Tips and Tools For Financial Success - Newton Free Library

Privacy Notice: A written explanation of how the company handles and shares your personal financial
information. You will usually receive a privacy notice when you open an account or become a customer
of a financial company, once a year after opening an account, and any time the financial company
changes its privacy policy.
Reconciliation: The act of resolving the difference between the statement balance and your check
register balance.
Refund Anticipation Loans: Short-term loans secured by your income tax refund.
Rent-to-Own Service: A service that lets you use an item for a period of time by making monthly or
weekly payments. You can opt to purchase the item(s) you are renting as well, but it is usually much more
expensive than purchasing the item (s) outright.
Reconciliation: The act of resolving the difference between the statement balance and your check
register balance.
Remittance: A money transfer that goes to a bank or a person in another country.
Retirement Investments: Money you invest over a long period of time so that you will have money to
live on when you are no longer working.
Revocable Trust Account: A deposit account held as a payable on death (POD) or in trust for (ITF)
account, or one that is established in the name of a formal revocable trust (also known as a living or
family trust account).
Roth Individual Retirement Arrangements (IRAs): Contributions to a Roth IRA are not tax
deductible while contributions to a traditional IRA may be deductible. The distributions (including
earnings) from a Roth IRA are not included in income.
Rule of 72: A formula that lets you estimate how long it will take for your savings to double in value
given a particular interest rate. This calculation assumes that the interest rate remains the same over
time.
Savings Account: An account that earns interest.
Signature Card: A form you complete and sign when you open an account indicating you are the
account owner.
Single Account: A deposit account owned by one person and titled in that person’s name only, with no
beneficiaries.
Skimming: When criminals steal credit/debit card numbers by using a special storage device when
processing your card.
Spending Plan: A step-by-step plan for meeting expenses in a given period of time.
Statement Savings Account: An account that earns interest. You will usually receive a quarterly
statement that lists all your transactions–withdrawals, deposits, fees, and interest earned.
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