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  • 4
    401(k)
    A retirement account offered by your employer
  • A
    actual cash value
    Your insurance company pays what your belongings are actually worth (instead of the replacement cost)
    APR
    (Annual percentage rate) Includes all fees charged by your lender, allowing you to fairly compare different offers
    ARM
    (Adjustable rate mortgage) Payments adjust based on current interest rates (A 5/1 ARM means that your rate is fixed for 5 years and then adjusts every 1 year.)
  • B
    balanced fund
    Mutual fund that includes a mix of stocks and bonds
    basic rule of money
    When you use someone else's money, you have to pay for it
    bill of lading
    The receipt and contract for all of the stuff you're moving
    bodily injury liability
    Insurance that pays for injuries you cause to someone else
    bonds
    IOUs issued by companies or governments
    bouillabaisse
    (bool-yuh-beys) Fish soup with vegetables
    buyer's agent
    The real estate agent who works for the buyer of a home
  • C
    capitalized cost
    The negotiated price for leasing a car
    carpaccio
    (kahr-pah-chee-oh) Raw beef appetizer
    caviar
    (kav-ee-ahr) Fish eggs
    CD
    (Certificate of deposit) Typically pays more than savings accounts, but your money is in prison for the term of the CD
    ceviche
    (suh-vee-chey) Raw fish
    checking account
    A needed service; should be used sparingly due to low (or no) interest
    closing costs
    All of the fees you pay when you sign the paperwork to buy your home
    co-payment
    A small fee you pay every time you visit a doctor
    COBRA
    The right to purchase the same insurance that your employer offers after you leave your job
    collar stiffener
    Inserted into your collar to keep it from curling up
    collision
    Insurance that pays for your car damage when you get in a wreck
    comprehensive
    Auto insurance that pays for damage that is not wreck-related (theft, hail)
    consolidation
    Combining student loans into one loan at a (potentially) lower rate
    credit agencies
    The big three (Equifax, Experian, or TransUnion); they monitor your ability to pay your debts
  • D
    debit card
    Similar to a checking account (Confirm with your bank what happens if you use it with zero balance.)
    declared value
    The amount that all of the stuff that you're moving/insuring is worth
    deductible
    What you pay out of your own pocket before your insurance kicks in
    deduction
    All of the tax breaks (besides a mouth to feed) that Uncle Sam gives away
    Democratic party
    Generally believes in progressive taxes (higher taxes for higher earners), more of a government role in citizens' lives, and liberal social issues (protecting the environment)
    dependent
    Refers to someone who depends on you for money, like a kid (This saves you money in taxes.)
    dm
    Doorman
    Dow Jones Industrial Average
    30 stocks used as an indication of how all stocks are performing
    down payment
    The money you pay out of your pocket when you buy a home
    dumpster diving
    Stealing personal information by going through the trash (form of identity theft)
    dw
    Dishwasher
  • E
    earnest money
    A good faith, cash deposit you place on a home when you're making an offer on it that says, "I, like, really want this house and stuff."
    eik
    Eat-in kitchen
    equity
    The financial value of "what's yours" in your home
    escargot
    (es-kar-goh) Cooked snails, usually served as an appetizer
    expense ratio
    The pay-as-you-go fee for owning a mutual fund
  • F
    f/p
    Fireplace
    FICA tax
    Social security tax (6.2%) plus medicare tax (1.45%)
    filet mignon
    (fi-ley min-yon) The most expensive, tender cut of steak
    fixed rate mortgage
    Monthly home payments that stay constant over time
    Flex account
    (Flexible spending account) A health spending account offered by employers that helps save employees money in health expenses
    foie gras
    (fwah grah) Rich, buttery, and delicate ... goose liver
    full replacement coverage
    Your insurance company pays the cost for buying a new item (if lost/destroyed)
  • G
    gnocchi
    (nok-ee) Potato dumplings
    grace period
    The amount of time you have, after graduation, before you have to start repaying your student loan (Interest may still accumulate.)
    graduated repayment
    A student loan with payments that start small and gradually increase
    growth funds
    Mutual funds comprised of companies that have large growth potential
  • H
    h/w
    Hardwood floors
    HSA
    (Health savings account) A health spending account available with high deductible insurance plans that saves money in health expenses
    HMO
    (Health maintenance organization) The least expensive, least flexible health insurance plan
  • I
    income funds
    Mutual funds comprised of established companies that aren't as risky (but have less upside potential)
    income-sensitive repayment
    A student loan with payments that are a percentage of your monthly income
    independent
    Not registering with a specific political party (often precludes you from voting in a primary)
    IRA
    (Individual retirement account) A retirement account set up by an individual
  • L
    latex paint
    The most common type of paint (water based, dries quickly, and easy on cleanup)
    liability protection
    Homeowner's insurance that reimburses you if someone sues you after getting injured on your property
    Libertarian party
    Favors few restrictions on businesses and strong civil liberties (freedom of speech, religion, etc.)
