The terms
Glossary.
Every term used on this site, defined in one place.
- Need
- Something required for survival or basic functioning, like food, shelter, or water.
- Want
- A desire or wish that is not essential for survival, like luxury items or entertainment.
- Stocks
- Shares of ownership in a company. Stockholders can benefit from company growth and dividends.
- Bonds
- A type of debt where investors lend money to a government or company in exchange for regular interest payments and the return of the original amount at the end.
- Dividend
- A portion of a company's profits paid to shareholders, usually every three months.
- Stock Index
- A measure of how a group of stocks is doing, like the S&P 500 or the Dow Jones Industrial Average.
- Treasury Bills, Notes, and Bonds
- U.S. government debt with different time frames. Treasury bills are short term, notes are medium term, and bonds are long term.
- Credit Account
- An account that lets you borrow money for purchases, which must be paid back with interest.
- Debit Account
- An account linked to a checking or savings account where purchases come from money you already have.
- Interest
- The cost of borrowing money, or the money you earn on deposits.
- Bull Market
- A market where prices are going up and investors feel good about the future.
- Bear Market
- A market where prices are going down and investors feel worried.
- Financial Planning
- Managing your money to meet your personal goals through saving, investing, and budgeting.
- SMART Goals
- A way to set goals that are Specific, Measurable, Achievable, Relevant, and Time bound.
- Spending Plan or Budget
- A plan for your income and expenses over a period of time so you can manage money well.
- Cash Flow
- The money moving into and out of your account over a period of time.
- W-4 and W-2 Forms
- A W-4 tells your employer how much federal income tax to take out of your paycheck. A W-2 reports your yearly wages and taxes to the IRS.
- Insurance
- A product that protects you against loss in exchange for regular payments, like life, health, or auto insurance.
- Philanthropy
- Giving money, resources, or time to charitable causes.
- Deductions
- Amounts taken out of your paycheck, like taxes, insurance, or retirement contributions.
- Federal and State Income Tax, Social Security, Medicare
- Taxes paid to the federal and state governments. Social Security gives income to retirees and Medicare gives health insurance to seniors.
- Savings Account
- A bank account that earns interest over time, used for saving money in the short term.
- Certificate of Deposit
- Money you leave in a bank for a set time. The bank pays you a fixed interest rate for that time.
- U.S. Savings Bond
- A bond issued by the U.S. government as a safe place to put money, with low risk and lower returns.