Vocabulary - FITC
Vocabulary
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401K - A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.
403 (b) - A U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.
529 Plans - The Utah Educational Savings Plan (UESP) is a nonprofit 529 college savings plan. 529 plans are tax-advantaged savings vehicles designed to encourage individuals to begin to save for the future costs of higher education. You do not have to be a Utah resident to save with UESP.
Advertising - To call public attention to, especially by pointing out desirable qualities so as to create a desire to buy or do business with.
Amortization Table/Schedule - A schedule of payments showing the amounts of principal and interest that make up each payment.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Annual Percentage Rate (APR) - The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
Bank - A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.
Bankruptcy - A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common).
Beneficiary - A person who benefits or is expected to be the person who receives the insurance money when policy funds are dispersed.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Benefits - Include various types of non-wage compensation provided to employees in addition to their normal wages or salaries.[1] In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples include housing (employer provided or employer paid), group insurance (health, dental, life), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid) social security, profit sharing, funding of education and other specialized benefits. The purpose of employee benefits is to increase the economic security of staff and members, and doing so, improve worker retention across the organization.
Budget - A financial plan used to forecast and track income and expenses.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Buying Strategies -
Career - Profession or field of employment for which one trains, such as financial services or medicine.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Certificate of Deposit (CD) - A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate,
and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.
Charitable Contributions - In general, [money given to] a charitable organization that exists to benefit society as a whole rather than to enrich individual owners or shareholders.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Chex-Systems - The Chex Systems, Inc. network is comprised of member financial institutions that regularly contribute information on closed checking and savings accounts. ChexSystems shares this information among its member institutions to help them assess the risk of opening new accounts.
Closing Costs - Closing costs are fees paid at the closing of a real estate transaction. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are incurred by either the buyer or the seller.
Co-signers - The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain financing.
Collateral - Security pledged for the payment of a loan: He gave the bank some stocks and bonds as collateral for the money he borrowed.
Commissions - A service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security.
Comparison Shopping - Examining different brands or models of a product (to learn about variations in quality, size, etc.), or the prices charged by different sellers (to learn about possible cost-savings), before deciding what to buy.
Compound Interest - Interest paid or to be paid both on the principal and on accumulated unpaid interest.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Consumer Banking Technologies -Source: UST
Direct Deposit and Direct Debit - Being paid or paying electronically via ACH.
Remote Check Deposit - Imaging and depositing a check using a smartphone.
on-line bill pay.
Mobile Payments - Through Apple Pay, Softcard, Google Wallet.
Consumer to Consumer (C2C) - Payments through services such as PayPal, Popmoney, Square Cash.
Reloadable Prepaid Debit Cards - Such as Green Dot and American Express Serve.
Consumer Protection Laws -
Truth in Lending Act: a regulation by the federal government that requires uniform methods for computing the cost of credit and disclosing credit terms.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Fair Debt Collection Practices Act: Federal law that limits the behavior and actions of debt collectors who are attempting to collect the debt for another person or entity.
Fair Credit Reporting: a United States federal law (codified at Title 15 United States Code Section 1681 and following) that regulates the collection, dissemination, and use of consumer information, including consumer credit information.
Equal Credit Opportunity Act: a United States law (codified at 15 U.S.C. § 1691 et seq.), enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status or age.
Home Mortgage Disclosure Act: (or HMDA, pronounced HUM-duh) is a United States federal law that requires certain financial institutions to provide mortgage data to the public. Congress enacted HMDA in 1975.
Right to Financial Privacy Act: a United States federal law, Title XI of the Financial Institutions Regulatory and Interest Rate Control Act of 1978, that gives the customers of financial institutions the right to some level of privacy from government searches.
Regulation D: contains the rules providing exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the securities with the SEC.
Truth in Savings Act: The act was implemented under Federal Regulation. The Truth in Savings Act was designed to help promote competition between depository institutions and make it easier for consumers to compare interest rates, fees and terms associated with savings institutions' deposit accounts.
Electronic Funds Transfer Act/Regulation E: A federal law that protects consumers engaged in the transfer of funds through electronic methods. This includes the use of debit cards, automated teller machines and automatic withdrawals from a bank account. The act also provides a means of correcting transaction errors and limits the liability from any loses due to a lost or stolen card.
Community Reinvestment Act: is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations.
Credit - The providing of money or goods with the expectation of payment in the future. Trust given to a customer for future payment for goods purchase.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Credit - A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.