    listing agent
    The real estate agent who works for the seller of a home
    load
    The fee for buying or selling a mutual fund from a mutual fund company/family
  • M
    Maitre D'
    The welcoming person at fancy restaurants
    maki
    (mah-kee) Rolls made of raw fish or some other item (like cucumber) wrapped in rice or seaweed
    money factor
    The interest rate you pay on your car lease (also known as lease factor)
    money market funds
    Typically pay higher interest rates than savings accounts, but often come with higher minimum balances and prohibit small check writing
    mortgage
    The loan to buy your home
    mortgage insurance
    A fee paid when less than a 20% down payment is made (It protects your lender from losing money if you default and your home value depreciates.)
    mortgage payment
    Money paid on your home loan (Some goes towards interest while the remainder pays down your principal.)
    mutual fund
    A bunch of stocks, bonds, and other stuff packaged into a nice little bundle
  • N
    network doctors
    Phone book of doctors approved by your health insurance provider
    no-fault insurance
    Some states have laws that require your policy to pay for your medical bills no matter who's at fault (generally speaking)
  • O
    oil-based paint
    Goes on smooth and covers more thoroughly in one coat, but it's hard to clean up and it stinks
    out-of-pocket
    The money you pay (not your insurance company)
    out-of-pocket maximum
    The most money you'll have to pay in a calendar year for "reasonable" and "customary" care
  • P
    payoff amount
    The amount of money you pay to own a car at the end of a lease
    PCP
    Primary care physician or family doctor
    PIP
    (Personal injury protection) Auto insurance that pays for injuries to the driver and passengers of your car
    POS
    (Point of service) Health insurance plan that offers moderate flexibility at a moderate price
    PPO
    (Preferred provider organization) The most expensive, most flexible health insurance plan
    pre-approval
    When a bank tells you how much you can borrow to buy a home
    pre-existing condition
    Something that's wrong with you prior to getting health insurance
    premium
    Your monthly payment for insurance coverage
    primary
    An election within a political party (e.g., Democratic ticket for president)
    principal (mortgage)
    The amount of money currently borrowed in a loan
    property damage liability
    Auto insurance that pays for damages to someone else's car or mailbox
    property protection
    Homeowner's insurance that covers your house, garage, and the personal property in your home
    prospectus
    A lengthy, boring description of a mutual fund that you should read before buying
  • R
    red mullet
    (red muhl-it) Fish, not a bad haircut
    Republican party
    Generally believes in lower taxes, less government, and social conservative issues (stonger families)
    residual value
    The amount you can buy your car for at the end of the lease
    retirement accounts
    A "special box" for your money with special powers; makes your money grow tax-free until you're old
  • S
    sashimi
    (sa-shee-mee) Raw fish without the rice (think "the fish shee-mees off the rice")
    savings accounts
    Use sparingly due to traditionally low interest rates
    shoulder surfing
    Reading credit card information over your shoulder (type of identity theft)
    skimming
    Sale of credit card numbers from restaurant servers (type of identity theft)
    stocks
    Ownership of a company (risky investment)
    subsidized student loan
    The government has paid the interest while you were in school
    sushi
    (soo-shi) Raw fish or shellfish over rice
    swatch
    A card with selection of paint colors
  • T
    tartare
    (tahr-tahr) Raw meat or fish
    term
    Length of a mortgage
    term life
    Life insurance that makes a payment when you die (during a certain term of years)
  • U
    uninsured motorist
    Auto insurance that pays for your injuries when you get into an accident with an uninsured motorist
  • V
    venison
    (ven-uh-zuhn) Deer meat (think Bambi)
    visa
    A travel document that is needed to enter some countries
  • W
    W-2 form
    Your financial report card given to you by your employer for filing your taxes
    W-4 form
    That confusing tax form given to you on your first day on the job
    w/d
    Washer and dryer
    wasabi
    (wa-sab-ee) Very spicy horseradish that looks like Play-Doh
    wd/hkup
    Washer/dryer hookup
    whole life
    Term life insurance plus a savings account
    wic
    Walk-in closet