Financial Vocabulary

Boost your financial IQ! Master key terms like savings, credit cards, and expenses with this engaging vocabulary practice.

Types of Accounts There are three types of accounts, please match each account to its appropriate description. Savings Account A banking account where you can store money and earn interest on your money, also known as a basic deposit account. This account is medium liquidity. Checking Account A Banking account, which is a convent transactional account to deposit and withdraw money. This account is high liquidity. Certificate of Deposit Fixed interest rate for a specific amount of time (3 month - 5 years). This account is best for funds that can remain untouched for longer periods of time, and is a low liquidity account. What does "ATM" stand for? Cards Please match to its appropriate description. Debit Card Money spent using this card is withdrawn immediately from your checking account and given straight to the company you are paying. This card is linked to a checking account. Credit Card Allows you to pay a merchant for goods on credit, paying back the credit card company later with interest. Expenses Please match each to its appropriate description. Expenses The items you spend your money on Fixed Expenses Expenses that do not vary in amount and that you have to pay regularly. For example, rent, phone bill, etc. Flexible Expenses Expenses that vary in amount and are less predictable. For example, going out with friends, clothing, food, etc. Periodic Money Spent on a less frequent basis but are reoccurring throughout the year. For example, hair cuts, birthday gifts, holiday gifts. Financial Goal - Something that you would like to achieve financially. This can be a short term or long period of time, usually will be achieved by accomplishing small steps. Wants A wish or desire for something Needs Something necessary to survive What is a Credit Rating?