Credit Abuse -
Late Fees - See
Missed Payments -
Collection Notices -
Bounced Checks -
Credit Card Bureaus - Company that collects information about your credit history and sells it to lenders. (Equifax (), Trans Union (), Experian ()
Credit Report - A record of your credit history that includes information about your identity, existing credit, public record, and inquiries about you.
Source: PwC Earn Your Future (EYF) Curriculum
Credit Union - Member-owned financial cooperative. These institutions are crated and operated by its members and profits are shared amongst the owners.
Creditworthiness - Trustworthiness with money ba a general qualification for borrowing, including character, capacity, capital, collateral and conditions.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Deductible - The amount of money an insured person pays before the insurance company makes payments for loss.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Default Rates - 1. The rate of borrowers who fail to remain current on their loans. It is a critical piece of information used by lenders to determine their risk exposure and economists to evaluate the health of the overall economy. 2. The interest rate charged to a borrower when payments on a revolving line of credit are overdue.
Deflation - A sustained decrease in the average price level of all the goods and services produced in the economy.
Delayed Gratification - Refers to the ability to put off something mildly fun or pleasurable now in order to wait for something that is greatly fun, pleasurable, or rewarding later. For example, you could watch TV the night before an exam, or you could exhibit delayed gratification and study for the exam.
Derogatory Remarks - a long-lasting negative record on your credit report. These marks will likely hurt your ability to qualify for credit or obtain desireable rates and typically take seven
to ten years to clear from your credit report.
Diversification - A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
Dividend Reinvestment - A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly divide instead, the investor's dividends are directly reinvested in the underlying equity.
Economics - The social science study of how people use their limited resources in satisfaction of their limitless wants.
&&&&Adapted from Economics NEW WAYS OF THINKING- Roger A. Arnold 2011,
EMC Publishing, LLC.
isbn#973-0-
Emergency Fund - An account that is used to set aside funds to be used in an emergency such as loss of a job, an illness, or a major expense.
Employment Forms -
W-4 - Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay.
&&&&Source: IRS
W-2 - Employers must file a Form W-2 for each employee from whom Income, social security, or Medicare tax was withheld.
&&&&Source: IRS
I-9 - An employee must show documentation to his/her employer to show their identity and authorization to work. The following Web pages will teach you about the kinds of documents that employers may accept from employees to complete Form I-9.
Entrepreneurship -
The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural resources, and capital can produce profit. Entrepreneurial spirit spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.
Expansion - One of two basic business cycle phases. The other is contraction. The transition from expansion to contraction is termed a peak and the changeover from contraction to expansion is a trough. It is a period when business activity surges and gross domestic product expands until it reaches a peak.
Expense - Money spent for goods and services.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
FAFSA - (Free Application for Federal Student Aid): FAFSA forms become available in December of the senior year. All students applying for any federal financial aid must file this form as soon as possible after January 1. Analysis of the data on this form will determine eligibility for Pell G Supplemental Educational Opportunity Grants (SEOG); Stafford Loans (subsidized and non-subsidized); Perkins L work- and other federal and, in some cases, state programs.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
FAFSA4Caster - Will help you understand your options for college. Provide some basic information and we'll estimate your eligibility for federal student aid. Your estimate will be shown in the &College Cost Worksheet& where you can also provide estimated amounts of other student aid and savings that can go towards your college education.
Federal Deposit Insurance Corporation (FDIC) -
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Banking Act of 1933. As of August 2014, it provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank. As of August 27, 2014, the FDIC insured deposits at 6,638 institutions.
Federal Reserve - The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.[3][8] Events such as the Great Depression in the 1930s were major factors leading to changes in the system.
Finance - A subset of Economics. The science that describes the managment, creation and study of money, banking, credit, investments, assets and liabilities.
Finance Charge - A finance charge is often an aggregated cost, including the cost of the carrying the debt itself along with any related transaction fees, account maintenance fees or late fees charged by the lender.
Financial Goal, Short-term Financial Goals, Long-term Financial Goals - There are short-term goals and long-term goals and some goals that fall in between. The distinction between the categories is usually related to the amount of time it takes to accomplish the goal and the financial commitment to achieve them. Short-term goals are achievable in the more immediate future and intermediate goals take slightly longer and more of a financial commitment. Long-term goals usually take more than five years to accomplish and require a disciplined saving and investing strategy over a long time period. The most important long-term financial goal for everyone is to save for retirement. For most people, this is the first priority over saving for any other goal.
