Financial Terms
Accrued Interest - Interest that has been earned, but not yet paid.
Annual Fee - The amount a cardholder pays to a credit card company for the right to hold a particular credit card.
Amortization - The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time.
Annual Percentage Rate - The cost of credit for personal loans, including mortgages, expressed as a percentage per year.
Assets - Things you own, including real estate, investments, and personal property. Anything of worth that is owned.
Bankruptcy - State of being unable to pay debts.
Bear Market - Anextended period of general price decline in the stock market as a whole.
Blue Chip Stock - A common stock which is issued by larger, well-established corporations.
Bond - Bonds are debt and are issued for a period of more than one year. When an investor buys bonds, he or she is lending money.
Budget - A financial plan for saving and spending money.
Bull Market - An extended period of generally rising prices in the market as a whole.
Capital Gain - Profits from the sale of an investment or asset.
Certificates of Deposit (CD) - A deposit made, usually to a bank or credit union, for a specified amount of time for a specified interest rate.
Collateral - An asset that can be repossessed if a borrower defaults. Assets pledged as security for a loan.
Credit - Money loaned. A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later date.
Creditor - Lender of money.
Currency - Money.
Debt - Money borrowed.
Debt Consolidation - The replacement of multiple loans with a single loan.
Default - Failure to make timely payment of interest or principal on a debt.
Dow Jones Industrial Average - a composite average of 30 industrial stocks chosen by Dow Jones as representative of stock market activity.
Equity - The amount of ownership that has been built up by the holder of the mortgage through payments and appreciation.
Financial Planner - A person who analyzes an individual's personal finances to help them establish a personal financial strategy.
Inflation - A general increase in the price level of goods and services.
Interest - The cost for the use of borrowed money.
Mortgage - A mortgage is a legal contract that describes the terms of the loan obtained to buy a piece of property.
Net Income - The income you have after you've paid taxes and any and all other liabilities, expenses or charges against it.
Net Worth - The amount of wealth calculated by taking the total value of assets owned and subtracting all liabilities.
Principal - The capital sum, as distinguished from interest or profit.
Property Taxes - Taxes assessed on real estate.
Stock - Shares of ownership in a company.