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Words To Know

Vocabulary - Make Your Money Work For You

Automated Teller Machine (ATM)

A computer terminal used to conduct business with a financial institution or purchase items such as postage stamps or transportation tickets; also known as a cash machine.

Bank

A state or federally chartered for-profit financial institution that offers commercial and consumer loans and other financial services.

Budget

1. A spending plan. 2. A record of projected and actual income and expenses over a period.

Checking Account

A bank account that allows you to transfer money you've deposited to a payee by writing checks or using a check or debit card to make purchases.

Credit Card

A plastic card that authorizes the delivery of goods and services in exchange for future payment with interest, according to a specific schedule.

Debit Card

A plastic card that provides access to electronic funds transfer (EFT) from an automated teller machine (ATM) or a point-of-sale (POS) terminal.

Deposit

A sum of money deposited in a bank.

Direct Deposit

The automatic transfer of salaries, wages, rents, benefits, or other sums, directly to the account of an employee or beneficiary.

Expenses

The cost of goods and services, including those that are fixed (such as rent and auto loan payments) variable (such as food, clothing, and entertainment) and those that are periodic (car repairs, doctor’s appointments).

Fixed Expenses

An item in your budget whose cost is the same each month, such as rent or mortgage payment.

Online Bank

Computerized service that allows a bank’s customers to get online with the bank via the internet to view the status of their account(s) and transaction history. It usually also allows them to transfer funds, pay bills, request check books, etc.

Savings Accounts

A financial institution deposit account that pays interest and allows withdrawals.

Variable Expenses

An item in your budget whose cost is different each month, such as a utility payment.

Withdrawal

The removal of money or securities from a bank or other place of deposit.