Monetary Assets - ANSWER-- financial resources that are legal tender (cash) or can be
converted to legal tender very quickly
- ex: currency in wallet, coins in a pickle jar, checkings/savings accounts, certificates of
deposit, money market accounts
Goals of effective cash management - ANSWER-- convenience
- cost
- consideration
- security
- gain
Convenience - ANSWER-easy-to-access services without travel or hassle
Cost - ANSWER-you are not charged fees and/or penalties
consideration - ANSWER-you can get personal help when you need it
security - ANSWER-low risk of losing any money
gain - ANSWER-you are paid some interest from those who use your cash
liquidity - ANSWER-refers to how quickly and easily you can access your money
emergency fund - ANSWER--liquid financial resources to meet unexpected and
immediate needs
- should total 3-6 months of living expenses (or even income)
Federal Deposit Insurance Corporation (FDIC) - ANSWER-- government agency which
deposits at most commercial banks up to $250,000 per depositor... $500,000 for joint
depositors
Checking Accounts - ANSWER-
National Credit Union Administration - ANSWER-
Savigns Accounts - ANSWER-
, Credit Bureaus - ANSWER-Credit bureaus, also called credit agencies or credit
reporting agencies, are companies that collect credit
information about individuals. They then calculate a credit score for each individual
based on this information.
Note that credit bureaus are private, for- profit businesses-they are not part of the
government, though they
are overseen by various government agencies. In the United States, the three major
credit bureaus are
Equifax, Experian, and TransUnion.
Payday Loan - ANSWER-a relatively small amount of money lent at a high rate of
interest on the agreement that it will be repaid when the borrower receives their next
paycheck.
Debt consolidation - ANSWER-The act of combining all debts into one monthly
payment, typically extending the terms and the length of time required to repay the debt.
Tracking Cash Flow - ANSWER-
Credit - ANSWER-An arrangement to receive cash, goods, or services now and pay for
them in the future.
Interest - ANSWER-A sum paid or charged for the use of money or for borrowing money
Refinance - ANSWER-To revise a loan agreement to make the
terms of payment more suitable to a
borrower's present income and ability to
repay.
PITI - ANSWER-Principal, Interest, Taxes, Insurance
Home Equity - ANSWER-The current market value of a home minus the remaining
mortgage balance
Mortgage - ANSWER-a specific type of loan that is used to buy real estate
One Percent - ANSWER-1 point when getting a mortgage = 1% of the property value
that you can pay to have a lower payment on your loan
Credit card - ANSWER-a small plastic card issued by a bank, business, etc., allowing
the holder to purchase goods or services on credit.
Monetary assets - ANSWER-Assets that can be quickly and easily converted into cash
Certificate of Deposits (CD's) - ANSWER-A savings alternative in which money is left on
deposit for a stated period of time to earn a specific rate of return.
Liquidity - ANSWER-the ease with which an asset can be converted into cash
Money Market account - ANSWER-a savings account that requires a minimum balance
and earns interest that varies from month to month
Credit Unions - ANSWER-Nonprofit, member-owned financial cooperatives that offer
the full variety of banking services to their members.
Goals of cash management - ANSWER-The goals of effective cash management
include convenience (easy-to-access services without travel or hassle), cost (you are
not charged fees and/or penalties), consideration (you can get personal help when you
need it), security (low risk of losing any money), and gain (you are paid some interest
from those who use your cash
Family Emergency Fund - ANSWER-a resource you can use to meet unexpected,
immediate needs for money caused by job loss, car problems, an emergency surgery,
or myriad other disasters
converted to legal tender very quickly
- ex: currency in wallet, coins in a pickle jar, checkings/savings accounts, certificates of
deposit, money market accounts
Goals of effective cash management - ANSWER-- convenience
- cost
- consideration
- security
- gain
Convenience - ANSWER-easy-to-access services without travel or hassle
Cost - ANSWER-you are not charged fees and/or penalties
consideration - ANSWER-you can get personal help when you need it
security - ANSWER-low risk of losing any money
gain - ANSWER-you are paid some interest from those who use your cash
liquidity - ANSWER-refers to how quickly and easily you can access your money
emergency fund - ANSWER--liquid financial resources to meet unexpected and
immediate needs
- should total 3-6 months of living expenses (or even income)
Federal Deposit Insurance Corporation (FDIC) - ANSWER-- government agency which
deposits at most commercial banks up to $250,000 per depositor... $500,000 for joint
depositors
Checking Accounts - ANSWER-
National Credit Union Administration - ANSWER-
Savigns Accounts - ANSWER-
, Credit Bureaus - ANSWER-Credit bureaus, also called credit agencies or credit
reporting agencies, are companies that collect credit
information about individuals. They then calculate a credit score for each individual
based on this information.
Note that credit bureaus are private, for- profit businesses-they are not part of the
government, though they
are overseen by various government agencies. In the United States, the three major
credit bureaus are
Equifax, Experian, and TransUnion.
Payday Loan - ANSWER-a relatively small amount of money lent at a high rate of
interest on the agreement that it will be repaid when the borrower receives their next
paycheck.
Debt consolidation - ANSWER-The act of combining all debts into one monthly
payment, typically extending the terms and the length of time required to repay the debt.
Tracking Cash Flow - ANSWER-
Credit - ANSWER-An arrangement to receive cash, goods, or services now and pay for
them in the future.
Interest - ANSWER-A sum paid or charged for the use of money or for borrowing money
Refinance - ANSWER-To revise a loan agreement to make the
terms of payment more suitable to a
borrower's present income and ability to
repay.
PITI - ANSWER-Principal, Interest, Taxes, Insurance
Home Equity - ANSWER-The current market value of a home minus the remaining
mortgage balance
Mortgage - ANSWER-a specific type of loan that is used to buy real estate
One Percent - ANSWER-1 point when getting a mortgage = 1% of the property value
that you can pay to have a lower payment on your loan
Credit card - ANSWER-a small plastic card issued by a bank, business, etc., allowing
the holder to purchase goods or services on credit.
Monetary assets - ANSWER-Assets that can be quickly and easily converted into cash
Certificate of Deposits (CD's) - ANSWER-A savings alternative in which money is left on
deposit for a stated period of time to earn a specific rate of return.
Liquidity - ANSWER-the ease with which an asset can be converted into cash
Money Market account - ANSWER-a savings account that requires a minimum balance
and earns interest that varies from month to month
Credit Unions - ANSWER-Nonprofit, member-owned financial cooperatives that offer
the full variety of banking services to their members.
Goals of cash management - ANSWER-The goals of effective cash management
include convenience (easy-to-access services without travel or hassle), cost (you are
not charged fees and/or penalties), consideration (you can get personal help when you
need it), security (low risk of losing any money), and gain (you are paid some interest
from those who use your cash
Family Emergency Fund - ANSWER-a resource you can use to meet unexpected,
immediate needs for money caused by job loss, car problems, an emergency surgery,
or myriad other disasters
