Wealth Equity Initiative

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1099Income

A tax form reporting money you earned as an independent worker rather than an employee. If you do gig or freelance work, you may get one, and no taxes were withheld for you.

A retirement savings account offered through a job. Money goes in straight from your paycheck before taxes, and many employers add a matching contribution, which is free money.

A simple budget guide: aim to spend about 50 percent of take-home pay on needs, 30 percent on wants, and 20 percent on saving and paying off debt. Adjust it to your life.

A savings account built for education costs, where the money can grow without being taxed if you spend it on school. Often opened by a parent for a child.

Account NumberBanking

The unique number that identifies your specific bank account. You share it (along with your routing number) to receive a direct deposit or set up a payment.

An electronic transfer of money between banks over the Automated Clearing House network. Direct deposit of a paycheck and most online bill payments move this way. It is usually free but can take a day or two.

Your total income for the year minus certain allowed subtractions, such as some retirement contributions. Often shortened to AGI, it is the starting figure many tax breaks and limits are based on.

The schedule that spreads a loan into equal payments over time. Early payments go mostly toward interest, and later ones go mostly toward the principal.

A yearly charge some credit cards add just for having the card. Many cards have no annual fee, so it is worth checking before you apply.

The yearly cost of borrowing, shown as a percentage. On a credit card, a higher APR means a balance you carry costs more. Pay in full and you usually owe no interest.

The real yearly rate you earn on savings once compounding is included. A higher APY means your money grows faster. Use it to compare savings accounts fairly.

Anything you own that has value, like cash, a savings account, a car, or investments. Assets are the building blocks of your net worth.

How you divide your investments among types like stocks, bonds, and cash. The mix shapes both your possible return and your risk, and people often shift it as their goals change.

An Automated Teller Machine, the cash machine where you withdraw or deposit money using your debit card. Using an ATM outside your bank's network can add a fee.

Someone added to another person's credit card account who can use the card but is not legally responsible for the bill. A young person added to a parent's account can sometimes build credit history this way.

Coverage that helps pay for car-related costs like crashes, theft, or damage you cause to others. Most states require at least a basic amount to drive legally.

Setting up a recurring transfer that moves money into savings on its own, often right after payday. Saving without having to remember makes it stick.

A setup that lets a company automatically pull a bill from your account on its due date so you do not have to pay it by hand each month. It helps avoid late fees, but you still need enough money in the account.

The amount in your account you can actually spend right now. It can be lower than your total balance when recent deposits have not cleared or pending charges are being held.

The document a college sends after you apply for aid, listing the grants, scholarships, loans, and work-study it offers. Comparing award letters shows what each school will really cost you.

Balance TransferCredit

Moving debt from one credit card to another, usually to get a lower interest rate for a while. There is often a fee of a few percent, and the low rate ends after a set period.

A company that holds your money, lets you spend and save it, and lends money to others. Money in a U.S. bank is protected up to a federal limit if the bank fails.

A legal process for people who cannot repay their debts. It can erase or restructure what you owe, but it seriously damages your credit for years.

A stretch when investment prices fall a lot, often 20 percent or more, and mood is gloomy. The opposite of a bull market.

The person you name to receive the payout from something like a life insurance policy or retirement account after you die.

Extras an employer offers beyond pay, such as health insurance, paid time off, or a retirement match. Benefits can be worth a lot, so weigh them with the salary.

The roughly one-month period between credit card statements during which your purchases are added up. At the end of the cycle the card sends a statement showing what you owe and when it is due.

A loan you make to a government or company. In return they pay you interest and give your money back on a set date. Bonds are usually steadier than stocks.

Extra pay on top of your regular wages, often as a reward or at year end. It is still taxed as income.

An account you use to buy and sell investments like stocks and funds. You can open one online, often with no minimum.

A plan for your money that compares what comes in against what goes out, so you can decide where each dollar goes before you spend it.

A stretch when investment prices are rising and confidence is high. The opposite of a bear market.

Capital GainInvesting

The profit you make when you sell an investment for more than you paid. If you sell for less, that is a capital loss. Gains can be taxed.

The loss you take when you sell an investment for less than you paid for it. It is the opposite of a capital gain, and at tax time it can sometimes offset gains.

Borrowing cash against your credit card, often at an ATM. It usually starts charging interest right away at a high rate with an extra fee, so it is an expensive option.

A type of credit card reward that returns a small percentage of what you spend, often 1 to 2 percent, as a credit or deposit. It only helps if you avoid interest by paying the balance in full.

The movement of money in and out over a period of time. Positive cash flow means more comes in than goes out; negative means you are spending more than you earn.

A check drawn on the bank's own funds after it takes the money from your account. Because the bank guarantees it, sellers often require one for large purchases like a car. There is usually a fee.

A savings product where you lock money away for a set time, like six months or a year, in exchange for a fixed interest rate. Taking it out early usually means a penalty.

When a lender decides a debt you stopped paying, usually after about six months, is unlikely to be collected and writes it off as a loss. You still owe the money, and a charge-off badly damages your credit.

