Banking Vocabulary by Lucas Smothers

Budget

27smothersl — 2024-09-26 14:32:24 UTC

Definition - An itemized allotment of funds

Sentence - I have to budge with my money at the grocery store

Discretionary Income

27smothersl — 2024-09-26 14:39:38 UTC

Definition - The amount of money an individual has after paying for taxes and necessities.

Sentence - The discretionary income of an American household would be lower then most other places in the world because of the excruciating amount of food we be eating

Recurring Expenses

27smothersl — 2024-09-26 14:45:32 UTC

Definition - costs that are paid on a regular basis that are necessary for the ongoing operation of a business, such as rent, subscription services, utilities, etc.

Sentence - The household has very many recurring expenses

Fixed Expenses

27smothersl — 2024-09-26 14:50:42 UTC

Definition - recurring expenses that nearly never change

Sentence - car payments are fixed expenses

Variable Expenses

27smothersl — 2024-09-27 14:14:42 UTC

Definition - costs that vary in proportion to the goods or services that a business produces

Sentence - materials have variable expenses

Budget Surplus

27smothersl — 2024-09-27 14:18:21 UTC

Definition - when a government or corporation's revenue is higher than its spending

Sentence - I have a budget surplus of $600

Budget Deficit

27smothersl — 2024-09-27 14:21:37 UTC

Definition - occurs when you spend more money than you receive during a defined period

Sentence - I'm in a budget deficit because I'm irresponsible with my money

Liquidity

27smothersl — 2024-09-27 14:27:18 UTC

Definition - a measure of how easily an asset can be converted to cash or how easily security can be bought or sold without affecting its price

Sentence - The company has a low liquidity so they're about to go bankrupt

FDIC

27smothersl — 2024-09-27 14:34:46 UTC

FDIC = Federal Deposit Insurance Corporation

Definition - an independent agency of the United States government that insures deposits in banks and savings

Sentence - Every reputable bank in the United States is insured by the FDIC

Credit Union

27smothersl — 2024-09-27 14:40:27 UTC

Definition - A nonprofit-money making cooperative whose members can borrow from pooled deposits at low interest rates

Sentence - I used credit union because of the better interest rates

Checking Account

27smothersl — 2024-09-27 14:42:33 UTC

Definition - a banking account of which you can withdraw, deposit, and transition money

Sentence - I used my checking account in order to pay my bills

ATM

27smothersl — 2024-09-27 14:45:25 UTC

Definition - a computerized electronic machine that performs basic banking funds

Sentence - I saw a gumball machine with them sticky hands so i got quarters from the ATM

Debit Card

27smothersl — 2024-09-27 14:49:29 UTC

Definition - a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase

Sentence - I used my debit card to pay for my groceries

Savings Account

27smothersl — 2024-09-27 14:53:12 UTC

Definition - a deposit account held at a bank or financial institution allowing customers to save money while earning interest

Sentence - I have an excruciating amount of money in my savings account

Money Market Deposit Account

27smothersl — 2024-09-27 14:56:29 UTC

Definition - a type of savings account that offers higher interest rates than regular traditional savings accounts

Sentence - I use a MMDA rather then anything else because I feel that it is better

APY (Annual Percentage Yield)

27smothersl — 2024-09-27 16:40:43 UTC

Definition - The interest rate earned on an investment in one year, including compound interest

Sentence - my APY is lower than most other peoples

Nominal Interest Rate

27smothersl — 2024-09-27 16:44:16 UTC

Definition - the interest rate on a load or investment that doesn't account for inflation, fees, or compounding

Sentence - My bro Marl has a 6% nominal interest rate

Real Interest Rate

27smothersl — 2024-09-27 16:45:59 UTC

Definition - an interest rate that has been adjusted for inflation

Sentence - Marls real interest rate in higher then his nominal interest rate

Fee Schedule

27smothersl — 2024-09-27 16:49:15 UTC

Definition - a list of fees used to reimburse providers for services

Sentence - I have a fee schedule for Medicare

Signature Card

27smothersl — 2024-09-27 16:52:31 UTC

Definition - a document that financial institutions used to verify a customer's signature for their bank account

Sentence - they used my signature card to verify my signature

Emergency Funds

27smothersl — 2024-09-27 16:54:25 UTC

Definition - a dedicated savings account or lump sum of cash that can be used to cover unexpected expenses or financial emergencies

Sentence - I needed emergency funds cause someone rear ended me at a stop light

Bank Statement

27smothersl — 2024-09-30 14:37:12 UTC

Definition - a list of all transactions for a bank account over a set period, usually monthly

Sentence - the bank gave me a bank statement and it turned out that someone went into my account, and purchased 1,400 copies of the Emoji Movie

27smothersl — 2024-09-30 14:40:58 UTC

Definition - a numeric or alphanumeric code that's used to authenticate a person in finance transactions

Sentence - the bank makes me enter a PIN before making a transaction

Overdraft/Overdrafting

27smothersl — 2024-09-30 14:46:09 UTC

Definition - when a person spends more money than they have in their account and the bank still pays the transaction

Sentence - I overdrafted my bank account and now I have less than nothing in my account anymore

Non Sufficient Funds Fee

27smothersl — 2024-09-30 14:49:25 UTC

Definition - A charge that a bank or credit union may impose on a customer when they attempt to make a transaction that exceeds their balance

Sentence - I was hit with a non sufficient funds fee, and now my credit score is below a 350

Fraud

27smothersl — 2024-09-30 14:52:09 UTC

Definition - wrongful or criminal deception intended to result in financial or personal gain

Sentence - she was found guilty of bank fraud

FTC

27smothersl — 2024-09-30 15:02:54 UTC

Definition - (Federal Trade Commission) enforces a variety of antitrust and consumer production laws affecting virtually every area of commerce

Sentence - The FTC is investigating the company.

Identity Theft

27smothersl — 2024-09-30 15:06:36 UTC

Definition - the fraudulent acquisition and use of a person's private identifying information, usually for financial gain.

Sentence - my bro marl had committed identity theft.