Banking Vocab by Tavian Neusom

Budget

27neusomt — 2024-10-01 12:45:58 UTC

an estimate of income and expenditure for a set period of time.

Discretionary Income

27neusomt — 2024-10-01 12:47:24 UTC

the amount of money an individual or household has left after paying taxes and necessities, such as food, housing, and clothing. This money can be used for spending, investing, or saving, and includes money spent on vacations, luxury items, and other nonessential goods and services.

Recurring Expenses

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A recurring charge, or recurring expense, is a cost that occurs on a regular basis and is necessary for the ongoing operation of a business.

Fixed Expenses

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costs that typically remain the same in price and frequency

Variable Expenses

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

Budget Surplus

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

Budget Deficit

27neusomt — 2024-10-01 12:52:22 UTC

when a government spends more money than it collects in revenue during a specific period.

Liquidity

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an economic concept that refers to how easily an asset or security can be converted into cash without affecting its market price. It can also refer to a company's ability to meet short-term liabilities on.

FDIC

27neusomt — 2024-10-01 13:00:55 UTC

The Federal Deposit Insurance Corporation. a US government agency that protects bank depositors' insured deposits if their bank fails.

Credit Union

27neusomt — 2024-10-01 13:00:58 UTC

a not-for-profit financial cooperative that is owned by its members and is democratically controlled.

Checking Account

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a type of deposit account that is considered a liquid fund.

ATM

27neusomt — 2024-10-01 13:01:04 UTC

automated teller machine. an electronic telecommunications device that enables customers of financial institutions to perform financial transactions, such as cash withdrawals, deposits, funds transfers, balance inquiries or account information inquiries, at any time.

Debit Card

27neusomt — 2024-10-01 13:01:06 UTC

a payment card that allows a cardholder to make purchases and withdraw money from their bank account. Debit cards are similar to credit cards, but they differ in that the money is deducted directly from the cardholder's account, rather than borrowed from a bank or card issuer.

Savings Account

27neusomt — 2024-10-01 13:01:09 UTC

A savings account is a deposit account that allows individuals to save money and earn interest while also providing flexibility to withdraw or deposit funds. Savings accounts are often used to accumulate funds for short or long-term financial goals, such as emergencies, a child's education, or a down payment on a home.

Money Market Deposit Account

27neusomt — 2024-10-01 13:01:11 UTC

a type of interest-earning savings account. Money market accounts are offered by financial institutions. They are insured by the Federal Deposit Insurance Corporation (FDIC), and they typically have limited transaction privileges.

APY

27neusomt — 2024-10-01 13:01:14 UTC

annual percentage yield, which is the rate of return on an investment over a year.

Nominal Interest Rate

27neusomt — 2024-10-01 13:01:16 UTC

The nominal interest rate is the interest rate on a loan or investment that doesn't account for inflation, fees, or compounding.

Real Interest Rate

27neusomt — 2024-10-01 13:01:19 UTC

an interest rate that has been adjusted for inflation.

Fee Schedule

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a list of fees used for a variety of purposes.

Signature Card

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a document that financial institutions use to verify a customer's signature for their bank account.

Emergency Fund

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A fund with a set of savings that can be used to pay for unexpected expenses.

Bank Statement

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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.

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an identifying number allocated to an individual by a bank or other organization and used for validating electronic transactions.

Overdraft/Overdrafting

27neusomt — 2024-10-01 13:01:31 UTC

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

Nonsufficient funds fee

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

Fraud

27neusomt — 2024-10-01 13:01:35 UTC

any intentional act of deception or misrepresentation used to gain an unfair financial advantage over another person or entity

FTC

27neusomt — 2024-10-01 13:01:37 UTC

The Federal Trade Commission (FTC) is a federal agency that protects consumers and promotes competition in the economy through law enforcement, research, education, and advocacy

identity Theft

27neusomt — 2024-10-01 13:01:49 UTC

a crime that involves the theft of someone's personal information and its use for financial gain or fraud.