Glossary

0–9

1040 Form

The standard federal income tax form used by individuals to file their annual tax returns with the IRS. Module 2

1099 Form

A tax form used to report income received from sources other than a regular employer, such as freelance work, investment earnings, or contract payments. Module 2

401(k)

A retirement savings plan offered by employers that allows employees to contribute pre-tax dollars from their paycheck, often with employer matching contributions. Module 3

50-30-20 Rule

A budgeting guideline that suggests allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. Module 1

A

Above-the-Line Deductions

Tax deductions that reduce your adjusted gross income and can be claimed whether or not you itemize other deductions. Module 2

Account Balance

The total amount of money currently in your bank account or the amount you owe on a credit card or loan. Module 1

Account Holder

The person who legally owns and is responsible for a bank account or credit account. Module 1

Accurate Billing

Charges on bills and statements that correctly reflect the services or products you actually purchased. Module 2

Active Coverage

An insurance policy that is currently in effect and providing protection. Module 2

Active Management

An investment strategy where a professional manager actively buys and sells securities to try to beat market returns. Module 3

Adjusted Gross Income (AGI)

Your total income minus specific deductions, used to determine how much of your income is taxable. Module 2

Administrative Roles

Job positions focused on organizing, managing, and supporting business operations rather than direct production or sales. Module 2

Affordable Care Act (ACA)

A federal law that expanded health insurance coverage and established health insurance marketplaces, also known as Obamacare. Module 2

After-Tax Money

Income that has already had taxes withheld or paid on it. Module 2

Allegations

Claims or accusations that something happened, which have not yet been proven true. Module 2

American Economy

The system of production, distribution, and consumption of goods and services in the United States.

Annual Fees

Yearly charges that some credit cards, memberships, or services require you to pay regardless of usage. Module 1

Annual Income

The total amount of money you earn in one year before taxes and deductions. Module 1

Annual Subscriptions

Services or memberships that charge you once per year for access. Module 1

Annualcreditreport.com

The only federally authorized website where you can get free copies of your credit reports from all three credit bureaus once per year. Module 2

Appreciation

An increase in the value of an asset over time. Module 3

Approved

Officially accepted or given permission, such as when a lender agrees to give you a loan or credit card. Module 2

April 15th

The typical deadline for filing federal income tax returns in the United States. Module 2

APR (Annual Percentage Rate)

The yearly cost of borrowing money expressed as a percentage, including both interest and fees. Module 2

Arbitration

A method of resolving disputes outside of court where a neutral third party makes a binding decision. Module 2

Arbitrator

A neutral person chosen to settle a dispute between two parties outside of court. Module 2

Asset Allocation

The strategy of dividing investments among different categories like stocks, bonds, and cash to balance risk and reward. Module 3

Asset Class

A category of investments with similar characteristics, such as stocks, bonds, or real estate. Module 3

Asset Distribution

How your belongings and financial accounts are divided after your death, either according to your will or state law. Module 3

Assets

Things you own that have value, such as cash, property, investments, or vehicles.

ATM (Automated Teller Machine)

A machine that allows you to withdraw cash, check balances, and perform other basic banking transactions. Module 1

ATM Fees

Charges imposed for using an ATM, especially when using one outside your bank's network. Module 1

Audit

An official examination of your financial records, typically conducted by the IRS to verify tax return accuracy. Module 2

Authorized User

Someone given permission to use another person's credit card account but who is not legally responsible for paying the bill. Module 2

Auto-Debit

An automatic withdrawal from your bank account to pay a bill on a scheduled date. Module 1

Auto-Renew

A feature where subscriptions or services automatically continue and charge you unless you actively cancel. Module 1

Automate

To set up financial tasks to happen automatically without manual intervention each time. Module 1

Automatic Contributions

Scheduled transfers from your paycheck or bank account into savings or retirement accounts. Module 3

Automatic Payments

Recurring payments set up to pay bills on schedule without manual action each month. Module 1

Avalanche Method

A debt repayment strategy where you pay off debts with the highest interest rates first while making minimum payments on others. Module 2

Available Balance

The amount of money in your account that you can currently access and spend. Module 1

Available Credit

The amount of credit you have left to use on a credit card or line of credit. Module 2

B

Bad Debt

Borrowed money used to purchase things that lose value over time or don't generate income, such as credit card debt for consumer goods. Module 2

Balance

The amount of money in your account or the amount you owe on a loan or credit card. Module 1

Bank

A for-profit financial institution that holds deposits, makes loans, and provides other financial services. Module 1

Bank Account

A financial arrangement with a bank or credit union where you can deposit, withdraw, and manage your money. Module 1

Bank Account Information

Details about your account including account number, routing number, and balance. Module 1

Bank Statements

Monthly reports from your bank showing all deposits, withdrawals, and fees for your account. Module 1

Banking

The system and services related to managing money through financial institutions. Module 1

Banking System

The network of financial institutions and regulations that manages money in an economy. Module 1

Bankruptcy

A legal process where individuals or businesses who cannot repay their debts seek relief from some or all of their obligations. Module 2

Base Wage

Your standard hourly pay rate or salary before overtime, bonuses, or other additions. Module 1

Baseline

A starting point or minimum standard used for comparison.

Beneficiary

A person or organization designated to receive money or assets from an account, insurance policy, or estate. Module 3

Benefits

Additional forms of compensation beyond salary, such as health insurance, retirement contributions, or paid time off. Module 1

Binding

Legally enforceable, meaning all parties must follow the terms of an agreement. Module 2

Bodily Injury Liability

Car insurance coverage that pays for injuries you cause to other people in an accident. Module 2

Bond Fund

An investment fund that holds a collection of bonds from various issuers. Module 3

Bonds

Loans you make to governments or corporations that pay you regular interest and return your principal at maturity. Module 3

Borrow

To receive money temporarily with the agreement to pay it back, usually with interest. Module 2

Borrower

A person or entity that receives money as a loan and is obligated to repay it. Module 2

Breach of Contract

When one party fails to fulfill their obligations under a legal agreement. Module 2

Breaks

Periods during a work shift when employees are allowed to rest, which may be paid or unpaid depending on the law and employer policy. Module 2

Brokerage

A company or platform that facilitates buying and selling of investments like stocks and bonds. Module 3

Budget

A plan for how you will spend and save your money over a specific period. Module 1

Budgeting App

Software or mobile application that helps you track income, expenses, and savings goals. Module 1

Buffer

Extra money set aside as a safety margin to handle unexpected expenses or income variations. Module 1

Build Credit

To establish and improve your credit history and score through responsible borrowing and repayment. Module 2

