Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
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Interest: A percentage of your balance that the bank pays you or an amount of money for keeping your<br />
money at that bank or the amount of money a financial institution charges for letting you use its money.<br />
Investment: A long-term savings option that you purchase for future income or financial benefit.<br />
Joint Account: A deposit account owned by two or more people <strong>and</strong> titled jointly in the co-owners’<br />
names only, with no beneficiaries.<br />
Loan: Money you borrow from a bank with a written promise to pay it back later.<br />
Long-Term Care: Care or help with daily activities for those with a chronic illness or disability.<br />
Minimum Balance: A certain balance that banks might require you to have to open an account, earn<br />
interest, or avoid fees.<br />
Money Market Account: An account that usually pays a higher rate of interest, <strong>and</strong> it usually<br />
requires a higher minimum balance to earn interest than a regular savings account does. You can make<br />
deposits <strong>and</strong> withdrawals.<br />
Money Order: It is similar to a check. It is used to pay bills or make purchases when cash is not accepted.<br />
Mutual Fund: A professionally managed collection of money from a group of investors. A mutual fund<br />
manager invests your money in some combination of various stocks, bonds, <strong>and</strong> other products.<br />
Net Income: Gross income minus deductions such as Social Security <strong>and</strong> other taxes.<br />
Non-Deposit Investment Products: Products including stocks, bonds, mutual funds, <strong>and</strong> annuities.<br />
The FDIC does not insure these products.<br />
Payday Loan: A short-term loan. The loan service cashes the check on your payday, at which time<br />
your loan is paid in full.<br />
Payroll Deduction Individual Retirement Arrangements (IRA): An employee establishes an<br />
IRA (traditional or Roth IRA) with a financial institution <strong>and</strong> authorizes a payroll deduction for the IRA.<br />
Penalty APR: The terms of your credit card agreement may provide that the creditor will permanently<br />
increase the interest rate on your credit card by a large amount if you do not pay your credit card bill on<br />
time, or if you exceed your credit limit.<br />
Pharming: When criminals seek to obtain personal or private information by making fake websites<br />
appear legitimate.<br />
Phishing: When criminals send out unsolicited emails that appear to be from a legitimate source in an<br />
attempt to trick you into divulging personal information.<br />
Predatory Lending: Use of certain marketing tactics in making loans, such as abusive collection<br />
tactics <strong>and</strong> loan terms that deceive borrowers into thinking they are receiving better loan terms than<br />
they really are.<br />
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