Financial Glossary

Money Basics

• Asset: Something you own that has financial value, such as money, a home, a vehicle, or investments.
• Liability: Money or debt you owe to someone else.
• Income: Money you receive from work, a business, investments, or other sources.
• Expense: Money you spend on things such as housing, food, transportation, utilities, and entertainment.
• Cash Flow: The movement of money coming in and going out.
• Budget: A plan for how you will use your money.
• Savings: Money you set aside instead of spending now.
• Net Worth: The value of everything you own minus everything you owe.
• Financial Goal: Something you want to accomplish with your money, such as buying a car, paying off debt, or saving for retirement.

Accounts & Everyday Banking

• Checking Account: An account designed for everyday spending, purchases, bill payments, and other transactions.
• Savings Account: An account where you keep money you want to save.
• Deposit: Money added to an account.
• Withdrawal: Money taken out of an account.
• Balance: The amount of money currently in an account or the amount still owed on a debt.
• Direct Deposit: Money, such as a paycheck, electronically deposited into your account.
• Debit Card: A card that generally uses money from your checking account to make purchases.
• ATM: An automated teller machine that allows basic transactions such as deposits and withdrawals.
• Overdraft: When a transaction causes your account to fall below the available funds.

Borrowing & Credit

• Credit: The ability to borrow money with an agreement to repay it.
• Loan: Money borrowed that you agree to pay back, usually over a set period.
• Principal: The amount of money borrowed, not including interest.
• Interest: Money paid for borrowing money, or money earned on certain savings.
• APR (Annual Percentage Rate): The yearly cost of borrowing money expressed as a percentage.
• Collateral: Property or another asset used to secure a loan.
• Credit Score: A number based on information in your credit history that lenders can use when evaluating credit.
• Credit Report: A record containing information about your history of borrowing and repaying money.
• Debt: Money you owe.
• Monthly Payment: The amount you're expected to pay toward a loan or debt each month.
• Loan Term: The length of time you have to repay a loan.
• Amortization: Paying down a debt gradually through scheduled payments.

Saving & Building Your Future

• Investment: Money put into an asset with the goal of increasing its value or earning income.
• Emergency Fund: Money set aside specifically for unexpected expenses.
• Retirement Savings: Money you save or invest for the years after you stop working.
• Equity: The portion of an asset's value that belongs to you after subtracting what you still owe on it.
• Beneficiary: A person or organization named to receive money or benefits from certain accounts, policies, or plans.
• Financial Well-Being: Being able to manage your financial responsibilities while working toward your goals.

Credit Union Terms

• Credit Union: A member-owned financial institution that provides financial services to its members.
• Member: A person who belongs to a credit union and uses its services.
• Membership: Your relationship with the credit union as one of its members.
• Share Account: A credit union savings account that represents a member's ownership interest.
• Dividend: Money that may be paid on qualifying credit union deposit accounts.
• Member-Owned: A credit union structure in which the people it serves are members rather than simply customers.