A bank account built for everyday spending. You pay for things and get paid through it using a debit card, transfers, or checks. It usually earns little or no interest.

A request you file asking your insurance to pay for a covered loss, like a car repair after an accident. The insurer reviews it and pays what the policy allows.

The share of a covered medical cost you pay after meeting your deductible, given as a percentage. With 20 percent coinsurance the insurer pays 80 percent and you pay the rest, up to your out-of-pocket maximum.

Something of value you pledge to back a loan, like a car or house. If you do not repay, the lender can take it. Loans with collateral are called secured loans.

When a debt goes unpaid for a long time, the lender may sell it to a collection agency that tries to recover the money. Accounts in collections badly hurt your credit.

Pay based on how much you sell, often a percentage of each sale. Some jobs pay only commission; others mix it with a base wage.

When investment earnings are reinvested and then earn returns of their own, so the total can snowball over many years. Starting early gives it more time to work.

Interest that earns interest. You earn on your original money and on the interest already added, so savings grow faster over time. It is the engine behind long-term saving and investing.

A fixed amount you pay for a covered service, like 25 dollars for a doctor visit, while insurance covers the rest. Common in health plans.

Someone who signs a loan or credit application with you and promises to pay if you cannot. Lenders may require one when you have little credit history.

A school's full yearly price estimate: tuition, fees, housing, food, books, and other basics. Financial aid is measured against this number.

How much money it takes to cover basic needs like housing, food, and transportation in a given place. Costs vary widely by city, so the same salary can stretch much further in one area than another.

What your insurance policy will actually pay for and up to how much. Reading your coverage tells you what is protected and what is not.

The ability to borrow money or use goods now and pay for them later. Using credit well builds trust with lenders; using it poorly makes borrowing harder and costlier.

A company that collects information about how you borrow and repay, then sells it as a credit report. The three main ones are Equifax, Experian, and TransUnion.

A card that lets you borrow money up to a limit to pay for things, then repay later. Pay the full balance each month and you avoid interest; carry it and interest piles up.

A free tool that locks your credit reports so no one can open new accounts in your name until you unlock them. It is a common defense against identity theft and does not hurt your credit score.

The most a lender will let you borrow on a credit card or line of credit. Staying well below it helps your credit score.

A detailed record of your borrowing history: accounts, balances, and whether you pay on time. You can check yours for free, and you should, to catch errors.

A number, often from 300 to 850, that sums up how reliably you repay what you borrow. A higher score makes it easier and cheaper to get loans, housing, and cards.

A not-for-profit alternative to a bank that is owned by its members. Credit unions often offer lower fees and better rates, and your money is insured much like at a bank.

How much of your available credit you are using, as a percentage. Using a small share, often under 30 percent, helps your credit score.

An extra financial aid application some colleges require, in addition to the FAFSA, to award their own grants and scholarships. It asks for more detailed family financial information.

Debit CardBanking

A card linked to your checking account that spends money you already have. When you pay, the amount comes straight out of your balance, so you cannot borrow with it.

Money you owe to someone else, usually with interest. Not all debt is bad: it can help you afford big goals, but too much can be hard to escape.

A payoff strategy where you put extra money toward the debt with the highest interest rate first, then move to the next highest. It usually saves the most money in interest over time.

Combining several debts into one new loan, ideally with a lower interest rate, so you have a single payment to track. It simplifies, but only helps if the new rate is better.

A payoff strategy where you put extra money toward your smallest debt first while paying the minimum on the rest, then roll that payment to the next smallest. The early wins are meant to keep you motivated.

How much of your monthly income goes to debt payments, as a percentage. Lenders use it to judge whether you can take on more. Lower is better.

The amount you pay out of your own pocket before insurance starts to pay. A higher deductible usually means a lower monthly premium, and the reverse.

An amount you subtract from your income before tax is figured, which lowers the income you are taxed on. The more deductions, the smaller the taxable amount.

Failing to repay a debt as agreed for an extended time. Default leads to serious harm to your credit and can mean losing collateral or facing collections.

An approved pause on student loan payments, for example while you are still in school. On some loans, interest does not build during the pause.

Being behind on a payment. An account becomes delinquent the day after a missed due date and grows more serious the longer it stays unpaid.

A person, often a child or student, who relies on someone else for support and can be claimed on that person's tax return for certain benefits.

When a payer, like an employer, sends money straight into your bank account electronically instead of handing you a paper check. It is faster and there is nothing to cash.

When financial aid money is actually released, usually sent to the school to cover tuition and fees, with any leftover paid to the student. It often happens at the start of each term.

Money spent on wants rather than needs, like eating out, games, or concerts. It is the easiest part of a budget to cut when money is tight.

The money you have left from your pay after taxes are taken out. It is what is actually available to spend, save, or pay bills with.

Spreading money across many different investments so that one bad result does not sink everything. A simple way to lower risk without giving up much.

A share of a company's profit paid out to people who own its stock, usually as cash. Not every company pays one.

Investing a fixed amount on a regular schedule, like every paycheck, no matter the price. You buy more shares when prices are low and fewer when high, which smooths out the ups and downs over time.

