Glossary.
The words that come up, in plain English. In lessons, a dotted underline means you can tap or hover for the definition.
- AGI
Adjusted gross income. Your total income minus certain adjustments. It's on your tax return.
- APR
Annual percentage rate. The yearly cost of borrowing, shown as a percent of what you owe.
- copayment
A fixed amount you pay for a covered service, like $25 for a doctor visit, usually after you've met your deductible.
- credit bureau
A company that collects credit information and sells credit reports. The three nationwide ones are Equifax, Experian and TransUnion.
- credit freeze
A block on your credit reports so nobody, including you, can open new credit in your name until you lift it.
- credit report
A record of your loans, cards and payment history, kept by credit bureaus like Equifax, Experian and TransUnion.
- credit score
A number that predicts how likely you are to pay back a loan on time, based on your credit reports.
- debt collector
A company or person that collects debts owed to someone else.
- deductible
The amount you pay for covered care or repairs before your insurance starts to pay.
- expense ratio
The yearly fee a fund charges, shown as a percent of what you have invested in it.
- flapper
The rubber seal at the bottom of a toilet tank. When it wears out, water leaks into the bowl and the toilet runs.
- grace period
The time between the end of a card's billing cycle and the payment due date. Pay the full balance by then and you usually owe no interest on purchases.
- gross pay
What you earned before anything is taken out.
- ground
Bare, unpainted metal on the car's engine or frame, used as the last connection when jump-starting.
- index fund
A fund that tries to match a market index, like the S&P 500, instead of trying to beat it.
- lease
The contract between you and a landlord. It sets the rent, the rules and how either side can end it.
- lug nut
The nuts that hold a wheel on the car.
- minimum payment
The smallest payment the lender accepts that month. Paying only this keeps you current but can cost a lot in interest.
- net pay
What's left after taxes and deductions. The same thing as take-home pay.
- out-of-pocket maximum
The most you'll pay for covered health care in a plan year. After you reach it, the plan pays 100% of covered services.
- overdraft
When the bank pays a transaction even though you don't have enough money in the account, usually for a fee.
- payday loan
A short-term, high-cost loan, usually for a small amount, that's due on your next payday.
- recall
A notice that a vehicle or part has a safety defect the manufacturer must fix.
- security deposit
Money you pay up front that the landlord holds. It's meant to come back to you, minus any charges your lease and state law allow.
- take-home pay
What reaches your bank account after taxes and deductions. Budget with this number.
- VIN
Vehicle identification number. A 17-character code unique to your car.
- W-4
The form that tells your employer how much federal income tax to hold back from each paycheck.
- withholding
Tax your employer takes out of each paycheck and sends to the government for you.