Buy Low, Sell High

An investment strategy of purchasing assets when prices are down and selling when prices rise to make a profit. Module 3

C

Capacity

Your ability to repay a loan based on your income and existing debts. Module 2

Capital

Money or assets used to generate income or wealth, or the initial amount invested in a business. Module 3

Capital Gains

The profit made from selling an asset for more than you paid for it. Module 3

Car Loan

Borrowed money used to purchase a vehicle, which you repay with interest over time. Module 2

Car Payment

The monthly amount you pay toward your auto loan or lease. Module 1

Card Reader

A device used to read payment card information at point-of-sale terminals or ATMs. Module 1

Cash

Physical currency in the form of bills and coins. Module 1

Cash Equivalents

Assets that can be quickly and easily converted to cash with minimal loss of value, such as money market funds. Module 3

Cash Flow

The movement of money in and out of your accounts, tracking income and expenses. Module 1

Cash Out

To withdraw money from an account or convert an asset into cash. Module 1

Catastrophic Loss

A severe financial loss from a major unexpected event like a natural disaster or serious accident. Module 2

CD Laddering

A strategy of buying multiple certificates of deposit with different maturity dates to balance access to money with higher interest rates. Module 3

CDs (Certificates of Deposit)

Time deposit accounts that pay a fixed interest rate in exchange for keeping your money deposited for a specific period. Module 3

Character

In lending, your reputation and history of meeting financial obligations. Module 2

Charitable Donations

Money or goods given to nonprofit organizations, which may be tax-deductible. Module 2

Charity

An organization established to provide help and raise money for those in need.

Check-Cashing Place

A business that cashes checks for a fee, often charging higher rates than banks. Module 1

Checking Account

A bank account designed for frequent deposits and withdrawals, typically used for everyday spending. Module 1

Checks

Written orders directing your bank to pay a specific amount from your account to another person or business. Module 1

Child Tax Credit

A tax benefit that reduces the amount of tax you owe for each qualifying dependent child. Module 2

Claim

A formal request to an insurance company for payment of benefits under an insurance policy. Module 2

Clauses

Specific provisions or sections within a contract that outline particular terms or conditions. Module 2

Cleared

When a transaction has been fully processed and the funds have been transferred between accounts. Module 1

Cloud Computing

Technology that stores and processes data on remote servers accessed via the internet rather than on local devices.

Collateral

An asset you pledge to a lender to secure a loan, which the lender can seize if you fail to repay. Module 2

Collection Agency

A company hired by creditors to recover money from people who haven't paid their debts. Module 2

Collections

The process of attempting to recover money owed on overdue accounts, which can damage your credit. Module 2

Collective Bargaining

Negotiations between a group of employees and their employer regarding wages, benefits, and working conditions. Module 2

Collision Insurance

Car insurance coverage that pays to repair or replace your vehicle if it's damaged in an accident. Module 2

Commercial Bank

A for-profit financial institution that offers services to individuals and businesses. Module 1

Commission

Payment based on a percentage of sales or transactions completed, common in sales positions. Module 1

Commodities

Basic goods like oil, gold, or agricultural products that can be bought and sold. Module 3

Compensation

All forms of payment and benefits received for work, including salary, bonuses, and benefits. Module 1

Competitive Interest Rate

An interest rate that compares favorably to similar offerings from other financial institutions. Module 1

Complaint

A formal statement of dissatisfaction or allegation of wrongdoing filed with a company or regulatory agency. Module 2

Compound Interest

Interest calculated on both the initial principal and accumulated interest from previous periods, allowing money to grow exponentially over time. Module 3

Comprehensive Insurance

Car insurance coverage that pays for damage to your vehicle from non-collision events like theft, vandalism, or natural disasters. Module 2

Concentration Risk

The danger of having too much of your investment portfolio in a single asset, sector, or company. Module 3

Conservative

An investment approach that prioritizes preservation of capital and minimizing risk over maximizing returns. Module 3

Consistency

Maintaining regular financial habits over time, such as saving or investing the same amount each month.

Consumer

A person who purchases goods or services for personal use. Module 2

Consumer Goods

Products purchased for personal or household use rather than for business purposes.

Consumer Rights

Legal protections that prevent unfair business practices and ensure fair treatment in the marketplace. Module 2

Contract

A legally binding agreement between two or more parties that creates obligations each must fulfill. Module 2

Contractor

A self-employed worker hired to complete specific projects or tasks rather than working as a regular employee. Module 2

Contribution Limits

The maximum amount you're allowed to contribute to certain retirement or savings accounts in a given year. Module 3

Copay

A fixed amount you pay for a covered healthcare service, with insurance covering the rest. Module 2

Cosmetic Procedures

Medical procedures performed to alter appearance rather than treat disease or injury, typically not covered by health insurance. Module 2

Cost of Living

The amount of money needed to cover basic expenses like housing, food, and transportation in a particular area.

Counterfeit Cards

Fake payment cards created using stolen card information. Module 2

Coverage

The scope of protection provided by an insurance policy. Module 2

Credit

The ability to borrow money or access goods and services with the promise to pay later. Module 2

Credit Agreement

A contract between a borrower and lender outlining the terms of credit, including interest rate, payment schedule, and fees. Module 2

Credit Bureaus

Agencies that collect and maintain information about your borrowing and payment history. The three major bureaus are Equifax, Experian, and TransUnion. Module 2

Credit Card Debt

Money owed on credit cards that typically carries high interest rates. Module 2

Credit Card Numbers

The unique digits on a credit card used to identify the account and process transactions. Module 2

Credit Card Statements

Monthly reports showing all transactions, payments, fees, and the balance owed on your credit card. Module 2

Credit Cards

Payment cards that allow you to borrow money up to a certain limit to make purchases, which you must repay with interest if not paid in full. Module 2

Credit Freeze

A security measure that restricts access to your credit report, preventing new accounts from being opened in your name. Module 2

Credit History

A record of how you've borrowed and repaid money over time. Module 2

Credit Limit

The maximum amount you're allowed to borrow on a credit card or line of credit. Module 2

Credit Mix

The variety of different types of credit accounts you have, such as credit cards, car loans, and mortgages. Module 2

Credit Profile

The complete picture of your credit history as reported by credit bureaus. Module 2

Credit Report

A detailed record of your credit history, including accounts, payment history, and public records. Module 2

Credit Score

A three-digit number that represents your creditworthiness based on your credit history. Module 2

Credit Union

A nonprofit financial institution owned by its members that typically offers better rates and lower fees than banks. Module 1

Credit Utilization

The percentage of your available credit that you're currently using, calculated by dividing total balances by total credit limits. Module 2

Creditor

A person or company to whom you owe money. Module 2

Current Balance

The total amount in your account or owed on a credit card at this moment, including pending transactions. Module 1

Customer Service

Assistance and support provided by a company to its customers before, during, and after purchases.

