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Chapter 2: Saving
Chapter 2: Saving
20
Business
12th Grade
08/20/2014

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Term
Compound Interest
Definition
Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually
Term
Emergency Fund
Definition
Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation
Term
Interest Rate
Definition
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
Term
Five Foundations
Definition
The five steps to financial success
Term
Sinking Fund
Definition
Saving money over time for a large purchase
Term
First Foundation
Definition
Save a 500$ emergency fund
Term
Second Foundation
Definition
Get out of debt
Term
Third Foundation
Definition
Pay cash for your car
Term
Fourth Foundation
Definition
Pay cash for college
Term
Fifth Foundation
Definition
Build wealth and give
Term
Budget
Definition
An itemized summary of probable expenditures and income for a given period
Term
Deficit
Definition
The amount by which expenditures exceed income
Term
Expenditure
Definition
An amount of money spent
Term
Fixed Expense
Definition
An unchanging expenditure
Term
Flexible Expense
Definition
An expenditure that varies
Term
Income
Definition
Money received
Term
Savings
Definition
Money that is not spent
Term
Surplus
Definition
An amount of money remaining after all expenses have been met
Term
Take-home Pay
Definition
Money received after all adjustments and deductions are made
Term
Unexpected Expense
Definition
An unforeseen cost
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