Banking Vocab by Reece Blair

Budget

27blairr1 — 2024-09-26 16:23:53 UTC

Definition: proactive approach to organizing your finances.

Sentence: I budget at the end of the month.

Discretionary Income

27blairr1 — 2024-09-26 16:29:32 UTC

Definition: money left over after a person pays their taxes and pays for essential goods and services like housing and food.

Sentence: I have $298 Discretionary Income.

Recurring Expenses

27blairr1 — 2024-09-26 16:36:09 UTC

Definition: a cost that occurs on a regular basis.

Sentence: My mother(Queen Elizabeth) has Recurring Expenses on her house bills.

Fixed Expenses

27blairr1 — 2024-09-26 16:41:04 UTC

Definition: those that remain constant within your budget.

Sentence: My rent is a Fixed Expense.

Variable Expenses

27blairr1 — 2024-09-26 16:49:36 UTC

Definition: expenses that change depending on how often you use a product or service

Sentence: My water bills is a Variable Expense.

Budget Surplus

27blairr1 — 2024-09-26 16:53:47 UTC

Definition: when an entity, such as a government, business, or individual, brings in more money than it spends in a given period.

Sentence: I got a Budget Surplus while selling lemonade.

Budget Deficit

27blairr1 — 2024-09-27 11:50:44 UTC

Definition: occurs when a government, business, or individual spends more than it receives in revenue over a specific period of time.

Sentence: When I was selling lemonade, I had a Budget Deficit

Liquidity

27blairr1 — 2024-09-27 11:55:06 UTC

Definition: the ability of a company or an individual to settle short-term liabilities easily and on time.

Sentence: the banks closed, causing serious liquidity problems for smaller companies

FDIC(Federal Deposit Insurance Corporation)

27blairr1 — 2024-09-27 11:59:30 UTC

Definition: an independent agency of the United States government that insures deposits at banks and savings associations.

Sentence: All banks in the USA are insured by the FDIC

Credit Union

27blairr1 — 2024-09-27 12:01:24 UTC

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

Sentence: My bank is a Credit Union

Checking Account

27blairr1 — 2024-09-27 12:09:41 UTC

Definition: an account at a bank against which checks can be drawn by the account depositor

Sentence: I went to go put money in my checking account

ATM(Automated Teller Machine)

27blairr1 — 2024-09-27 12:12:08 UTC

Definition: allows people to conduct banking transactions without the need for a bank teller

Sentence: I withdrew some money from the ATM

Debit Card

27blairr1 — 2024-09-27 14:57:21 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 the groceries

Savings Account

27blairr1 — 2024-09-27 16:06:00 UTC

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

Sentence: I deposited money into my savings account

Money Market Deposit Account

27blairr1 — 2024-09-27 16:12:19 UTC

Definition: a type of interest-bearing account that combines features of checking and savings accounts

Sentence: I have had my Money market deposit account for at least a year now and I LOVE it

APY (Annual Percentage Yield)

27blairr1 — 2024-09-27 16:17:47 UTC

Definition: is the interest rate earned on an investment in one year, including compounding interest.

Sentence: When comparing savings accounts, it's important to consider the annual percentage yield (APY) to see which one will earn you the most interest over time.

Nominal Interest Rate

27blairr1 — 2024-09-27 16:21:37 UTC

Definition: the interest rate on a loan or investment before adjusting for inflation, compounding, or other factors.

Sentence: A time deposit at the bank offers a 4% nominal interest rate

Real Interest Rate

27blairr1 — 2024-09-27 16:25:46 UTC

Definition: an interest rate that has been adjusted for inflation

Sentence: A consumer loan has a real interest rate of 6%, and the expected inflation rate is 2%.

Fee Schedule

27blairr1 — 2024-09-27 16:29:58 UTC

Definition: is a list of maximum fees for services or products, and is used by healthcare providers and insurance companies to determine costs and reimbursement rates

Sentence: The early libraries offered a small range of services, and had a fee schedule.

Signature Card

27blairr1 — 2024-09-27 16:33:31 UTC

Definition: is a document that financial institutions keep on file to verify a customer's signature and other account information

Sentence: I filled out my signature card fully

Emergency Fund

27blairr1 — 2024-09-27 16:36:59 UTC

Definition: stash of money set aside to cover the financial surprises life throws your way

Sentence I have an emergency fund of $1000

Bank Statement

27blairr1 — 2024-09-27 16:40:54 UTC

Definition: a printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account

Sentence: I have now received a bank statement showing our final balance

PIN(Personal Identification Number)

27blairr1 — 2024-09-27 16:45:22 UTC

Definition: is a numeric or alpha-numeric code used to authenticate a user's identity and access a computer or other system

Sentence: my PIN code is very easy to guess

Overdraft/Overdrafting

27blairr1 — 2024-09-27 16:48:07 UTC

Definition: when a person spends more money than they have in their bank account, but the bank still allows the transaction to go through

Sentence: The only thing he was missing out on was a huge overdraft

Non-Insufficient Funds

27blairr1 — 2024-09-27 16:50:29 UTC

Definition: is a charge that a bank or credit union may charge when a customer attempts to make a transaction that exceeds their account balance

Sentence: My bank has informed me that this check was returned unpaid due to non-sufficient funds

Fraud

27blairr1 — 2024-09-27 16:53:01 UTC

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

Sentence: He was found guilty of bank fraud

FTC(Federal Trade Commission)

27blairr1 — 2024-09-27 16:55:58 UTC

Definition: a law enforcement agency that protects consumers and promotes competition by enforcing antitrust and consumer protection laws

Sentence: The company is being investigated by the FTC

Identity Theft

27blairr1 — 2024-09-27 16:57:39 UTC

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

Sentence: How can we protect ourselves against identity theft