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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Stocks: Parts of a company, called shares. If the company does well, you might receive periodic<br />
dividends based on the number of shares you own. Dividends are part of a company’s profits that it gives<br />
back to you, the shareholder.<br />
Substitute Check: An electronic image of your check that has the same st<strong>and</strong>ing as the actual check.<br />
Thrift: A financial institution that operates under federal <strong>and</strong> state laws <strong>and</strong> regulations. Thrifts make<br />
loans, pay checks, accept deposits, <strong>and</strong> provide other financial services.<br />
Traditional Individual Retirement Arrangements (IRAs): Contributions to a traditional IRA<br />
may be tax deductible, based on the amount of your contribution <strong>and</strong> your income. The earnings on the<br />
amounts in your IRA are not taxed until they are distributed.<br />
Transaction: A banking activity (e.g., depositing or withdrawing money, using your Automated Teller<br />
Machine (ATM) or debit card, or having checks direct-deposited into your account).<br />
Treasury Inflation-Protected Securities (TIPS): Provides protection against inflation, <strong>and</strong> the<br />
interest rate is tied to the Consumer Price Index.<br />
Truth in Savings Act (TISA): An act that requires financial institutions to tell you the terms of<br />
consumer deposit accounts (e.g., checking or savings accounts). It also requires the bank to periodically<br />
send you statements for your accounts.<br />
Unsecured Loan: A loan not backed by collateral. Credit cards are often unsecured loans, although<br />
some are secured by a bank account.<br />
U.S. Savings Bonds: A long-term investment option backed by the full faith <strong>and</strong> credit of the U.S.<br />
Government. Savings bonds can be purchased at a financial institution for as little as $25 or through<br />
payroll deductions.<br />
U.S. Treasury Securities: Loans to the U.S. Government for a certain period of time, called a term.<br />
Treasury securities are backed by the full faith <strong>and</strong> credit of the U.S. Government <strong>and</strong> include Treasury<br />
bills (T-bills), notes (T-notes), <strong>and</strong> bonds (T-bonds).<br />
Variable Annuity: An insurance contract that invests your premium in various mutual fund-like<br />
investments.<br />
Variable rate: An interest rate that may change during the loan term.<br />
Withdrawal: The process of taking money from your bank account.<br />
Wire Transfer: A form of money transfer from one bank to another.<br />
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