Cycle

A recurring period, such as a billing cycle or pay cycle.

D

Damages

Money awarded by a court to compensate someone for loss or injury caused by another party. Module 2

Data Breaches

Incidents where unauthorized parties gain access to sensitive information like credit card numbers or personal data. Module 2

Death Benefit

The amount of money paid to beneficiaries when a life insurance policyholder dies. Module 3

Debt

Money that you owe to others and are obligated to repay. Module 2

Debt Collectors

People or companies hired to collect money from individuals who have not paid their debts. Module 2

Debt Payment

Money paid toward reducing what you owe on loans or credit accounts. Module 2

Debt Repayment

The process of paying back borrowed money according to agreed-upon terms. Module 2

Debt Trap

A situation where debt becomes so large or expensive that it's extremely difficult to escape, often due to high interest rates. Module 2

Debt-to-Income Ratio

The percentage of your monthly income that goes toward paying debts, used by lenders to assess your ability to repay loans. Module 2

Deceptive Business Practices

Misleading or fraudulent actions by companies that harm consumers. Module 2

Decision

A choice made after considering available options and information.

Declined

When a credit card transaction or loan application is rejected. Module 2

Deductible

The amount you must pay out of pocket before your insurance begins to cover expenses. Module 2

Deductions

Expenses that can be subtracted from your income to reduce the amount of taxes you owe. Module 2

Default

Failure to repay a loan or meet the terms of a credit agreement. Module 2

Defendant

The party being sued or accused in a legal case. Module 2

Delayed Gratification

Resisting immediate pleasure or spending in favor of long-term benefits or goals. Module 3

Demote

To move someone to a lower position or rank, often with reduced pay or responsibility. Module 2

Department of Labor

A federal agency that enforces labor laws and protects workers' rights. Module 2

Dependents

People who rely on you financially, such as children or other family members, who may provide tax benefits. Module 2

Deposit

Money you put into a bank account or payment made upfront as part of a purchase agreement. Module 1

Depreciation

A decrease in the value of an asset over time. Module 3

Diagnosis

A medical determination of a health condition or illness. Module 2

Direct Deposit

An electronic transfer of your paycheck or other payments directly into your bank account. Module 1

Disability

A physical or mental condition that limits a person's ability to work or perform daily activities. Module 2

Discipline

The practice of training yourself to follow a plan or maintain good habits, especially regarding money management.

Disclosure

The act of revealing important information, such as fees or risks, that must be provided by law. Module 2

Discrimination

Unfair treatment based on characteristics like race, gender, age, or disability. Module 2

Disposable Income

Money left over after taxes and necessary expenses that can be used for discretionary spending or saving. Module 1

Dispute

To challenge or question a charge, debt, or error on your credit report or bill. Module 2

Diversification

Spreading investments across different asset types, industries, or regions to reduce risk. Module 3

Dividend

A portion of a company's profits paid to shareholders, usually on a regular schedule. Module 3

Documentation

Written records or evidence that prove something occurred or verify information.

Documentation Fees

Charges for processing paperwork related to loans or large purchases. Module 2

Dollar Cost Averaging

An investment strategy where you invest a fixed amount of money at regular intervals regardless of market conditions. Module 3

Domain Registrations

Fees paid to reserve and maintain a website address. Module 1

Downgrade

To reduce the level, quality, or rating of something, such as moving to a less expensive service plan.

Downturn

A period when the economy or market experiences declining activity and values. Module 3

Durable Goods

Products designed to last for an extended period, such as appliances or furniture.

E

Early Withdrawal

Taking money out of a retirement account or time deposit before the designated time, often resulting in penalties. Module 3

Earned Income Tax Credit

A tax benefit for low to moderate income workers that can reduce taxes owed or provide a refund. Module 2

Earning Power

Your capacity to generate income based on your skills, education, and experience.

Education Credits

Tax benefits that help offset the costs of higher education expenses. Module 2

Emergency Fund

Money set aside specifically to cover unexpected expenses or income loss. Module 1

Emergency Room

A hospital department that provides immediate treatment for urgent medical conditions. Module 2

Employee

A person who works for a company or individual in exchange for wages or salary. Module 1

Employer

A person or organization that hires and pays workers. Module 1

Employer Match

Money your employer contributes to your retirement account based on your own contributions, essentially free money. Module 3

End-of-Life Care

Medical and support services provided to people in the final stages of terminal illness. Module 3

Entertainment

Activities for enjoyment, such as movies, concerts, or hobbies, typically a discretionary expense category. Module 1

Entry Point

The price or time at which you begin an investment. Module 3

Equifax

One of the three major credit bureaus that collects and maintains consumer credit information. Module 2

Equity

The ownership value in an asset after subtracting any debts, or ownership shares in a company. Module 3

Escrow Account

A separate account where money is held temporarily until certain conditions are met, commonly used in real estate transactions. Module 2

Estate

All of a person's assets and property, especially those left behind after death. Module 3

Estate Planning

The process of arranging how your assets will be managed and distributed after your death. Module 3

Excel Online

A web-based version of Microsoft's spreadsheet software accessible through a browser.

Excise Tax

A tax on specific goods like gasoline, tobacco, or alcohol. Module 2

Exclusions

Services, conditions, or situations that an insurance policy does not cover. Module 2

Executive Roles

High-level management positions with significant decision-making authority in an organization.

Executor

A person named in a will to manage the estate and carry out the deceased's wishes. Module 3

Exempt

Excluded from a requirement or obligation, such as being exempt from paying certain taxes. Module 2

Expenses

Money spent on goods, services, or obligations. Module 1

Experian

One of the three major credit bureaus that collects and maintains consumer credit information. Module 2

Exponential Growth

Growth that accelerates over time, such as compound interest increasing wealth faster as the balance grows. Module 3

Extended Fraud Alert

A credit report alert that lasts seven years and requires additional identity verification before credit can be extended. Module 2

Extension

Additional time granted to complete a task, such as filing taxes past the normal deadline. Module 2

F

Fair Credit Reporting Act

A federal law that regulates how credit bureaus collect and share consumer credit information. Module 2

Fair Debt Collection Practices Act (FDCPA)

A federal law that prohibits abusive, deceptive, and unfair debt collection practices. Module 2

Fair Isaac Corporation

The company that created the FICO credit scoring model. Module 2

Fair Labor Standards Act (FLSA)

