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| a plan for using your money in the best way to suit your needs and wants |
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-return on the investment that you made in stock
-converted or expressed as a percentage of the original principal
dividends
-a share of a corporation’s profit that is paid to shareholders on a quarterly basis |
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| money taken from gross pay to get net pay |
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| either the act of taking the taxes, or "withholding tax" etc. |
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| ability to plan how to get the best use out of your money |
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| Two things you need to stick to a budget? |
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HINT: SELF _ SELF _
DISCIPLINE, MOTIVATION |
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| steps in creating a budget: |
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HINT: SEEPB
1. set short and long term goals
2. estimate income
3. estimate expenses
4. Plan for savings and investments
5. Balance and adjust where needed |
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| elements of a regular checking account |
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a few checks are written each month
-not much money in the account
-there may be a minimum balance required or fees are charged |
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must maintain a minimum balance to earn interest or there are fees
-unlimited number of checks |
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-are held in multiple names with both parties able to write checks
-Choose the account that’s right for you |
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-created when you open your account
-you MUST always sign checks the same way
-used to verify identity along with other forms of identification
-licenses
-social security cards
-birth certificates |
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-when you write checks on an account beyond the same amount that is in the account
-it is a line of credit attached to your account that is automatically activated when it’s needed so that you don’t have checks “bounce” or be returned for “insufficient funds”
-since it’s unsecured, it may have a higher interest rate |
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-A bank is contacted when the account owner does not want a check to be paid
-Done if…
-a check is lost or stolen
- there is a problem with a g/s that has been provided
-must be for a legit reason
-usually a small fee attached |
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-Like credit cards but money is taken immediately from your checking account
-Easy for thieves…sumthin or other |
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| can be used to pay fixed accounts automatically |
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| -checking accounts provide accurate records of how money is spent either personally or for business |
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| - person to whom check is written who will cash it |
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| person who writes the check |
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| - bank or credit union where the account is held |
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| book used to record the account transactions by the account holder |
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| signature or name written on the back of the check before it is deposited |
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sent by the bank as a record of the account’s monthly transactions
-includes deposits, withdrawals, fees charged, and any interest charged |
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| ones that have been processed with the money out of the account |
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-when your records are compared to the bank records to verify the amount of many in your account
-first, make sure that the bank has processed all of your checks and deposits |
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ones that are written but not yet cashed
(processed by the bank) |
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-when you put off spending money now to get something else later
-involves the idea of delaying gratification (not a real popular idea) |
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| most ppl base their retirement planning on... |
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-social security
-savings (money increased based on years of earned interest)
-retirement |
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| money earned on the principal in an account |
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| money is earned on the original principal as well as the interest that has been previously earned over a period of time. It is usually added to the account quarterly |
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| -all transactions are recorded in a book that is carried by the account holder |
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| statement savings account |
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| -statements are sent monthly that list all transactions that have affected the account |
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| traditional savings account |
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| -pays a very low interest rate |
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| Certificate of Deposit/CD |
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-specific amounts of money are deposited into an account
-done for a fixed period of time
-it can be redeemed after its maturity date
-usually has a higher fixed interest rate
-usually a penalty for early redemption |
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-Used as part of a “pool” of money to buy bonds and investment
-may pay a higher rate of interest
-you may lose part or all of your original money
-not FDIC insured
-requires a high minimum balance
-limited amount of checks can be written |
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| money market deposit account |
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-FDIC insured
-owned by the bank or credit union |
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-Federal Deposit Insurance Corporation
-the government insures all accounts up to $250,000
-This applies to banks and credit unions |
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-How easily an investment can be turned into cash
-Savings accounts are best because they’re easily converted to cash |
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-The likelihood that inflation will increase at a faster rate than the amount of interest you can earn
-this will result in a loss of your “purchasing power”
-can really hurt if you are locked into a fixed low rate item such as a CD |
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-another way to make money with stock is to sell it for more than you paid for it (capital gains) taxed by gov’t
-if you have lost money on the sale, you have lost money with the stock (capital loss). Able to be written off against taxes |
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usual way corporate ownership us shown
-can vote on corporate decisions or who is on the Board of Directors |
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- more expensive than C.S.
-more common |
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-federal-US savings bond
-municipal-local like for schools
-corporate |
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| -junk-name given to bonds from corps. with no history |
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-any property with the buildings and any natural resources that may be there
-price set by supply and demand
-undeveloped property
-developed property
-houses, buildings, and other improvements |
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