-A-
Adjustable Rate:
A mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the renegotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage.
Annual Gross Income :
Refers to all the money you earn during the year before taxes or other deductions.
Annual Rate of Return:
The amount received in the form of interest during the course of one year for investments such as CD's or Bonds.
Annual Savings:
Your savings of one year.
Annual Percentage Rate (APR):
The one-year rate that is charged for borrowing (or made by investing). By law, credit card companies and loan issuers must show customers the APR.
Available Balance:

The amount of money in your checking or savings account that is ready for you to use.

Note - Sometimes when you deposit a check, it is not immediately ready for you to use. Sometimes, you must wait 2-5 days for it to clear.
-B-
Bad credit:
A history of late payments and mismanagement of one's finances. A person with bad credit may find it difficult to afford the things that add to quality of life-such as cars, a college education or a house.
Balance:
The amount of money in an account, especially after an activity, such as a withdrawal or an interest payment. For loans, the balance is the total that you still need to repay.
 
Balanced Budget:
A budget is balanced when income equals expenses and savings.
Banks:
A place where people save their money.
Bonds:
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
Budget:
A budget helps people keep track of their expenses. Keeping track of expenses ensures that people do not spend more than they earn.
-C-
CDs (Certificates of Deposit):

A certificate from a bank stating that the named party has a specified sum on deposit, usually for a given period of time at a fixed rate of interest.
Example
Checking accounts:
A bank account in which checks may be written against amounts on deposit.
Example
Credit:

An arrangement for deferred payment of a loan or purchase: a store that offers credit; bought my stereo on credit.
Example
Credit card:
A card allowing someone to make a purchase on borrowed money. Credit cards are one of the most popular forms of payment for consumer goods and services in the United States.

Credit history:
A record of how you have handled your finances. It includes information on how much you have saved and how you have paid back any loans or debts. It measures your financial responsibility.
Credit report:
An analysis of your credit history prepared by a credit-reporting agency like Equifax and used by the bank or lender to determine how well you have managed your finances and paid your debts. The banks usually charge about $65.00 for a full credit report. The credit report fee is usually included with your closing costs.
Credit union :
A financial institution that is owned by its members. Credit unions offer services such as savings accounts, checking accounts and CDs.
Collateral:
Property acceptable as security for a loan or other obligation.
Example
Compound interest:
Premium paid for the use of money, -- usually reckoned as a percentage; as, interest at five per cent per annum on ten thousand dollars.
Example
-D-
Debt Income Ratio:
This is the percentage of your gross monthly income devoted to your PITI (principal, interest, property taxes, and insurance) plus other monthly debt payments. Is a formula that calculates how much of your monthly income goes towards paying for monthly housing expenses plus any other debts you may have (like car or credit cards debts) versus other things.
 
Deposit:
A transaction of money from an individual to a financial institution for the purpose of placing in a savings or checking account or CD to be used at a later date.
Deposit Slip:
A written note accompanying a bank deposit which specifices and categorizes the funds (such as checks, bills and coins) being deposited.

 
Digital camera:
Discretionary expenses:
Discretionary expenses are purchases that fall outside of one's "needs". Vacations and money spent on entertainment can be considered discretionary expenses.
Down Payment:
A down payment is the percentage of the total amount of money due on a major purchase. This money is due upfront while the remaining amount is financed.
Dow jones:
The Dow Jones is short for the "Dow Jones Industrial Average." The Dow Jones was created by two newspaper reporters named (you guessed it) Dow and Jones. The Dow Jones is the average gain or loss in price of stock for 30 companies. These companies are not the biggest, they are not the richest, they are not the best, they are just the 30 companies that the staff of today's Wall Street Journal think most accurately reflect the economy. The companies represented in the Dow Jones are usually diverse, just like the economy, and they change over the years, just like the economy.
 
Dividends:
When you invest in stocks and mutual funds, you are becoming a part-owner of companies. If your companies do well, you will get a small share of their profits. These are called dividends.
 
-E-
Earnings:
The money you get from a job, allowance or gifts.
Expenses:
The money you have to spend, like requests for payment for services or items that you have already received.
 
-F-
FDIC: www.fdic.gov
The FDIC (the Federal Deposits Insurance Company) guarantees that you won't lose your money your financial institution. If anything happens to your institution, these agencies will repay you for the money you lost up to $100,000.
Fees:

A charge for professional services: a surgeon's fee.
Financial aid:
Assistance given in the form of money.
Example
Financial Institution:
an institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets.
Fixed expense:
An expense that must be paid and remains constant from month to month. Rent is an example of a fixed expense.
 
Fixed rate:
This is by far the most popular type of mortgage.
It offers you an interest rate that will remain the same for as long as you have your loan. You may repay the loan in 15, 20, 30, 45 years. For more information “fannie mae”
 
 
-G-
Good credit:
A credit history that reflects responsible financial behavior as it relates to making timely payments, paying off loans, and minimal outstanding debt.
 