A federal law that establishes minimum wage, overtime pay, and child labor standards. Module 2

Fair Wages

Compensation that is reasonable and equitable for the work performed. Module 2

FDIC (Federal Deposit Insurance Corporation)

A U.S. government agency that insures bank deposits up to $250,000 per depositor, per bank. Module 1

Federal Income Tax

Tax collected by the U.S. government on your earnings. Module 2

Federal Minimum Wage

The lowest hourly wage employers can legally pay workers under federal law. Module 2

Federal Trade Commission (FTC)

A government agency that protects consumers from unfair or deceptive business practices. Module 2

Fees

Charges for services or penalties for certain actions. Module 1

FICA (Federal Insurance Contributions Act)

Payroll taxes that fund Social Security and Medicare, automatically deducted from paychecks. Module 2

FICO Score

A credit score ranging from 300 to 850 created by the Fair Isaac Corporation that lenders use to assess credit risk. Module 2

File

To submit official documents, such as tax returns, to the appropriate authority. Module 2

Filing Taxes

The process of submitting your annual tax return to the IRS. Module 2

Finance

To borrow money to purchase something, such as a car, and repay it over time with interest.

Financial Freedom

The state of having enough savings, investments, and income to afford the lifestyle you want without financial stress. Module 3

Financial Hardware

The basic tools and accounts of personal finance, such as bank accounts and credit cards. Module 1

Financial Institution

An organization that manages money, including banks, credit unions, and investment firms. Module 1

Financial Passport

A metaphor for your credit score and history, which gives you access to financial opportunities. Module 2

Financial Power of Attorney

A legal document authorizing someone to make financial decisions on your behalf. Module 3

Financial Reputation

How lenders and creditors view your reliability based on your credit history and score. Module 2

Financial Reserves

Money set aside for emergencies or future needs. Module 1

Financial Survival

The mode of barely meeting basic financial obligations without building wealth or security.

Financial System

The network of institutions, markets, and regulations that manages money flow in an economy.

Fine Print

Small, detailed text in contracts that contains important terms and conditions often overlooked. Module 2

Fixed Expenses

Regular costs that stay the same each month, like rent or car payments. Module 1

Fixed Incomes

Earnings that don't change over time, such as pension payments or Social Security.

Flood Insurance

Coverage for damage caused by flooding, typically not included in standard homeowners insurance. Module 2

For-Profit

A business or organization operated to make money for its owners.

Foreclose

When a lender seizes property because the borrower failed to make mortgage payments. Module 2

Fraud

Intentional deception for financial gain or to cause loss to another person. Module 2

Fraud Alert

A notice on your credit report that warns lenders to take extra steps to verify your identity before extending credit. Module 2

Fraud Protection

Services and measures that help prevent or recover from fraudulent activity. Module 2

Fraudulent Charges

Unauthorized transactions on your account made by someone else. Module 2

Free Money

Money you receive without having to pay it back, such as employer retirement matching or grants. Module 3

Free Trial

A promotional period where you can use a service without charge before deciding whether to subscribe. Module 1

Freelancer

A self-employed person who works for multiple clients on a project or contract basis. Module 2

Freeze Your Credit

To restrict access to your credit report to prevent identity theft and unauthorized account opening. Module 2

Frequency

How often something occurs, such as payment frequency or billing frequency.

G

Gain

An increase in value or profit from an investment. Module 3

Garnish Wages

A legal process where money is withheld from your paycheck to pay debts or obligations. Module 2

Gas

Fuel for vehicles, a common variable expense in most budgets. Module 1

Generic Prescription

A medication that contains the same active ingredients as a brand-name drug but costs less. Module 2

Good Debt

Borrowed money used to purchase assets that increase in value or generate income, such as student loans or mortgages. Module 2

Good Standing

A status indicating you're meeting all the requirements and obligations of an account or agreement. Module 2

Google Sheets

A free, web-based spreadsheet application.

Grievance

A formal complaint about workplace conditions or treatment. Module 2

Groceries

Food and household items purchased for home use. Module 1

Gross Income

Total earnings before any deductions or taxes are taken out. Module 1

Growth Engine

The wealth-building components of personal finance, including investing and legacy planning. Module 3

Guaranteed Return

An investment that promises a specific rate of return, typically lower risk but also lower reward. Module 3

Guardian

A person legally appointed to care for a minor or incapacitated adult and manage their affairs. Module 3

Gym Membership

A recurring fee for access to fitness facilities and services. Module 1

H

Hacking

Unauthorized access to computer systems or accounts to steal information or money. Module 2

Hard Inquiry

A credit check that occurs when you apply for credit, which can temporarily lower your credit score. Module 2

Hardship Withdrawal

Early withdrawal from a retirement account due to immediate financial need, often with penalties. Module 3

Harassment

Aggressive or intimidating behavior, including by debt collectors, which may be illegal. Module 2

Hazards

Conditions or situations that increase the risk of loss or damage. Module 2

Health Insurance

Coverage that pays for medical expenses, including doctor visits, hospital stays, and prescriptions. Module 2

Health Insurance Marketplace

A platform where individuals can shop for and purchase health insurance plans. Module 2

Health Savings Account

A tax-advantaged account for people with high-deductible health plans to save for medical expenses. Module 2

Healthcare Proxy

A legal document designating someone to make medical decisions on your behalf if you're unable to. Module 3

Heirs

People legally entitled to inherit someone's property or assets. Module 3

High-Interest Loans

Loans with very high APRs that make them expensive and difficult to repay. Module 2

Holds

Temporary freezes on funds in your account, often placed when you make a large purchase or deposit a check. Module 1

Home Equity Loan

A loan that uses the equity in your home as collateral. Module 2

Homeowners Insurance

Coverage that protects your home and belongings from damage, theft, and liability. Module 2

Homeownership

Owning your residence rather than renting. Module 3

Hospital Bill

Charges for medical services received at a hospital. Module 2

Hourly Worker

An employee paid based on the number of hours worked rather than a fixed salary. Module 1

Hours

The amount of time worked, used to calculate pay for hourly employees. Module 1

I

Identity Theft

When someone steals your personal information to open accounts, make purchases, or commit fraud in your name. Module 2

Impulsively

Acting on sudden urges without thinking through consequences, particularly regarding spending.

