Ch 3 Vocab - Saving Money

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

• Emergency Fund

• Compound Interest

• Interest Rate

• Accrued Interest

Interest paid on interest previously earned.

• Inflation

• Interest Rate

• Compound Interest

• Compound Growth

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

• Compound Interest

• Rate of Return

• Interest Rate

• Time Value of Money

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

• Inflation

• Compound Growth

• Interest Rate

• Compound Interest

A purchase that requires a significant amount of money

• Time Value Of Money

• Emergency Fund

• Accrued Interest

• Large Purchase

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

• Interest Rate

• Compound Interest

• Time Value Of Money

• Rate Of Return

The initial amount of money invested or borrowed

• Inflation

• Principal

• Compound Interest

• Interest Rate

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

• Accrued Interest

• Large Purchase

• Compound Interest

• Interest Rate

Concept that an amount of money is worth more today than in the future due to earning potential

• Rate of Return

• Inflation

• Compound Interest

• Time Value of Money

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

• Recession

• Inflation

• Compound Growth

• Time Value Of Money