Fixed Expense - A cost of goods or services that is paid regularly.
Source: PwC Earn Your Future (EYF) Curriculum
For Profit Post-Secondary Institution - For-profit education in the United States (known as for-profit college or proprietary education in some instances) refers to higher education educational institutions operated by private, profit-seeking businesses.
Grace Period - A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.
Identity Fraud - Refers to crime in which criminal obtains and uses a victim's personal data through fraud or deception and usually for economic gain.
Identity Theft - The crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person's name or identity in order to make transactions or purchases.
Money earned from a job or other sources.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Income/Revenues - Money, or other funds, taken in. M money gained from labor (work), business, or property.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Inflation - A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).
Inheritance - Is something passed down from your parents to you, or the act of receiving something passed down from your parents. When your parents leave you their home in their will, this is an example of your inheritance.
Installment Loan - A loan that is repaid over time with a set number o normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example, is a type of installment loan.
Insurance - A contract by which someone guarantees for a fee to pay someone else for the value of property if it is lost or damaged (as through theft or fire) or to pay usually a specified amount for injury or death.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Insurance Companies - A company that offers insurance policies to the public, either by selling directly to an individual or through another source such as an employer's benefits plan An insurance company can specialize in one type of insurance, such as life insurance, health insurance or auto insurance, or offer multiple types of insurance.
Insurance Types -
Home Owner/Renter - A form of insurance that protects the insured property against loss from theft, liability and most common disasters.
Automobile - Insurance purchased for cars, trucks, and other road vehicles. Its primary use is to provide protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.
Health - Insurance against loss due to ill health.
Whole/Term Life - Insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured.
Long Term Disability -
A disability insurance designed to offer income payments for long-term injuries, illnesses or disabilities. Long- term if often considered over 90 days.
Interest - The cost of money that is borrowed, which is usually a percentage of the borrowed amount.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Interest Charged - The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Interest Earned - The profit on money that is invested, which is usually a percentage of the invested amount.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Investment - Money put aside for profit: A financial holding that is purchased with the expectatio investments can be secured or unsecured, and the expected value of return on one's investment is usually dependent on the degree of risk involved.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Investment or Brokerage Firms - A business whose main responsibility is to be an intermediary that puts buyers and sellers together in oder to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.
Investor Behavior - In 2001 Dalbar, a financial-services research firm, released a study entitled &Quantitative Analysis of Investor Behavior&, which concluded that average investors fail to achieve market-index returns.
An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement. There are two types of IRAs, traditional and Roth, each with its own qualifications and rules governing contributions and withdrawals.
Job - Position of employment with specific duties and compensation.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Late Fee - A charge a consumer pays for making a required minimum payment on a credit card after the due date. Late fees encourage consumers to pay on time and are typically $25 for the first late payment and $35 for subsequent late payments.
The Law of Supply and Demand - An economic force. The theory explaining the interaction between the supply of a resource and the demand for that resource.
Lifetime Limit - Lifetime maximum or lifetime limits refers to the maximum dollar amount that a health insurance company agrees to pay on behalf of a member for covered services during the course of his or her lifetime.
Limits of Coverage - The largest total amount the insurance company will pay for covered losses. Many policies have multiple limits - a certain amount per person, another amount per accident, and sometimes an aggregate limit on all losses paid during the policy term.
Loan Agencies - Also known as a &captive finance company& a subsidiary whose purpose is to provide financing to customers buying the parent company's product. Captive finance companies can range in size from mid-size entities to giant firms, depending on the size of the parent company.
Long-term Investment - An account on the asset side of a company's balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate and cash. The long term investment account differs largely from the short-term investment account in that the short-term investment will most likely be sold, whereas, the long term investment may never be sold.
Marketing Strategies - See
National Credit Union Administration (NCUA) - The National Credit Union Administration (NCUA) is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of more than 98 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Negotiation -
Non-Sufficient Funds (NSF) Handling - NSF An acronym used in the banking industry to signify that there are &non-sufficient funds& in an account in order to honor a check drawn on that account. Colloquially, this is known as a &bounced check& or &bad check&. Also the fees associated with NSF.
Non-Profit Post-Secondary Institution - Non-profit [schools] offer a learning environment designed first and foremost to benefit the students' interests, helping them achieve their college degrees and achieve career success. For profits (sometimes called &proprietary schools&) are in business to make money for their owners and shareholders by offering a service, in this case, education.