In-Network

Healthcare providers or ATMs that have agreements with your insurance company or bank, typically offering lower costs. Module 2

Incapacitated

Unable to make decisions or care for yourself due to illness, injury, or disability. Module 3

Income

Money received from work, investments, or other sources. Module 1

Income Tax

Tax on the money you earn from work or investments. Module 2

Independent Contractor

A self-employed worker who provides services to clients without being an employee. Module 2

Index Funds

Investment funds that track a market index like the S&P 500, offering broad diversification at low cost. Module 3

Individual Stocks

Shares of ownership in a single company. Module 3

Inflation

The gradual increase in prices over time, which reduces purchasing power. Module 3

Inherit

To receive money, property, or assets from someone who has died. Module 3

Initial Fraud Alert

A credit report alert lasting 90 days that requires lenders to verify your identity before extending credit. Module 2

Initial Investment

The first amount of money you put into an investment. Module 3

Insurance

Protection against financial loss from unexpected events in exchange for regular premium payments. Module 2

Insurance Company

A business that provides insurance coverage in exchange for premium payments. Module 2

Insurance Products

Various types of insurance coverage offered to protect against different risks. Module 2

Interest

The cost of borrowing money or the earnings from lending or saving money. Module 2

Interest on Interest

The compounding effect where you earn interest on previously earned interest. Module 3

Interest-Free Loan

Borrowed money that doesn't charge interest, often for a limited promotional period. Module 2

Intestate Succession Laws

State laws that determine how assets are distributed when someone dies without a will. Module 3

Investment

Money put into assets with the expectation of earning a return over time. Module 3

Investment Component

A portion of certain life insurance policies that builds cash value. Module 3

IRA (Individual Retirement Account)

A personal retirement savings account with tax advantages. Module 3

IRS (Internal Revenue Service)

The federal agency responsible for collecting taxes and enforcing tax laws. Module 2

Issuer

The financial institution that provides a credit card or loan. Module 2

Itemized Deductions

Specific eligible expenses you can deduct from income instead of taking the standard deduction. Module 2

J

Jargon

Specialized or technical language that may be confusing to those unfamiliar with a field.

L

Landlord

A person or company that owns property and rents it to tenants. Module 2

Late Fee

A charge imposed when a payment is received after the due date. Module 1

Lawsuit

A legal dispute taken to court where one party sues another. Module 2

Lease

A contract allowing you to use property or a vehicle for a specified time in exchange for regular payments. Module 2

Legacy Planning

Arranging how your assets will be distributed and ensuring your wishes are carried out after death. Module 3

Legal Document

An official paper with legal significance, such as a contract, will, or court order. Module 2

Legal Fees

Costs associated with legal services, such as hiring an attorney. Module 2

Legal Protections

Rights and safeguards provided by law to prevent unfair treatment. Module 2

Legal Responsibility

An obligation or duty that is enforceable by law. Module 2

Legitimate Claim

A valid request for insurance benefits or legal remedy supported by evidence. Module 2

Lender

A person or institution that loans money to borrowers. Module 2

Length of Credit History

How long you've had credit accounts, which affects your credit score. Module 2

Level

A tier or category within a system, such as coverage levels or income levels.

Liability

Legal responsibility for something, or insurance coverage that protects you if you're responsible for damage or injury. Module 2

Liability Limits

The maximum amount an insurance policy will pay for covered claims. Module 2

Life Insurance

Insurance that pays a benefit to designated beneficiaries when the insured person dies. Module 3

Line Item

An individual entry in a budget or financial statement. Module 1

Liquid

Easily converted to cash without significant loss of value. Module 3

Liquidity

How quickly and easily an asset can be turned into cash. Module 3

Living Beyond Your Means

Spending more money than you earn. Module 1

Living Paycheck to Paycheck

A situation where all income is used to cover immediate expenses with nothing left to save. Module 1

Living Will

A legal document stating your wishes for medical treatment if you become unable to communicate. Module 3

Loan

Money borrowed that must be repaid with interest according to agreed terms. Module 2

Loan Payments

Regular amounts paid to reduce a loan balance. Module 2

Loan Rates

The interest rate charged on borrowed money. Module 2

Local Income Taxes

Taxes on earnings collected by city or county governments. Module 2

Login Credentials

Your username and password used to access accounts. Module 2

Long Game

A strategy focused on long-term success rather than short-term gains. Module 3

Lump Sum

A single large payment made all at once rather than in installments. Module 3

M

Maintenance Fees

Regular charges for keeping an account open or maintaining a service. Module 1

Manageable Expense

A cost that fits reasonably within your budget. Module 1

Market

The system where buyers and sellers trade investments, or the general state of economic conditions. Module 3

Market Crash

A sudden, significant decline in investment values. Module 3

Market Recovery

A period when investment values rebound after a decline. Module 3

Matching Contribution

Money your employer adds to your retirement account based on your contributions. Module 3

Maturity

The date when a financial product like a bond or CD reaches its end and principal is returned. Module 3

Medicaid

A government program providing health coverage to low-income individuals and families. Module 2

Medical Debt

Money owed for healthcare services. Module 2

Medical Expenses

Costs for healthcare services, treatments, and medications. Module 2

Medical Power of Attorney

A legal document authorizing someone to make healthcare decisions on your behalf if you're unable to. Module 3

Medicare

Federal health insurance program primarily for people age 65 and older. Module 2

Mediation

A process where a neutral third party helps disputing parties reach an agreement. Module 2

Mediator

A neutral person who facilitates resolution between parties in a dispute. Module 2

Member-Owned

A structure where users own the institution, as with credit unions. Module 1

Membership

Belonging to an organization, often requiring fees or dues. Module 1

Mills

Units used to calculate property tax, where one mill equals one-tenth of one percent. Module 2

Minimum Balance

The lowest amount you must keep in an account to avoid fees or earn interest. Module 1

Minimum Payment

The smallest amount you can pay on a credit card bill to keep the account in good standing. Module 2

Minimum Wage

The lowest hourly pay rate employers can legally pay workers. Module 2

Minor Children

Individuals under age 18 who are legally dependent on parents or guardians. Module 3

Mobile App

Software designed to run on smartphones and tablets.

Money Market Accounts

Savings accounts that typically offer higher interest rates in exchange for higher minimum balances. Module 1

Money on the Table

Opportunities for financial benefit that you're missing, such as unclaimed employer matching. Module 3

Monthly Fees

Charges that occur every month for services or account maintenance. Module 1

Mortgage

A loan used to purchase real estate, where the property serves as collateral. Module 2

Mortgage Interest

The cost of borrowing money to buy a home, which may be tax-deductible. Module 2

Multiplier

A factor that increases an amount, such as employer matching multiplying your retirement contributions. Module 3

Mutual Funds

Investment vehicles that pool money from many investors to buy a diversified portfolio of stocks, bonds, or other assets. Module 3

N

NCUA (National Credit Union Administration)

A federal agency that insures deposits in credit unions up to $250,000 per depositor. Module 1

Needs

Essential expenses required for survival and basic functioning, such as food, shelter, and healthcare. Module 1

Negotiate

To discuss terms with the goal of reaching a mutually acceptable agreement. Module 2

Nest Egg

Money saved for a specific purpose, especially retirement. Module 3

Net Income

The amount of money remaining after all taxes and deductions are subtracted from gross income. Module 1

Net Worth

The total value of everything you own minus everything you owe. Module 3

New Credit

Recently opened accounts, which factor into your credit score. Module 2

Nonprofit

An organization operated for purposes other than making profit, where any surplus is reinvested in the mission.

