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Banking
Checking & Savings Vocab
| Term | Definition |
|---|---|
| 50-20-30 Rule | A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending |
| ATM | Automatic Teller Machine. Allows a person to manage a bank account holder's funds through actions such as withdrawing or depositing money, viewing account balances, etc. |
| Balance | The amount of money you have in your bank account |
| Bank Statement | A monthly document prepared by your financial institution which shows all of the transactions related to your account |
| Certificate Of Deposit (CD) | A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time |
| Check | A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee |
| Check Cashing Store | A business that cashes checks and gives the customer cash in exchange for a fee for the service |
| Compound Interest | Reinvesting earned interest back into the principal to allow money to grow exponentially over time |
| Credit Card | A card that allows the holder to make purchases without cash by borrowing money |
| Debit Card | A card that is directly connected to your checking account; it enables you to conduct ATM transactions and to make purchases instead of using cash or writing a check |
| Deposit | Money you put into your account |
| Deposit Slip | A form you fill out to credit money to your account when you make a deposit |
| Digital Wallet | An application that runs on mobile devices. It securely stores your payment information and passwords and allows you to pay for items without needing your physical cards. |
| Direct Deposit | An automatic electronic deposit of net pay to an employee's designated bank account |
| Emergency Fund | Money set aside for unanticipated expenses or loss of income |
| Endorse | To sign the back of a check made out to you so it can be cashed or deposited |
| FDIC Insurance | Protection provided by the Federal Deposit Insurance Corporation; protects the deposits of customers against loss up to $250,000 per account |
| Federal Deposit Insurance Corporation (FDIC) | The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor |
| FOMO (fear of missing out) | The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website |
| Inflation | The rate at which the price of goods increases and consumer purchasing power decreases over time |
| Interest | A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card |
| Impulse Buying | The buying of goods without planning to do so in advance, as a result of a sudden whim or urge |
| Living Paycheck to Paycheck | Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing |
| Low Balance Alert | A notification that lets you know if the balance in your checking account goes below a set amount |
| Maintenance Fee | A monthly fee that some banks charge to provide access to checking or savings accounts |
| Minimum Balance | A certain amount of money that must be kept in an account as required by that particular financial institution |
| Mobile Deposit | A mobile banking tool that allows you to deposit checks to your bank account using your mobile device |
| Money Market Savings Account | A type of savings account that may allow debit card and check writing privileges |
| Online Bill Pay | A consumer banking technology that allows you to schedule and make payments over the internet |
| Online Savings Account | A type of savings account, typically offering higher interest rates, that is managed entirely online with no physical bank branch |
| Outstanding Check | A check that has been written but has not yet been cashed or deposited by the payee |
| Outstanding Deposit | A deposit that has been made but not yet added to the person's bank account |
| Overdraft Fee | A fee charged to your account when it lacks the funds to cover a withdrawal, but the bank allows the transaction to go through anyway |
| Overdraft Coverage | A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest |
| Pay Yourself First | A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases |
| Person-to-Person Payment | A digital payment method that allows you to transfer funds from your bank account to that of another person |
| Prepaid Debit Card | A card that is loaded with a specific cash amount before you use it. It is not linked to a bank or credit union account. |
| Unbanked | A term used to describe a person who does not use or does not have access to traditional financial services |
| Underbanked | A term used to describe a person who has a bank account, but often relies on alternative financial services such as check cashing |
Created by:
jenjones
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