Occupation - The name for a unique set of tasks, skills and abilities that a worker performs.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Online Commerce - The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business.
Opportunity Costs - Real or potential costs associated with missed opportunities based on choices made.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Overdraft Processing - If a request for payment comes to your account and the money is not there to cover, the bank, depending upon your relationship with the bank, will either honor the request and send the money for the transaction, or it will not. In most cases the bank will charge a fee for this overdraft, whether they honor the request for payment, or not. The bank provides a service when they pay the transaction but the bank provides no service when they simply return the item unpaid. They generally charge the same overdraft fee for either.
Pay Yourself First (PYF) -
A phrase commonly used in personal finance and retirement planning literature that means to automatically route your specified savings contribution from each paycheck at the time it is received. Pay yourself before you begin paying your monthly living expenses and making discretionary purchases.
Payday Lending - A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
Periodic Expense - Costs which occur on an irregular basis, rather than monthly. Examples of periodic expenses include quarterly insurance premiums, school taxes, or automobile maintenance costs.
Phishing - A high-tech scam that uses spam or pop-up messages to deceive consumers into disclosing their card numbers, bank account info, Social Security number, passwords, or other personal information by claiming to be from a business or organization that the consumer deals with.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Ponzi Scheme - A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors.
Predatory Lending - Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn't need, doesn't want or can't afford.
Premium - The amount paid for a contract of insurance.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Principal - The amount of money borrowed.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Private Post-Secondary Institution - Examples in Utah: Westminister and BYU. These are not necessarily for profit institutions as &proprietary schools& are.
Public Post-Secondary Institution - Examples in Utah: USU, UofU, UVU, SUU, DSU, SLCC, CEU, Snow.
Recession - A decline in the rate of national economic activity, usually measured by a decline in real GDP for at least two consecutive quarters (i.e., six months).
Resume - 1. A summary. 2. A brief written account of personal, educational, and professional qualifications and experience, as that prepared by an applicant for a job.
Retirement Planning - the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets.
Revolving Credit - A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customer's current cash flow needs.
Risk/Reward - A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to have made when the position is closed (i.e. the reward).
Roth IRA - An individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free. Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.
Rule of 72 - A method used in finance to quickly estimate the doubling or halving time through compound interest or inflation, respectively. For example, using the rule of 72, an investor who invests $1,000 at an interest rate of 4% per year, will double their money in approximately 18 years.
Salary - Compensation, most usually monetary, paid in exchange for fulfillment of one's duties in a position. Note that some types of income can be non-salary.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Salary - Money one receives in return for work.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Sales / Marketing Strategies -
Penetration Pricing: A marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors.
Merchandising: the planning and promotion of sales by presenting a product to the right market at the proper time, by carrying out organized, skillful advertising, using attractive displays, location etc.
Product Placement: A form of advertising (usually not involving ads) in which branded products and services are noticeable within a drama production with large audiences.
Endorsements: If you give something an endorsement, you're basically saying &I approve of this person or product.& Celebrities give politicians an endorsement if they think you should vote for them. When celebrities do commercials for products, those are also endorsements.
Customer Loyalty Programs: A rewards program offered by a company to customers who frequently make purchases. A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise.
Saving - Setting aside of income for future spending.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Savings - Money saved over a period of time. Funds not spent and set aside, often on a regular basis, for later use.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Savings Account - A bank [or credit union] account in which you deposit money for future spending.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Scarcity - The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
Secured Credit (card) - A type of credit card that is backed by a savings account used as collateral on the credit available with the card. Money is deposited and held in the account backing the card.
Short-term Investment - An account in the current assets section of a company's balance sheet. This account contains any investments that a company has made that will expire with one year. For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly.
Simple Interest - Interest paid or figured on the original amount of a loan or on the amount of an account.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Student Loans - Loans designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
Supply and Demand (of the workforce) -
A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has on price. Generally, if there is a low supply and a high demand, the price will be high. In contrast, the greater the supply and the lower the demand, the lower the price will be.
Taxes (federal, state, local) - Required payments of money to governments that are used to provide public goods and services for the benefit of the community as a whole.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Time Value of Money (TVM) - The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Unsecured Credit (card) - Unsecured credit cards are the most common type of credit cards. They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize of the card holder fails to pay.