O

Obamacare

Common name for the Affordable Care Act, which expanded health insurance coverage. Module 2

Off the Clock

Time when you're not working and therefore not being paid. Module 2

Opportunity Cost

The value of what you give up when choosing one option over another.

Origination Fees

Upfront charges for processing a new loan. Module 2

OSHA (Occupational Safety and Health Administration)

A federal agency that ensures safe and healthy working conditions. Module 2

Out-of-Network

Healthcare providers or ATMs not affiliated with your insurance or bank, typically resulting in higher costs. Module 2

Out-of-Pocket Maximum

The most you'll pay for covered healthcare services in a year before insurance covers 100%. Module 2

Outrageous Interest Rates

Extremely high APRs that make debt very expensive to repay. Module 2

Overcharged

Billed more than the correct amount for a service or product. Module 2

Overdraft

When you spend more money than you have in your account, often resulting in fees. Module 1

Overtime

Hours worked beyond the standard workweek, typically paid at a higher rate. Module 2

Ownership

Having legal rights to an asset or property.

P

Paper Check

A physical check written and mailed rather than processed electronically. Module 1

Paper Statement Fees

Charges some institutions impose for mailing printed account statements. Module 1

Parties

The people or entities involved in a legal agreement or dispute. Module 2

Passwords

Secret combinations of characters used to access accounts and verify identity. Module 2

Pay Stub

A document showing your earnings, deductions, and net pay for a pay period. Module 1

Pay Yourself First

A saving strategy where you set aside money for savings before paying other expenses. Module 1

Paycheck

Payment received for work performed, typically issued weekly, biweekly, or monthly. Module 1

Payday Loans

Short-term, high-interest loans based on your upcoming paycheck, often with predatory terms. Module 2

Payment History

A record of whether you've paid bills on time, the most important factor in your credit score. Module 2

Payment Schedule

A timeline showing when loan or credit card payments are due. Module 2

Payout

Money received from an insurance claim, investment, or other source. Module 2

Peace of Mind

A sense of security and freedom from worry, especially regarding finances.

Penalties

Charges or punishments for violating terms, such as early withdrawal penalties. Module 2

Pending Transactions

Purchases or deposits that have been initiated but not yet completed or cleared. Module 1

Permanent Life

Life insurance that provides coverage for your entire life and includes a cash value component. Module 3

Personal Belongings

Items you own for personal use.

Personal Loans

Unsecured loans that can be used for various purposes. Module 2

Personal Property

Items you own, as opposed to real estate.

Phishing

Fraudulent attempts to obtain sensitive information by pretending to be a trustworthy entity. Module 2

Physical Branches

Actual bank or credit union locations you can visit in person. Module 1

PIN (Personal Identification Number)

A secret numeric code used to access accounts at ATMs or verify identity. Module 1

Plaintiff

The party who initiates a lawsuit against another. Module 2

Pledge

A commitment or promise, such as promising to donate money.

Point-of-Sale Terminal

A device where you swipe or insert your payment card to make purchases. Module 1

Police Report

An official document filed with law enforcement describing an incident like theft or fraud. Module 2

Policy

An insurance contract or an organization's set of rules and procedures. Module 2

Portfolio

The collection of all your investments. Module 3

Power of Attorney

A legal document giving someone authority to act on your behalf in financial or medical matters. Module 3

Pre-Tax Money

Income before taxes are deducted, or contributions made before taxes are calculated. Module 2

Predictable Revenue

Income that arrives regularly and can be reliably anticipated.

Predatory Lenders

Financial institutions that use unfair, deceptive, or abusive loan terms to take advantage of borrowers. Module 2

Premium

The amount you pay for insurance coverage, typically monthly or annually. Module 2

Prescription

Medication that requires a doctor's authorization to obtain. Module 2

Preservation of Value

Maintaining the purchasing power of money over time despite inflation. Module 3

Principal

The original amount of money borrowed, invested, or owed, not including interest. Module 2

Prioritize Debt

To rank debts and pay them off in a strategic order. Module 2

Proactive

Taking action in advance to prevent problems or take advantage of opportunities.

Probate

The legal process of validating a will and distributing assets after someone dies. Module 3

Processing Fees

Charges for handling transactions or applications. Module 1

Professional Roles

Jobs requiring specialized education, training, or credentials.

Profit

Money earned after subtracting all expenses from revenue. Module 3

Progressive Tax

A tax system where higher earners pay a larger percentage of their income. Module 2

Property Damage Liability

Car insurance coverage that pays for damage you cause to others' property in an accident. Module 2

Property Dispute

A disagreement over ownership, boundaries, or use of real estate. Module 2

Property Tax

Tax based on the value of real estate or personal property you own. Module 2

Protection

Coverage or measures that guard against financial loss. Module 2

Protective Equipment

Safety gear required in certain workplaces to prevent injury. Module 2

Psychology of Credit Cards

The mental and emotional factors that lead people to spend more when using credit versus cash. Module 2

Purchase Price

The total amount paid to buy something.

Q

Quarterly Payments

Payments made four times per year, every three months.

R

Rates

The cost of borrowing or the return on savings or investments, expressed as a percentage.

Reactive

Responding to situations after they occur rather than planning ahead.

Real Estate

Land and any buildings or structures on it. Module 3

Real Wealth

Sustainable financial security and assets that support long-term wellbeing, not just income. Module 3

Rebalancing

Adjusting your investment portfolio back to your target allocation by buying or selling assets. Module 3

Reassessed

When property value is re-evaluated for tax purposes. Module 2

Recall

When a company asks consumers to return a defective product. Module 2

Receipt

Proof of purchase showing what you bought and how much you paid. Module 1

Record Keeping

The practice of maintaining organized financial documents and statements. Module 1

Red Flag

A warning sign that something may be wrong or risky.