Good-Faith Estimate:
The Good Faith Estimate or GFE is an estimate of all the costs involved in purchasing or refinancing your property. Some items may vary depending on the title company your loan is closing at, the date it is closing, the size & type of property and other facts that are not known at this time. This list should help explain the items listed line by line on the GFE you received.
 
Gross Monthly Income:
This is the income you earn in a month before taxes or other deductions. In addition, it may also include self-employed, child support, public assistance
or retirement income.
-H-
Home Expense Ratio:
A formula that calculates how much of your monthly income goes towards paying for monthly housing expenses versus other things.
 
-I-
In good standing:
means that you are up-to-date on all your bills and payments. In a checking account, it means that you have a positive balance (more than $0) in your account.
 
Income shortage:
An income shortage occurs when expenses are greater than the income earned. When an income shortage occurs sometimes it is necessary to cut expenses, find ways to increase income, or use savings.
Income surplus:
An income surplus occurs when income exceeds monthly expenses. In the case of income surplus, one can choose to save more money to save or to increase expenses.
Interest:
Interest is the price paid for the use of someone's savings.
Invest:
Investing means to put money into a business, real estate, stocks, bonds or CDs (certificates of deposit) with the purpose of obtaining income or profit some time in the future.
Investment:
Property or another possession acquired for future financial return or benefit.
IRS:www.irs.gov
A United States government agency that is responsible for the collection and enforcement of income tax.
-J-
-K-
-L-
 
Late Charges:
 
Liquidity:
Available cash or the capacity to obtain it on demand: a bank that is increasing its liquidity by shortening the average term of its loans.
Example
Loan:
Money borrowed from a financial institution that must be paid back with interest. People take out loans for purchases they may not have enough cash for. Examples: Car loans, home purchase, college tuition.
Long term goals:
Goals that are expected to be achieved in a time period that is more than a year away. Examples: college education, buying a car, buying a home.
Example
-M-
Market Index:
A market index is a collection of different kinds of stocks that, taken all together, give a good picture of the entire market.
 
Minimum balance:
The least amount of money that is required to maintain the account.
Miscellaneous:
Mortgage:
Loan issued from a financial institution that is used to purchase a home.
 
Mortgage amortization:
calculates the interest charges for the month on the amount you borrowed and then adds an amount to repay the loan based on a 30- or 15-year repayment
schedule. During the first few years, most of each payment is applied toward the interest owed.
During the final years of the loan, payment amounts are applied almost exclusively to the remaining principal.
 
Mutual funds:
Mutual investment companies "pool" your money with that of thousands of other like-minded individuals and invest it in stock, bonds, and other securities. It's like being in an investment club without a meeting. When you invest through a typical mutual fund, several hundred million to a billion dollars or more is invested along with your money.
-N-
Needs:
Needs are most important. These are things people must have for survival. For
example, some things we need are clothing and medical attention.
Example
Nest Egg :
Savings accumulated for future use that offer a sense of security. i.e. retirement, purchase of a home.
 
Net Income:
Refers to the money you take home after tax deductions. It is the money you receive on your paycheck statement.
-O-
Opportunity Cost:
A good or service that must be given up in order to obtain other goods and services.
 
Overdraw:
-P-
Penalties:
Additional fees charged for transactions that are not permitted such as early withdrawal on a CD.
Property Appraisal:
 
 
-Q-
-R-
Return:
To produce or yield (profit or interest) as a payment for labor, investment, or expenditure.
Risk:
Chance of losing your money out.
-S-
Safety:
The level of risk involved in an investment. The lower the chance that a person will lose their money the safer the investment.
 
Savings:
The part of a person's income that is not spent.
 
Savings accounts:
An account that draws interest at a bank.
Savings bonds:
The most common kind of lending investment traded on securities markets. When you buy a bond, you are loaning money to the government or a company. When a bond is issued, it includes a specified maturity date at which you will be repaid your money (principal) plus interest.
Service Fees:
A charge for professional services: a surgeon's fee.
 
Secured:
 
Share:
Short term goals:
A goal acquired over a relatively brief time.
 
Simple interest:
Interest paid only on the original principal, not on the interest accrued.
Stock:
The capital or fund that a corporation raises through the sale of shares entitling the stockholder to dividends and to other rights of ownership, such as voting rights.
-T-
-U-
Unsecured:
-V-
-W-
withdrawals:
Any amount of money that is taken out of a savings or checking account.
Wall street:
Wall Street is the financial district of the "world", located in New York City. Wall Street is home to New York Stock Exchange, the Federal Reserve Bank and various investment banks.
Wants:
Wants are things that we would like but can live without. A new CD player.
Example
-X-
-Y-
Yield:
The amount of interest paid on a bond divided by the price, a measure of the income generated by a bond. The rate of return on an investment, usually expressed as an annual percentage rate.
-Z-