Variable Expense - A cost of goods or services that changes in amount from week to week or month to month.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Wages - a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
Standard 1
Objective 1
Delayed Gratification - Refers to the ability to put off something mildly fun or pleasurable now in order to wait for something that is greatly fun, pleasurable, or rewarding later. For example, you could watch TV the night before an exam, or you could exhibit delayed gratification and study for the exam.
Economics - The social science study of how people use their limited resources in satisfaction of their limitless wants.
&&&&Adapted from Economics NEW WAYS OF THINKING- Roger A. Arnold 2011,
EMC Publishing, LLC.
isbn#973-0-
Finance - A subset of Economics. The science that describes the managment, creation and study of money, banking, credit, investments, assets and liabilities.
Instant Satisfaction -
The Law of Supply and Demand - An economic force. The theory explaining the interaction between the supply of a resource and the demand for that resource.
Marketing Strategies - See
Scarcity - The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
Objective 2
Opportunity Costs - Real or potential costs associated with missed opportunities based on choices made.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Objective 3
Financial Goal, Short-term Financial Goals, Long-term Financial Goals - There are short-term goals and long-term goals and some goals that fall in between. The distinction between the categories is usually related to the amount of time it takes to accomplish the goal and the financial commitment to achieve them. Short-term goals are achievable in the more immediate future and intermediate goals take slightly longer and more of a financial commitment. Long-term goals usually take more than five years to accomplish and require a disciplined saving and investing strategy over a long time period. The most important long-term financial goal for everyone is to save for retirement. For most people, this is the first priority over saving for any other goal.
Standard 2
Objective 1
Benefits - Include various types of non-wage compensation provided to employees in addition to their normal wages or salaries.[1] In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples include housing (employer provided or employer paid), group insurance (health, dental, life), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid) social security, profit sharing, funding of education and other specialized benefits. The purpose of employee benefits is to increase the economic security of staff and members, and doing so, improve worker retention across the organization.
Career - Profession or field of employment for which one trains, such as financial services or medicine.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Commissions - A service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security.
Entrepreneurship - The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural resources, and capital can produce profit. Entrepreneurial spirit spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.
Income/Revenues - Money, or other funds, taken in. M money gained from labor (work), business, or property.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Inheritance - Is something passed down from your parents to you, or the act of receiving something passed down from your parents. When your parents leave you their home in their will, this is an example of your inheritance.
Investment - Money put aside for profit: A financial holding that is purchased with the expectatio investments can be secured or unsecured, and the expected value of return on one's investment is usually dependent on the degree of risk involved.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Job - Position of employment with specific duties and compensation.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Occupation - The name for a unique set of tasks, skills and abilities that a worker performs.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Salary - Compensation, most usually monetary, paid in exchange for fulfillment of one's duties in a position. Note that some types of income can be non-salary.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Saving - Setting aside of income for future spending.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Supply and Demand (of the workforce) -
A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has on price. Generally, if there is a low supply and a high demand, the price will be high. In contrast, the greater the supply and the lower the demand, the lower the price will be.
Taxes (federal, state, local) - Required payments of money to governments that are used to provide public goods and services for the benefit of the community as a whole.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Wages - a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
Objective 2
529 Plans - The Utah Educational Savings Plan (UESP) is a nonprofit 529 college savings plan. 529 plans are tax-advantaged savings vehicles designed to encourage individuals to begin to save for the future costs of higher education. You do not have to be a Utah resident to save with UESP.
Employment Forms -
W-4 - Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay.
&&&&Source: IRS
W-2 - Employers must file a Form W-2 for each employee from whom Income, social security, or Medicare tax was withheld.
&&&&Source: IRS
I-9 - An employee must show documentation to his/her employer to show their identity and authorization to work. The following Web pages will teach you about the kinds of documents that employers may accept from employees to complete Form I-9.
FAFSA - (Free Application for Federal Student Aid): FAFSA forms become available in December of the senior year. All students applying for any federal financial aid must file this form as soon as possible after January 1. Analysis of the data on this form will determine eligibility for Pell G Supplemental Educational Opportunity Grants (SEOG); Stafford Loans (subsidized and non-subsidized); Perkins L work- and other federal and, in some cases, state programs.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
FAFSA4Caster - Will help you understand your options for college. Provide some basic information and we'll estimate your eligibility for federal student aid. Your estimate will be shown in the &College Cost Worksheet& where you can also provide estimated amounts of other student aid and savings that can go towards your college education.
