Advanced Budgeting Vocabulary

Paying a loan off in installments, rather than one lump sum.

• Amortize

• Refinance

• Collateralize

• Default

The abbreviation for annual percentage rate.

• APR

• API

• APY

• AER

A request submitted to your insurance provider to help pay for covered expenses.

• Claim

• Premium

• Deductible

• Policy

A type of auto insurance that protects against damage costs accrued by the policyholder.

• Collision Coverage

• Liability Coverage

• Comprehensive Coverage

• Personal Injury Protection

Car insurance that protects against damage that isn't caused by a collision.

• Comprehensive Coverage

• Liability Coverage

• Collision Coverage

• Personal Injury Protection

A detailed list of the factors contributing to your credit score, including open accounts and payment histories.

• Credit Report

• Bank Statement

• Loan Agreement

• Tax Return

A number assigned to an individual that quantifies their ability to use and pay back credit.

• Credit Score

• Interest Rate

• Credit Limit

• Loan Term

A calculation that divides the debt you have by the amount of money you make to produce a percentage that helps lenders decide your ability to pay back a loan. Fill in the blank: ________

• Debt-To-Income Ratio

• Credit Utilization Rate

• Net Worth Statement

• Annual Percentage Rate

The amount you'll need to pay before insurance kicks in and covers the rest of your costs. For renter's and auto insurance, the ________ is per claim.

• Deductible

• Premium

• Coverage

• Liability

A budgeting method where you record your earnings twice: once in your account and once in your budget.

• Double Entry Accounting

• Zero-Based Budgeting

• Envelope System

• Incremental Budgeting