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mortgage that has fluctuating principal and interest payments. ARMs often begin as fixed mortgages and after a certain number of years shift into adjustable rates [ Ans: ] adjustable rate mortgage a type of insurance used by vehicle owners to cover costs associated with car accidents [ Ans: ] auto insurance a chart that documents how much money an individual earns and spends [ Ans: ] budget the relationship between income and expenses in a budget. ex: if you spend more money than you have coming in, you have negative cash flow [ Ans: ] cash flow a savings vehicle offered through banks with a set maturity date. ex: if you put $5,000 into a five year CD, you cannot withdraw the money until the five year maturity date without facing penalties. however, interest rates are usually higher in CDs that traditional savings accounts, making them desirable for longer term savings [ Ans: ] certificate of deposit money collected by some city governments to be used for city public services, such as sidewalks and city water systems [ Ans: ] city income tax the ability to purchase goods or services with the promise to pay for it at a later time [ Ans: ] credit a number ranging from 300 to 850 representing a persons credit history. a credit score is calculated based on 10% credit in use, 10% new credit, 15% credit history, 30% amounts owed and 35% payment history [ Ans: ] credit score demonstrating trust in repayment of borrowed money [ Ans: ] creditworthiness a plastic card that allows an individual to make a purchase on credit [ Ans: ] credit card a plastic card that allows an individual to make a purchase using funds from his or her bank account [ Ans: ] debit card money withheld from a paycheck for tax or savings purposes [ Ans: ] deductions money spent on items and bills [ Ans: ] expenses money collected by the federal government to be used for a variety of national public services, such as military, national parks and monuments [ Ans: ] federal income tax income and expenses that are the same each month [ Ans: ] fixed interest payment that remains constant for the duration of the loan. ex: if you have a fixed interest rate loan at 5%, you will pay the consistent amount of 5% on the money you borrowed until it is fully paid back [ Ans: ] fixed interest rate loan income and expenses that vary each month [ Ans: ] flexible total pay before deductions [ Ans: ] gross income a type of insurance that minimizes financial risk related to medical expenses. many employers offer health insurance as part of a benefits package to employees [ Ans: ] health insurance protects a home by providing coverage in the event of damage or loss to the house itself or personal belongings inside due to the theft, fire, accidents, etc. [ Ans: ] homeowners insurance money earned through the employment [ Ans: ] income an investment tool for individuals to save for retirement. there are two different types of IRAs for individuals: traditional and roth [ Ans: ] individual retirement account additional fee paid on a monthly basis to the lender [ Ans: ] interest person or institution that provides you with the loan [ Ans: ] lender amount of money you borrow, which must be paid back to the lender within a given period of time [ Ans: ] loan a type of insurance that protects against the loss of income as a result of a