Personal Finance Vocab

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Across
  1. 2. Cost of the next best use of your money or time when you choose to buy or do one thing rather than another.
  2. 3. Money you owe another person or a business.
  3. 8. An open-ended loan that allows you to borrow money up to a certain limit and carry over an unpaid balance from month to month. There is no fixed time to repay the loan as long as you make the minimum payment due each month. You pay interest on any outstanding credit card loan balance.
  4. 11. When you earn interest on both the money you save and the interest you earn.
  5. 13. The insured’s request for payment due to loss incurred and covered under the policy agreement.
  6. 15. Total pay before taxes and other deductions are taken out
  7. 18. A percentage of a sum borrowed that is charged by a lender or merchant for letting you use its money. A bank or credit union may also pay you an interest rate if you deposit money in certain types of accounts.
  8. 19. The federal government collects taxes based on the earnings of individuals and businesses, called an income tax. The federal income tax pays for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.
Down
  1. 1. Something that is a disadvantage, money owed, or a debt or obligation according to law.
  2. 4. A person or organization that borrows something, especially money from a bank or other financial institution.
  3. 5. A number created from a scoring model that uses information from your credit history.
  4. 6. Money that is made in a business after all the costs and expenses are paid.
  5. 7. An account at a bank (sometimes called a share draft account at a credit union) that allows you to make deposits, pay bills, and make withdrawals.
  6. 9. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.
  7. 10. A fixed or limited period of time for which something lasts or is intended to last (for example, a five-year loan, a three-year certificate of deposit, a one-year insurance policy, a 30-year mortgage).
  8. 12. Loans that are used to buy a home or to borrow money against the value of a home you already own.
  9. 14. In the lending context, principal is the amount of money that you originally received from the lender and agreed to pay back on the loan with interest. In the investment context, it is the amount of money you contribute with the expectation of receiving income.
  10. 16. Money that needs to be repaid by the borrower, generally with interest.
  11. 17. An organization or person that lends money with the expectation that it will be repaid, generally with interest.