Redress

A remedy or compensation for a wrong or grievance. Module 2

Refinance

To replace an existing loan with a new one, typically to get better terms or lower rates. Module 2

Refund

Money returned to you, such as when you overpay taxes or return a purchase. Module 2

Refundable Credits

Tax credits that can result in a refund even if you owe no taxes. Module 2

Regressive Tax

A tax system where lower earners pay a larger percentage of their income than higher earners. Module 2

Regulatory Agency

A government organization that enforces rules and standards in specific industries. Module 2

Reinvest

To use earnings from an investment to purchase more of the same investment. Module 3

Remedy

A solution or compensation for a problem or wrong. Module 2

Rent

Payment made to use someone else's property, typically housing. Module 1

Rent-to-Own

An agreement where rental payments eventually lead to ownership, often with unfavorable terms. Module 2

Rental Income

Money earned from renting out property you own. Module 3

Renters Insurance

Coverage that protects your personal belongings and provides liability coverage for renters. Module 2

Repair Credit

To improve your credit score through responsible financial behavior. Module 2

Repossess

To take back property when loan payments aren't made. Module 2

Reserves

Money set aside for future use or emergencies. Module 1

Resuscitated

Medically revived after the heart has stopped, relevant to end-of-life medical decisions. Module 3

Retaliation

Punishment or adverse action taken against someone for exercising their rights. Module 2

Retirement

The phase of life when you stop working full-time and rely on savings and benefits for income. Module 3

Retirement Accounts

Tax-advantaged accounts designed to help you save for retirement. Module 3

Retirement Age

The age at which you can begin receiving full retirement benefits. Module 3

Retirement Contributions

Money you put into retirement accounts. Module 3

Return

The profit or loss on an investment over time. Module 3

Return on Investment

The gain or loss from an investment relative to the amount invested. Module 3

Revenue

Income generated from business activities or investments. Module 3

Revocable Living Trust

A legal arrangement where assets are managed by a trustee for beneficiaries, which can be changed during your lifetime. Module 3

Revolving Debt

Credit that replenishes as you pay it off, such as credit cards. Module 2

Rewards

Benefits earned from credit cards or other programs, such as cash back or points. Module 2

Right of Rescission

Your legal right to cancel certain types of contracts within a specific timeframe. Module 2

Rights at Work

Legal protections employees have regarding wages, safety, and fair treatment. Module 2

Risk

The possibility of losing money or not achieving expected returns on an investment. Module 3

Risk Management

The process of identifying, assessing, and minimizing financial risks. Module 3

Risk Tolerance

Your ability and willingness to withstand losses in your investments. Module 3

Roth 401(k)

A retirement account where contributions are made with after-tax money, but qualified withdrawals are tax-free. Module 3

Roth IRA

A retirement account where contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free. Module 3

Rule of Thumb

A general guideline or principle that's easy to remember and apply.

S

S&P 500

A stock market index tracking 500 large U.S. companies, often used as a benchmark for the overall market. Module 3

Safety Net

Financial resources or programs that protect you during hardship.

Safety Regulations

Rules designed to protect workers from injury or illness. Module 2

Safety Standards

Requirements for safe working conditions and practices. Module 2

Salaried Employees

Workers who receive a fixed amount of pay regardless of hours worked. Module 1

Sales Tax

A tax on purchases added to the price of goods and services. Module 2

Savings

Money set aside for future use rather than spent immediately. Module 1

Savings Accounts

Bank accounts designed to hold money you're not spending, typically earning interest. Module 1

Scam

A fraudulent scheme designed to trick you out of money or information. Module 2

Schedule

A plan for when activities will occur, or a form attached to tax returns for additional information.

Scoring Model

The formula used to calculate your credit score based on credit history factors. Module 2

Secured Credit Card

A credit card that requires a cash deposit as collateral, used to build or rebuild credit. Module 2

Secured Loan

A loan backed by collateral that the lender can seize if you don't repay. Module 2

Security

Protection against threats, or an investment such as a stock or bond. Module 2

Security Deposit

Money paid upfront when renting property, held to cover potential damages. Module 1

Security Freeze

A restriction on your credit report that prevents new accounts from being opened without your permission. Module 2

Sector

A segment of the economy or market, such as technology or healthcare. Module 3

Severity

The degree or extent of seriousness of a situation or loss.

Share

A unit of ownership in a company or credit union. Module 3

Shareholders

People who own shares in a company. Module 3

Short-Term Goals

Financial objectives you plan to achieve within a few months to a few years.

Simple Interest

Interest calculated only on the principal amount, not on accumulated interest. Module 2

Sin Taxes

Taxes on products considered harmful or socially undesirable, like tobacco or alcohol. Module 2

Skimming

Stealing credit or debit card information using a device attached to card readers. Module 2

Small Claims Court

A legal venue for resolving disputes involving small amounts of money without lawyers. Module 2

SMART Goal

A goal that is Specific, Measurable, Achievable, Relevant, and Time-bound.

Snowball Method

A debt repayment strategy where you pay off the smallest debt first, then move to the next smallest. Module 2

Social Security

A federal program providing retirement, disability, and survivor benefits. Module 3

Social Security Number

A unique nine-digit number assigned to U.S. citizens and residents for tracking earnings and benefits. Module 2

Soft Inquiry

A credit check that doesn't affect your credit score, such as checking your own credit. Module 2

Specific Performance

A legal remedy requiring someone to fulfill their contractual obligations. Module 2

Spouse

A legally married partner.

Standard Deduction

A fixed amount that reduces taxable income, available to all taxpayers who don't itemize. Module 2

Standard of Living

The level of comfort, goods, and services available to a person or community.

Starting from Zero

Beginning to build credit when you have no credit history. Module 2

State and Local Taxes

Taxes collected by state and local governments in addition to federal taxes. Module 2

State Income Tax

Tax on earnings collected by state governments, which varies by state. Module 2

Statements

Documents showing account activity, balances, and transactions over a period. Module 1

Steady Income

Regular, reliable earnings that can be counted on. Module 1

Stepping Stones

Small, manageable steps that lead to larger goals, the metaphor behind this educational platform.

Stock Market

The system where shares of publicly traded companies are bought and sold. Module 3

Stocks

Shares representing ownership in a company. Module 3

Strike

When workers collectively refuse to work to protest conditions or negotiate better terms. Module 2

Student Loan Interest

The cost of borrowing money for education, which may be tax-deductible. Module 2

Student Loans

Money borrowed to pay for education that must be repaid with interest. Module 2

Subscription

A recurring payment for ongoing access to a service or product. Module 1

Subscription Creep

The gradual accumulation of multiple subscriptions that add up to significant monthly costs. Module 1

Successor

A person designated to take over responsibilities, such as managing a trust. Module 3

Successor Trustee

The person who takes over managing a trust when the original trustee can no longer serve. Module 3

Sue

To take legal action against someone in court. Module 2

Supplement

To add to something, such as supplementing retirement income with part-time work. Module 3

Surgery

A medical procedure involving cutting into the body to treat disease or injury. Module 2

Survival Mode

A financial state focused only on meeting immediate needs without ability to save or plan ahead.

