Personal Finance 1

Define mortgage

• A deficit that occurs when you withdraw an amount of money from an account that exceeds the account balance.

• A loan you take out to buy a piece of property, where the piece of property is the collateral.

• A type of investment that is essentially a loan from the investor to the bond issuer (the US government or a corporation, for example).

• The process by which the amount due on a loan is reduced over time. Generally, a higher proportion of each payment goes toward interest when you begin paying off the loan, with an increasing proportion going toward principal over time.

Dependent

• A person or organization, often acting in a financial-advisory or asset-management capacity, who is legally bound to be honest with you and act in your best interest.

• A nongovernmental but government-authorized organization that regulates brokers to protect investors from fraud and keep them from being taken advantage of.

• A person, like a child or a disabled or elderly relative, who lives with you and who you provide for financially.

• A designation you can give a trusted person that allows them to make major decisions, like financial and medical decisions, on your behalf if you are incapacitated.

Guarantor

• A third party, engaged by a renter, who agrees to pay the landlord if the renter is unable to pay rent.

• A person, like a child or a disabled or elderly relative, who lives with you and who you provide for financially.

• The lump sum of money you pay toward buying a home when you take out a mortgage.

• A financial planner who is a fiduciary and whose compensation comes directly from their clients.

Mutual Fund

• A type of investment that, when purchased, gives you partial ownership of the company.

• A high-interest-rate savings account that often requires a higher opening balance and monthly balance than typical savings accounts.

• Small public companies' stock shares that are valued at less than $1 apiece.

• A financial instrument that uses a pot of money from many different investors to buy a diversified mix of stocks, bonds, and other securities.

Social Security

• The portion of your income that is not subject to taxes if you choose not to itemize deductions.

• A type of mutual fund in which you can invest retirement money that automatically gradually shifts from riskier asset allocation to a more conservative allocation as your chosen retirement year grows nearer.

• A federal program that Americans pay into with taxes and draw income from when they retire.

• A US government-backed student loan for students at a certain threshold of financial need.

Affluence

• Personal satisfaction

• Abundance of wealth

• Properties own

• Stocks and bonds

Conspicuous consumption

• Stick out like a sore thumb

• Carefully planned acquisitions with the purpose of increasing wealth.

• Purchases made beyond one’s means, intended to project an image of affluence.

• Investments that are recognizable by other investors.

Impulse purchase

• A purchase that impels your personal wealth.

• A purchase that impulses stock investment.

• A purchase of stocks and shares that impulses the economy.

• A purchase made without any prior intent or planning.

Statement

• A summary of activity in a financial account

• A communication or declaration in speech or writing, setting forth facts, particulars, etc.

• Noting or relating to an item of jewelry, clothing, home décor, etc., that stands out usually because of its large size or bold design.

• An appearance of a theme, subject, or motif within a musical composition.

Collateral

• The state of a credit account that is far enough past due that the creditor sent it to a debt collector. Having accounts in collections can significantly lower your credit score.

• A borrower's item, property, or asset that a lender accepts as a guarantee of a loan.

• An economic unit that can be bought or sold but has the same value regardless of who produced it. Oil, gold, and wheat are all examples of commodities.

• A person, like a child or a disabled or elderly relative, who lives with you and who you provide for financially.