Financial Terms Study Guide

1. – A form you fill out so your job knows how much tax to take from your paycheck.
4. – A person you support financially who can lower your taxes if claimed.
5. Inquiry (Hard Pull) – When a lender checks your credit because you applied for a loan or credit, which can lower your score a little.
7. – A form showing how much money you earned and how much tax was taken out that year.
10. Security – A government program that gives money to retired people, disabled people, and some families.
13. IRA – A retirement account where you invest money after taxes, and it grows tax-free.
14. Fee – A fee charged when you spend more money than you have in your account.
16. – Protection that helps cover costs if unexpected problems happen, like accidents.
17. – A collection of all your investments, like stocks or bonds.
19. – Money people pay to the government to help pay for public services.
22. – Spreading your money across different investments to lower risk.
23. – Paying monthly to use something, like a car, for a set time instead of buying it.

1. – Taking money out of your bank account.
2. – When something loses value over time.
3. Title – The legal paper that proves who owns a car.
6. – Putting money into a bank account.
8. 401(k) Plan – A retirement savings account through your job where money grows before taxes are taken out.
9. Pre-Owned Car – A used car checked, repaired, and approved by the company that made it.
11. Report – A record of your credit history, including loans and payments.
12. Tax – Money taken from your paycheck and paid to the government.
15. – Not paying bills or credit payments on time.
18. Deduction – An amount that lowers how much of your income gets taxed.
20. Mark – Negative credit history, like missed payments or collections, that stays on your report for years.
21. – A small piece of ownership in a company that can be bought or sold.