Personal Finance: Savings Vocab

the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued

• Accrued Interest

• Compound Interest

• Interest Rate

• Compound Growth

The percentage of principal charged by the lender for use of money

• Interest Rate

• Murphy’s Law

• Principal

• Large Purchase

Interest paid on interest previously learned

• Compound Interest

• Interest Rate

• Inflation

• Rate of Return

A savings account set specifically to be used to cover financial emergencies

• First Foundation

• Emergency Fund

• Fifth Foundation

• Principal

The average rate of growth for an investment over time; often expressed an annual figure

• Rate of Return

• Interest Rate

• Compound Growth

• Compound Interest

A purchase that requires a significant amount of money

• Time Value of Money

• Second Foundation

• Principal

• Large Purchse

The initial amount of money invested or borrowed

• Principal

• Time Vale of Money

• Rate of Return

• Accrued Interest

The persistent rise in the cost of goods and services over time

• Compound Growth

• Murphy’s Law

• Paycheck to Paycheck

• Inflation

An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings

• Paycheck to Paycheck

• Compound Growth

• Inflation

• Large Purchase

The measure of an investment's profit or loss, usually expressed as a percentage of the initial investment

• Accrued Interest

• Rate of Return

• Emergency Fund

• Fifth Foundation