A Financial Literacy Glossary for Students
Asset - An asset is anything groups or individuals own that has economic value, like money, a house, or a retirement plan.
Bond - A bond entitles the holder to receive the amount that the holder lent to a business or government, along with interest for the period of the loan, at a specific time in the future.
Beneficiary - The beneficiary is the person or entity that receives some or all of a deceased person's assets.
Capitalism - Capitalism, the opposite of communism, is an economic system in which private individuals and companies control the industries, trade, and means of production.
Checking Account - A checking account is a non-interest bearing account that the signatory uses to pay expenses and receive income.
Collateral - Collateral is a property guarantee that a borrower promises to give a lender if the borrower defaults on a loan and is unable to pay.
Compound Interest - Compound interest is when interest is calculated on the original value of the loan (the principle) along with the interest already charged.
Credit Card - A credit card allows the user to buy goods and services in advance, then pay later with interest.
Credit Score - Your credit score is a number that represents how likely you are to repay a home loan.
Deductible - The deductible is any loss not covered by an insurance policy.
Default - Default is when a party to an agreement doesn't fulfill the contractual obligations or when a borrower doesn't pay back a loan.
Depression - A depression is an economic downturn during which spending goes down, unemployment rises, and people sink into poverty.
Economy - The economy is a country's resources, goods, and services and how the government, corporations, and consumers make decisions about their utilization, consumption, and production.
FDIC (Federal Deposit Insurance Corporation) - FDIC gives insurance to legitimate banks that follow the laws in an amount of $250,000 per depositor.
Garnishment - A court can order that part of an employee's salary be deducted to pay a debt or another financial obligation.
Identity Theft - Identity theft is when someone uses another person's confidential information to commit theft or fraud.
Inflation - Inflation is when the price of goods and services rises, which reduces the consumer's purchasing power.
Lease - A lease is an agreement between two parties that governs the rules and conditions for the renter's use of an asset.
Monopoly - A monopoly is when one company gets rid of its competitors and becomes the sole purveyor of a certain good or service.
National Debt - When a government spends money it doesn't have, it has to borrow from its citizens or other countries. The aggregate of that amount is called the national debt.
Opportunity Cost - The opportunity cost is the expense of choosing one option instead of another.
Profit - Profit is the amount a business earns after subtracting its expenses from its gross income.
Rate of Return - The rate of return is the annual percentage of profit you make on an investment.
Simple Interest - Simple interest is only calculated on the initial loan amount, not the subsequent interest. It's the opposite of compounded interest.
Tax - Taxes are the government's way of charging its citizens fees for the public goods and services they use.
Credit Clash - Make the right decisions to improve your credit score.
Payback - This text-based RPG shows students that they can graduate from college without too much student loan debt.
Financial Football - Immerse yourself in a virtual NFL experience while gaining personal finance skills.
Stax - How much money can you accrue after 20 years of investments?
Hit the Road - Budget your money carefully on a virtual road trip.
Spent - Low-income living affects millions of Americans. Try to survive on a basic budget.
Shady Sam - Avoid real-life loan sharks by seeing the disadvantages of taking out high-interest loans.
Money Magic - Can you handle a $50,000 budget and spend it wisely?
The Uber Game - Being self-employed isn't a picnic. Experience the life of an Uber driver.
Budget Creating for Students - Here are some convenient guidelines for creating and managing a student budget.
Budget Worksheet - Use this printable worksheet for your budget.
Student Loan Payment Calculator - Calculate the monthly payment you owe on your student loans.
Budgeting Tips - Stay afloat with these budgeting tips.
Lemonade Stand - Make the most profit with this classic game.
Financial Literacy Basics - Fill the gaps in your personal finance knowledge.