For Profit Post-Secondary Institution - For-profit education in the United States (known as for-profit college or proprietary education in some instances) refers to higher education educational institutions operated by private, profit-seeking businesses.
Non-Profit Post-Secondary Institution - Non-profit [schools] offer a learning environment designed first and foremost to benefit the students' interests, helping them achieve their college degrees and achieve career success. For profits (sometimes called &proprietary schools&) are in business to make money for their owners and shareholders by offering a service, in this case, education.
Private Post-Secondary Institution - Examples in Utah: Westminister and BYU. These are not necessarily for profit institutions as &proprietary schools& are.
Public Post-Secondary Institution - Examples in Utah: USU, UofU, UVU, SUU, DSU, SLCC, CEU, Snow.
Resume - 1. A summary. 2. A brief written account of personal, educational, and professional qualifications and experience, as that prepared by an applicant for a job.
Standard 3
Objective 1
Bank - A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.
Consumer Banking Technologies -Source: UST
Direct Deposit and Direct Debit - Being paid or paying electronically via ACH.
Remote Check Deposit - Imaging and depositing a check using a smartphone.
on-line bill pay.
Mobile Payments - Through Apple Pay, Softcard, Google Wallet.
Consumer to Consumer (C2C) - Payments through services such as PayPal, Popmoney, Square Cash.
Reloadable Prepaid Debit Cards - Such as Green Dot and American Express Serve.
Credit Union - Member-owned financial cooperative. These institutions are crated and operated by its members and profits are shared amongst the owners.
Federal Deposit Insurance Corporation (FDIC) -
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation operating as an independent agency created by the Banking Act of 1933. As of August 2014, it provides deposit insurance guaranteeing the safety of a depositor's accounts in member banks up to $250,000 for each deposit ownership category in each insured bank. As of August 27, 2014, the FDIC insured deposits at 6,638 institutions.
Federal Reserve - The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved.[3][8] Events such as the Great Depression in the 1930s were major factors leading to changes in the system.
Insurance Companies - A company that offers insurance policies to the public, either by selling directly to an individual or through another source such as an employer's benefits plan An insurance company can specialize in one type of insurance, such as life insurance, health insurance or auto insurance, or offer multiple types of insurance.
Investment or Brokerage Firms - A business whose main responsibility is to be an intermediary that puts buyers and sellers together in oder to facilitate a transaction. Brokerage companies are compensated via commission after the transaction has been successfully completed.
Loan Agencies - Also known as a &captive finance company& a subsidiary whose purpose is to provide financing to customers buying the parent company's product. Captive finance companies can range in size from mid-size entities to giant firms, depending on the size of the parent company.
National Credit Union Administration (NCUA) - The National Credit Union Administration (NCUA) is the independent federal agency that regulates, charters and supervises federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of more than 98 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Objective 2
401K - A qualified plan established by employers to which eligible employees may make salary deferral (salary reduction) contributions on a post-tax and/or pretax basis. Employers offering a 401(k) plan may make matching or non-elective contributions to the plan on behalf of eligible employees and may also add a profit-sharing feature to the plan. Earnings accrue on a tax-deferred basis.
403 (b) - A U.S. tax-advantaged retirement savings plan available for public education organizations, some non-profit employers (only Internal Revenue Code 501(c)(3) organizations), cooperative hospital service organizations, and self-employed ministers in the United States.
Certificate of Deposit (CD) - A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate,
and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.
Compound Interest - Interest paid or to be paid both on the principal and on accumulated unpaid interest.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Deflation - A sustained decrease in the average price level of all the goods and services produced in the economy.
Diversification - A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.
Dividend Reinvestment - A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option offered directly from the underlying company. The investor does not receive quarterly divide instead, the investor's dividends are directly reinvested in the underlying equity.
Expansion - One of two basic business cycle phases. The other is contraction. The transition from expansion to contraction is termed a peak and the changeover from contraction to expansion is a trough. It is a period when business activity surges and gross domestic product expands until it reaches a peak.
Inflation - A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).
Interest Earned - The profit on money that is invested, which is usually a percentage of the invested amount.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Investment - Money put aside for profit: A financial holding that is purchased with the expectatio investments can be secured or unsecured, and the expected value of return on one's investment is usually dependent on the degree of risk involved.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Investor Behavior - In 2001 Dalbar, a financial-services research firm, released a study entitled &Quantitative Analysis of Investor Behavior&, which concluded that average investors fail to achieve market-index returns.
