Banking Vocab by Andrew Haas

Budget

26haasa — 2024-09-26 16:11:32 UTC

Definition: the total sum of money set aside or needed for a purpose

Sentence: Jimmy had a budget of $350 for food.

Discretionary Income

26haasa — 2024-09-26 16:28:21 UTC

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

Sentence: Jimmy's discretionary income is $48.36 after paying his bills, taxes, and food.

Recurring Expenses

26haasa — 2024-09-26 16:33:25 UTC

Definition: a cost that occurs on a regular basis and is necessary for the ongoing operation of a business.

Sentence: Jimmy has recurring expenses on the first of every month, on streaming platforms like disney+ and hulu

Fixed expenses

26haasa — 2024-09-26 16:36:22 UTC

Definition: Expenses, like bills, that must be paid each month and generally cost the same amount

Sentence: Jimmy has fixed expenses to pay every month, which are his bills for his house and cars.

Variable Expenses

26haasa — 2024-09-26 16:39:52 UTC

Definition: costs that change over time

Sentence: Variable expenses that Jimmy buys every 2 weeks are food, and sometimes movie tickets.

Budget Surplus

26haasa — 2024-09-26 16:47:07 UTC

Definition: when income or revenue exceeds expenditures.

Sentence: Jimmy had a budget surplus cause he didn't have enough for food cause he went over by $12.82.

Budget Deficit

26haasa — 2024-09-26 16:50:18 UTC

Definition: The amount by which government expenditure exceeds income from taxation, customs duties, etc, in any one fiscal year

Sentence:

Liquidity

26haasa — 2024-09-27 16:02:42 UTC

Definition: the ability or ease with which assets can be converted into cash.

Sentence: a firm may be unable to pay unless it has spare liquidity

FDIC

26haasa — 2024-09-27 16:05:52 UTC

Definition: an independent agency created by Congress to maintain stability and public confidence in the nation's financial system.

Credit Union

26haasa — 2024-09-27 16:09:19 UTC

Definition: a not-for-profit financial institution that accepts deposits, make loans, and provides a wide array of other financial services and products.

Sentence: Jimmy has a Credit Union in his town.

Checking Account

26haasa — 2024-09-27 16:11:19 UTC

Definition: a bank account where you can make cash withdrawals or deposits

Sentence: Jimmy had to take money out of his checking account to pay someone.

ATM

26haasa — 2024-09-27 16:13:01 UTC

Definition: an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller.

Sentence: Jimmy had to use the ATM, to get money to give to someone for their birthday.

Debit Card

26haasa — 2024-09-27 16:14:18 UTC

Definition: a payment card that makes payments by deducting money directly from a consumer's checking account, rather than on loan from a bank or card issuer.

Sentence: Jimmy had to use his debit card to pay for dinner after his date with Abby

Savings Account

26haasa — 2024-09-27 16:16:23 UTC

Definition: an account at a bank or credit union that is designed to hold your money.

Sentence: Jimmy has $9,704.82 in his savings account for a trip to Japan.

Money Market Deposit Account

26haasa — 2024-09-27 16:17:38 UTC

Definition: Designed to help account holders meet their short-term savings goals,

Sentence: Jimmy has been uses MMDA to meet his short-term goals in life.

APY

26haasa — 2024-09-27 16:19:49 UTC

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

Sentence: Jimmy's APY is higher than his girlfriends Abby's APY.

Nominal Interest Rate

26haasa — 2024-09-27 16:21:18 UTC

Definition: the interest rate before taking inflation into account

Sentence: Jimmy's Nominal Interest Rate is $492.73.

Real Interest Rate

26haasa — 2024-09-27 16:22:45 UTC

Definition: an interest rate that has been adjusted for inflation

Sentence: Jimmy's Real Interest Rate is $269.72

Fee Schedule

26haasa — 2024-09-27 16:23:55 UTC

Definition: a comprehensive and organized list of fees or charges associated with specific products or services a business or organization provides

Sentence: Jimmy was put in charge of the Fee Schedule for the company he works for

Signature Card

26haasa — 2024-09-27 16:25:20 UTC

Definition: a document that financial institutions use to authenticate a customer's signature for personal and business bank accounts.

Sentence: Jimmy had to put his signature on a Signature Card.

Emergency Fund

26haasa — 2024-09-27 16:27:04 UTC

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

Sentence: Jimmy has $2,681.72 in his Emergency Fund just incase if something happened.

Bank Statement

26haasa — 2024-09-27 16:28:09 UTC

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

Sentence: Jimmy got his Bank Statement in the mail and seen how much he spent in the past 3 months.

26haasa — 2024-09-27 16:29:06 UTC

Definition: a numerical code issued with a payment card that is required to be entered to complete various financial transactions

Sentence: Jimmt had fully remembered his PIN for his cards just incase.

Overdraft/Overdrafting

26haasa — 2024-09-27 16:30:25 UTC

Definition: occurs when there isn't enough money in an account to cover a transaction or withdrawal, but the bank allows the transaction anyway.

Sentence: Jimmy had a Overdraft happen to him cause he was $3.72 short.

Nonsufficient funds fee

26haasa — 2024-09-27 16:31:56 UTC

Definition: a bank fee you might incur if you don't have enough money in your account to cover a transaction.

Sentence: Jimmy had to pay a Nonsufficient Funds Fee cause he didn't have enough money for something

Fraud

26haasa — 2024-09-27 16:34:10 UTC

Definition: when someone deprives you of your money, capital, or otherwise harms your financial health through deceptive, misleading, or other illegal practices.

Sentence: Jimmy closed his card after losing it before someone was able to use it and commit Fraud on him.

FTC

26haasa — 2024-09-27 16:36:18 UTC

Definition: protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.

Identity Theft

26haasa — 2024-09-27 16:38:02 UTC

Definition: unauthorized use or attempted use of an existing account

Sentence: Jimmy closed his account before someone could do Identity Theft.