Financial Concepts Flashcards

Front

Sources of income

Back

Wages, rentals, interest, capital, profits, investments, entrepreneurship

Front

Exemption (allowance)

Back

Allowance is used to reduce the amount of taxed income

Front

Gift cards and inactivity fees

Back

A monthly inactivity fee may begin after 12 months; involves closed loop and open loop systems

Front

Discretionary income

Back

Income not allocated for food or shelter

Front

Pay Yourself First

Back

Automatically route money from paycheck to savings before paying bills

Front

CD (Certificate of Deposit)

Back

A time deposit with a penalty if cashed before maturity

Front

Highest interest rates on loans

Back

Pawnshops, payday lenders, tax refund lenders, finance companies

Front

Credit union advantage

Back

Member-owned cooperative with lower interest rates on loans

Front

Overdraft protection

Back

Feature to keep checking account from overdrafting; a loan that is paid back

Front

Closed loop system

Back

A type of gift card system where the card can only be used at specific stores