Personal Finance Vocabulary

An asset that a lender accepts as security for a loan.

• Purchasing Power

• Credit history

• Creditworthy

• Collateral

A record of your ability to repay debts and demonstrated

responsibility in repaying them.

• Purchasing power

• Creditworthy

• Credit history

• Collateral

An unchanging rate charged on a liability, such as a loan or

mortgage.

• Fixed interest rate

• Fixed expense

• Installment plan

• Purchasing power

The amount paid for insurance.

• Deductible

• Premium

• Interest

• Savings

The money that a person has left over after they subtract out their consumer spending from their disposable income over a given time period.

• Surplus

• Interest

• Savings

• Investment

The monetary charge for the privilege of borrowing money.

• Deductible

• Premium

• Savings

• Interest

An asset acquired or invested in to build wealth and save money.

• Investments

• Mutual Funds

• Savings

• Deductible

A financial plan that helps individuals manage their income, expenses, and savings.

• A) Budget

• B) Credit Score

• C) Investment

• D) Loan

The amount of money borrowed or invested, excluding interest.

• A) Principal

• B) Interest

• C) Dividend

• D) Premium

A type of savings account that earns interest and has a fixed term.

• A) Certificate of Deposit

• B) Checking Account

• C) Money Market Account

• D) Savings Bond