An account in which an individual may set aside earned income in a tax-deferred savings plan for his or her retirement. There are two types of IRAs, traditional and Roth, each with its own qualifications and rules governing contributions and withdrawals.
Long-term Investment - An account on the asset side of a company's balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate and cash. The long term investment account differs largely from the short-term investment account in that the short-term investment will most likely be sold, whereas, the long term investment may never be sold.
Pay Yourself First (PYF) -
A phrase commonly used in personal finance and retirement planning literature that means to automatically route your specified savings contribution from each paycheck at the time it is received. Pay yourself before you begin paying your monthly living expenses and making discretionary purchases.
Recession - A decline in the rate of national economic activity, usually measured by a decline in real GDP for at least two consecutive quarters (i.e., six months).
Retirement Planning - the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets.
Risk/Reward - A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to have made when the position is closed (i.e. the reward).
Roth IRA - An individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free. Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.
Rule of 72 - A method used in finance to quickly estimate the doubling or halving time through compound interest or inflation, respectively. For example, using the rule of 72, an investor who invests $1,000 at an interest rate of 4% per year, will double their money in approximately 18 years.
Savings - Money saved over a period of time. Funds not spent and set aside, often on a regular basis, for later use.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Short-term Investment - An account in the current assets section of a company's balance sheet. This account contains any investments that a company has made that will expire with one year. For the most part, these accounts contain stocks and bonds that can be liquidated fairly quickly.
Simple Interest - Interest paid or figured on the original amount of a loan or on the amount of an account.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Time Value of Money (TVM) - The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Objective 3
Beneficiary - A person who benefits or is expected to be the person who receives the insurance money when policy funds are dispersed.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Deductible - The amount of money an insured person pays before the insurance company makes payments for loss.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Grace Period - A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.
Insurance - A contract by which someone guarantees for a fee to pay someone else for the value of property if it is lost or damaged (as through theft or fire) or to pay usually a specified amount for injury or death.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Insurance Types -
Home Owner/Renter - A form of insurance that protects the insured property against loss from theft, liability and most common disasters.
Automobile - Insurance purchased for cars, trucks, and other road vehicles. Its primary use is to provide protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.
Health - Insurance against loss due to ill health.
Whole/Term Life - Insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured.
Long Term Disability -
A disability insurance designed to offer income payments for long-term injuries, illnesses or disabilities. Long- term if often considered over 90 days.
Lifetime Limit - Lifetime maximum or lifetime limits refers to the maximum dollar amount that a health insurance company agrees to pay on behalf of a member for covered services during the course of his or her lifetime.
Limits of Coverage - The largest total amount the insurance company will pay for covered losses. Many policies have multiple limits - a certain amount per person, another amount per accident, and sometimes an aggregate limit on all losses paid during the policy term.
Premium - The amount paid for a contract of insurance.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Standard 4
Objective 1
Advertising - To call public attention to, especially by pointing out desirable qualities so as to create a desire to buy or do business with.
Amortization Table/Schedule - A schedule of payments showing the amounts of principal and interest that make up each payment.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Budget - A financial plan used to forecast and track income and expenses.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Buying Strategies -
Charitable Contributions - In general, [money given to] a charitable organization that exists to benefit society as a whole rather than to enrich individual owners or shareholders.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Co-signers - The act of signing for another person's debt which involves a legal obligation made by the cosigner to make payment on the other person's debt should that person default. Having a cosigner is way for individuals with a low income or poor/limited credit history to obtain financing.
Collateral - Security pledged for the payment of a loan: He gave the bank some stocks and bonds as collateral for the money he borrowed.
Comparison Shopping - Examining different brands or models of a product (to learn about variations in quality, size, etc.), or the prices charged by different sellers (to learn about possible cost-savings), before deciding what to buy.
Emergency Fund - An account that is used to set aside funds to be used in an emergency such as loss of a job, an illness, or a major expense.
Expense - Money spent for goods and services.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Fixed Expense - A cost of goods or services that is paid regularly.
Source: PwC Earn Your Future (EYF) Curriculum
Money earned from a job or other sources.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Insurance - See
Interest - The cost of money that is borrowed, which is usually a percentage of the borrowed amount.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Negotiation -
Periodic Expense - Costs which occur on an irregular basis, rather than monthly. Examples of periodic expenses include quarterly insurance premiums, school taxes, or automobile maintenance costs.