T

Tangible

Physical and touchable, as opposed to intangible assets like stocks. Module 3

Target Allocation

Your ideal mix of different investments based on your goals and risk tolerance. Module 3

Target-Date Fund

An investment fund that automatically adjusts its asset mix as you approach a specific date, usually retirement. Module 3

Tax Avoidance

Using legal strategies to reduce the amount of taxes you owe. Module 2

Tax Bill

The total amount of taxes you owe after credits and deductions. Module 2

Tax Brackets

Income ranges taxed at different rates in a progressive tax system. Module 2

Tax Credits

Amounts that directly reduce the taxes you owe, dollar for dollar. Module 2

Tax Deduction

Expenses that can be subtracted from your income to reduce the amount that's taxable. Module 2

Tax Preparer

A professional who helps prepare and file tax returns. Module 2

Tax Professional

An expert in tax law who can provide advice and prepare tax returns. Module 2

Tax Rate

The percentage of income or value that must be paid in taxes. Module 2

Tax Return

The forms you file with the IRS reporting your income, deductions, and tax owed or refunded. Module 2

Tax Season

The period from January through April when most people prepare and file their tax returns. Module 2

Tax Software

Computer programs that guide you through preparing and filing tax returns. Module 2

Taxable Income

The portion of your income subject to taxes after deductions and exemptions. Module 2

Taxes

Mandatory payments to government to fund public services and programs. Module 2

Term Life

Life insurance that provides coverage for a specific period, such as 10, 20, or 30 years. Module 3

Terms and Conditions

The rules and requirements you agree to when using a service or product. Module 2

Theft

The act of stealing money or property. Module 2

Thrift

The practice of using money carefully and not wastefully.

Thriving

Doing well financially, beyond just surviving, with the ability to save and build wealth. Module 3

Time and a Half

Overtime pay rate of 1.5 times your regular hourly wage. Module 2

Time Deposits

Accounts like CDs where money must remain deposited for a set period to avoid penalties. Module 3

Timeline

A schedule showing when events or milestones will occur.

Timesheet

A record of hours worked, used to calculate pay. Module 1

Timing the Market

Attempting to buy investments when prices are low and sell when prices are high, which is difficult to do consistently. Module 3

Tipped Workers

Employees who receive a significant portion of their income from customer tips. Module 2

Title Loans

High-interest loans where your vehicle title serves as collateral. Module 2

Total Income

All money received from all sources before any deductions. Module 1

Track Expenses

To record and monitor where your money goes. Module 1

Track Income

To record and monitor money you earn from all sources. Module 1

Traders

People who frequently buy and sell investments, often for short-term gains. Module 3

Traditional IRA

A retirement account where contributions may be tax-deductible, but withdrawals in retirement are taxed. Module 3

Transaction

Any activity that affects your account balance, such as deposits, withdrawals, or purchases. Module 1

Transfer

To move money from one account to another. Module 1

TransUnion

One of the three major credit bureaus that collects and maintains consumer credit information. Module 2

Trust

A legal arrangement where assets are held and managed by one party for the benefit of another. Module 3

Trustee

A person or institution that manages assets held in a trust. Module 3

Truth in Lending Act (TILA)

A federal law requiring lenders to disclose credit terms and costs clearly. Module 2

TurboTax

Popular tax preparation software that guides users through filing tax returns. Module 2

Two-Factor Authentication

A security measure requiring two forms of verification to access an account. Module 2

U

U.S. Financial System

The network of institutions, markets, and regulations that manage money in the United States.

Unauthorized Transactions

Purchases or withdrawals made without your permission. Module 2

Under Budget

Spending less than you planned or allocated. Module 1

Unfair Business Practices

Deceptive or abusive actions by companies that harm consumers. Module 2

Unions

Organizations of workers formed to protect rights and negotiate with employers collectively. Module 2

Unique Passwords

Different passwords for each account to improve security. Module 2

Universal Life

A type of permanent life insurance with flexible premiums and death benefits. Module 3

Unsecured Credit Card

A credit card that doesn't require a deposit, issued based on creditworthiness. Module 2

Unsecured Loan

A loan not backed by collateral, based solely on your promise to repay. Module 2

Utilities

Essential services like electricity, water, gas, and internet. Module 1

V

Valid Claim

A legitimate insurance claim or legal complaint supported by evidence. Module 2

Vandalism

Intentional damage to property. Module 2

Variable Expenses

Costs that change from month to month, like groceries or entertainment. Module 1

Verify

To confirm that information is accurate or authentic.

Violations

Actions that break laws, regulations, or rules. Module 2

W

W-2 Form

A tax document from your employer showing your annual earnings and taxes withheld. Module 2

W-4 Form

A form you complete for your employer to determine how much tax to withhold from your paycheck. Module 2

Wage Theft

When employers illegally withhold wages or fail to pay workers what they're owed. Module 2

Wages

Payment for work, typically calculated hourly. Module 1

Wall Street

A street in New York City that represents the U.S. financial industry and stock market. Module 3

Wants

Discretionary purchases that aren't essential for survival but improve quality of life. Module 1

Wealth

Accumulated financial resources and assets that provide long-term security and opportunities. Module 3

Wealth Building

The process of accumulating assets and financial resources over time. Module 3

Wealth Mindset

A way of thinking focused on long-term financial growth rather than just meeting immediate needs. Module 3

Whole Life

Permanent life insurance providing coverage for your entire life with a cash value component. Module 3

Will

A legal document specifying how you want your assets distributed after your death. Module 3

Wire Transfer Fees

Charges for electronically sending money between banks. Module 1

Withdraw

To take money out of an account. Module 1

Withdrawal

The act of removing money from an account, or a transaction where money is taken out. Module 1

Withholding Tax

Money your employer takes from your paycheck and sends to the government on your behalf. Module 2

Workplace Safety

Conditions and practices that protect employees from injury or illness on the job. Module 2

Workweek

The standard number of hours or days worked in a week, typically 40 hours. Module 2

Y

Yield

The income return on an investment, expressed as a percentage. Module 3

Z

Zero-Based Budgeting

A budgeting method where you assign every dollar of income a specific purpose, so income minus expenses equals zero. Module 1