WOW 5

 Checking account: A banking service wherein money is deposited into an account and checks are written to withdraw money as needed Example: Used by your parents, business owner, or you to keep track of money.

 Credit: The privilege of borrowing something now, with the agreement to pay for it later Example: A Macy’s, VISA, Mastercard, American Express cards.

 Creditworthiness: Past and future ability to repay debts Example: If you want to buy a car you have to have a history of being able to repay the debt.

 Creditor: Any person to whom one owes money or goods Example: Person who has a loan for a car. (Or other item)

 Debit card: A plastic card that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers. Use of a debit card results in an immediate transfer of funds Example: VISA or Mastercard that is attached to your bank account.

 Debt: Money owed Example: If you have an agreement to repay; loan.

 Disposable income: The money you have to spend or save as you wish after taxes, social security, and other required and optional deductions have been withheld from your gross pay Example: Used to pay bills; house payment, car payment, etc.

 Discretionary income: Money that is left over when the bills have been paid Example: Money ear tagged to do things you may want; vacation, coffee, new phone, etc.

 Income: Money that comes in from property, business or work

 Investment: Outlay of money in the hope of realizing a profit Example: buying a house

 Saving: Setting aside income or money for future spending Example: bank savings account

 Stock: Ownership in a corporation; stock can be common or preferred Example: Apple Corporation