that covers a person over the age of 65 who needs assistance to perform daily tasks and care 

Long-Term Rental Investments

purchasing homes for the purpose of renting them to individuals long-term 

Long-term goal

an overarching objective that one aims to achieve over an extended period, usually spanning several years or more, often requiring significant planning and effort. 

Major Life Event

an event such as getting married, losing healthcare coverage, or adopting a child that will enable you to make changes to your health care plans and add or drop eligible dependents from coverage. 

Market Manipulation

when a person or group tries to unfairly influence the price of stocks or other financial investments to make money in a dishonest way.

Master’s degree

Usually requires one to two years of full-time academic study beyond a bachelor's degree. 

Maturity

the date when a financial instrument, such as a bond or a certificate of deposit, becomes due for repayment by the issuer, or when it reaches the end of its term.