Principal - The amount of money borrowed.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Salary - Money one receives in return for work.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Sales / Marketing Strategies -
Penetration Pricing: A marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors.
Merchandising: the planning and promotion of sales by presenting a product to the right market at the proper time, by carrying out organized, skillful advertising, using attractive displays, location etc.
Product Placement: A form of advertising (usually not involving ads) in which branded products and services are noticeable within a drama production with large audiences.
Endorsements: If you give something an endorsement, you're basically saying &I approve of this person or product.& Celebrities give politicians an endorsement if they think you should vote for them. When celebrities do commercials for products, those are also endorsements.
Customer Loyalty Programs: A rewards program offered by a company to customers who frequently make purchases. A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise.
Saving - Setting aside of income for future spending.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Savings Account - A bank [or credit union] account in which you deposit money for future spending.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Variable Expense - A cost of goods or services that changes in amount from week to week or month to month.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Objective 2
Annual Percentage Rate (APR) - The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
Bankruptcy - A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common).
Credit - The providing of money or goods with the expectation of payment in the future. Trust given to a customer for future payment for goods purchase.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Credit - A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.
Creditworthiness - Trustworthiness with money ba a general qualification for borrowing, including character, capacity, capital, collateral and conditions.
&&&&Source: PwC Earn Your Future (EYF) Curriculum
Default Rates - 1. The rate of borrowers who fail to remain current on their loans. It is a critical piece of information used by lenders to determine their risk exposure and economists to evaluate the health of the overall economy. 2. The interest rate charged to a borrower when payments on a revolving line of credit are overdue.
Finance Charge - A finance charge is often an aggregated cost, including the cost of the carrying the debt itself along with any related transaction fees, account maintenance fees or late fees charged by the lender.
Grace Period - A provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.
Installment Loan - A loan that is repaid over time with a set number o normally at least two payments are made towards the loan. The term of loan may be as little as a few months and as long as 30 years. A mortgage, for example, is a type of installment loan.
Interest Charged - The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
Late Fee - A charge a consumer pays for making a required minimum payment on a credit card after the due date. Late fees encourage consumers to pay on time and are typically $25 for the first late payment and $35 for subsequent late payments.
Payday Lending - A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
Predatory Lending - Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn't need, doesn't want or can't afford.
Revolving Credit - A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customer's current cash flow needs.
Secured Credit (card) - A type of credit card that is backed by a savings account used as collateral on the credit available with the card. Money is deposited and held in the account backing the card.
Student Loans - Loans designed to help students pay for university tuition, books, and living expenses. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still in school.
Unsecured Credit (card) - Unsecured credit cards are the most common type of credit cards. They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize if the card holder fails to pay.
Objective 3
Closing Costs - Closing costs are fees paid at the closing of a real estate transaction. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are incurred by either the buyer or the seller.
Credit Abuse -
Late Fees - See
Missed Payments -
Collection Notices -
Bounced Checks -
Credit Card Bureaus - Company that collects information about your credit history and sells it to lenders. (Equifax (), Trans Union (), Experian ()
Credit Report - A record of your credit history that includes information about your identity, existing credit, public record, and inquiries about you.
Source: PwC Earn Your Future (EYF) Curriculum
Derogatory Remarks - a long-lasting negative record on your credit report. These marks will likely hurt your ability to qualify for credit or obtain desireable rates and typically take seven
to ten years to clear from your credit report.
Identity Fraud - Refers to crime in which criminal obtains and uses a victim's personal data through fraud or deception and usually for economic gain.
Non-Sufficient Funds (NSF) Handling - NSF An acronym used in the banking industry to signify that there are &non-sufficient funds& in an account in order to honor a check drawn on that account. Colloquially, this is known as a &bounced check& or &bad check&. Also the fees associated with NSF.
Overdraft Processing - If a request for payment comes to your account and the money is not there to cover, the bank, depending upon your relationship with the bank, will either honor the request and send the money for the transaction, or it will not. In most cases the bank will charge a fee for this overdraft, whether they honor the request for payment, or not. The bank provides a service when they pay the transaction but the bank provides no service when they simply return the item unpaid. They generally charge the same overdraft fee for either.
Objective 4
Chex-Systems - The Chex Systems, Inc. network is comprised of member financial institutions that regularly contribute information on closed checking and savings accounts. ChexSystems shares this information among its member institutions to help them assess the risk of opening new accounts.
Identity Theft - The crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person's name or identity in order to make transactions or pur