Personal Finance Vocab

a reduction to the amount of taxable income you made in a year

• Tax division
• deduction

• Tax multiplication
• Tax addition

a request you submit to your insurance provider to pay for covered expenses

• DTI

• claim

• insurance

• income

a document detailing the type and amount of coverage that your insurance offers

• claim

• Roth IRA

• policy

• Debt

an amount paid before a large purchase that reduces the loan amount and proves your intention and ability to repay the loan

• mortgage

• lease

• down payment

• income

anything that you spend money on, whether it's a necessity or a luxury

• Debt to Income

• expense

• principal

• lease

a contract to use someone else’s property for a specified rate and length of time

• lease

• traditional IRA

• principal

• debt

the amount of money you make each month compared to how much debt you have to pay

• net worth

• expense

• debt to income (DTI)

• liquidity

a service that provides protection against unpredictable events such as a car accident or broken arm

• claim

• policy

• insurance

• mortgage

the amount that you own in assets minus the amount you owe liabilities

• deduction

• claim

• net worth

• policy

the total amount of unpaid money on a loan excluding any interest charges

• principal

• interest

• net worth

• paycheck