Money parents give kids to help them learn about making smart financial choices. An allowance is usually given weekly. And it's sometimes based on completing responsibilities — household chores or jobs for the family.
The letters stand for Automated Teller Machine. This is an electronic banking station that lets people do certain banking business 24 hours a day, 7 days a week. You can deposit and withdraw money, pay loans and transfer money from one account to another at many ATMs.
1. To make sure the monthly amount of money going into your account matches the monthly amount of money going out of your account.
2. The total amount of money that you have in your bank account.
A business that keeps money for customers, makes loans and provides other money-related services.
A plan that balances money coming in (income) with money going out (expenses).
Certificate of Deposit (CD)
A type of account that requires you to invest money for a certain length of time and guarantees the same rate of return (interest) for that entire time. CDs usually require a minimum deposit.
Check Card (also called a Bank Card)
A plastic card that looks like a credit card but is used to withdraw money from a checking account. When you use the card at ATMs or in stores to make purchases, money is immediately subtracted from your account. You cannot withdraw more money than you have in the account.
Interest that you earn not only on the money you first deposited into an interest-bearing account, like a CD or savings account, but also on any interest that account has already earned.
Money that you owe.
To put in (or add) money to your bank account.
The Federal Deposit Insurance Corporation (FDIC) protects bank customers from possible money losses by providing insurance for different kinds of savings accounts up to $250,000 per account.
Something you work toward or hope to achieve in the future.
1. The money a bank pays depositors for using their money.
2. The money a borrower pays the bank for using its money.
Purchasing something of value, like stocks, mutual funds or real estate, that you hope will grow even more value and earn you more money over time.
Rule of 72
A math formula that calculates the number of years needed to double your money at a particular interest rate. Put this rule into action: divide 72 by the interest rate. So, money deposited at a 10% interest rate will double in 7.2 years.
To take money out of an account.