Effective Tax RateTaxes

The average share of your income that actually goes to tax, found by dividing total tax by total income. It is usually lower than your top bracket because brackets only tax the income inside each range.

Money set aside for surprise costs like a car repair or a missed paycheck. A common goal is enough to cover three to six months of basic expenses, kept somewhere easy to reach.

Money your employer adds to your retirement account based on what you contribute, up to a limit, like 50 cents for every dollar you put in. It is added pay for saving, so many people try to contribute enough to get the full match.

Signing the back of a check before you deposit or cash it. Your signature, sometimes with a note like 'for deposit only', tells the bank you approve moving the money.

A budgeting method where you split your spending money into categories, traditionally paper envelopes of cash, and stop spending in a category once its envelope is empty. Many people now do this with separate accounts or app categories.

Tax payments made during the year by people whose income has no tax withheld, such as the self-employed. They are usually paid in four installments to avoid a big bill and penalties at filing time.

A basket of many investments bundled into one, which you can buy and sell like a single stock. ETFs make it easy to own a wide mix at low cost.

An older figure from the FAFSA that estimated how much a family could pay for college. For aid starting in the 2024 to 2025 year it was renamed the Student Aid Index.

The yearly fee a fund charges, shown as a percentage of the money you have in it. Lower is better because fees quietly eat into returns over time.

FAFSACollege & Aid

The Free Application for Federal Student Aid, the form that opens the door to federal grants, work-study, and loans. Filing it is the first step to most college aid.

The Federal Deposit Insurance Corporation, a government agency that protects the money you keep in a bank, generally up to 250,000 dollars per depositor, if the bank fails.

The payroll taxes taken from your paycheck for Social Security and Medicare. You see them as a line on your pay stub.

The most widely used type of credit score, created by a company called FICO. Lenders often check it when you apply to borrow.

A person or company legally required to act in your best interest, ahead of their own. The word is defined here as a neutral legal term.

The category you choose on a tax return, like single or married filing jointly. It affects your tax rates and deductions.

Money to help pay for college from the government, the school, or others. It can be aid you keep, like grants and scholarships, or aid you repay, like loans.

A cost that stays about the same every month, such as rent or a phone plan. Fixed expenses are predictable, which makes them easy to plan for.

An employer account that lets you set aside pre-tax money for health or dependent-care costs. Unlike a health savings account, you usually must spend the money within the plan year or lose part of it.

A lender's temporary agreement to pause or shrink your loan payments during hardship. Interest often keeps building, so the balance can grow, but it can keep missed payments from being reported as late.

GarnishmentDebt

A legal order that takes part of your paycheck or bank account to pay a debt you did not repay. It usually requires a court judgment first.

Earning money through short, flexible jobs or tasks, like delivery or rideshare, instead of a steady job. You are usually treated as self-employed and handle your own taxes.

A window of time when you can pay without owing interest or a penalty. On a credit card, paying the full balance within the grace period means no interest charge.

Money for school, usually based on financial need, that you do not pay back. Grants come from the government or the school.

Your total earnings before any taxes or deductions are taken out. It is the bigger number on your pay stub, larger than what you take home.

Hard InquiryCredit

A check of your credit report that happens when you apply to borrow. It can lower your score a little for a short time. Several in a row can add up.

Coverage that helps pay for medical care, from checkups to emergencies. You usually pay a monthly premium plus some costs when you get care.

A special savings account, paired with certain high-deductible health plans, for setting aside pre-tax money to pay medical costs. The money is yours to keep and rolls over year to year.

A savings account that pays a much higher interest rate than a regular one, often offered by online banks. A good home for an emergency fund.

Pay set by the hour, so your earnings depend on how many hours you work. Work more hours and you earn more; work fewer and you earn less.

IncomeIncome

Money you receive, most often from work, but also from things like interest, gifts, or benefits. It is the money coming in that a budget plans around.

A tax on the money you earn, paid to the federal government and often to your state. It is usually taken out of each paycheck before you get it.

A fund that simply tracks a market index, like the S&P 500, instead of trying to beat it. Index funds are popular for low fees and built-in diversification.

The gradual rise in prices over time, which means each dollar buys a little less than before. Saving and investing aim to help your money keep up.

A loan you repay in fixed, regular payments over a set time, like a car loan or student loan. You know the payment and the payoff date up front.

The cost of borrowing money or the reward for saving it. When you save, the bank pays you interest. When you borrow, you pay interest.

The price of borrowing or the reward for saving, shown as a yearly percentage. On a loan it sets how much extra you pay; on savings it sets how much you earn.

A temporary, often very low or zero, interest rate a card or loan offers for a set opening period. When the intro period ends, the rate rises to the standard APR, so it helps to know that date.

An Individual Retirement Account you open on your own to invest for the future with tax benefits. Anyone with earned income can have one, separate from a job.

The Internal Revenue Service, the federal agency that collects taxes and processes tax returns and refunds.

Listing out specific deductible expenses, like certain medical costs or donations, instead of taking the flat standard deduction. People choose whichever lowers their taxable income more.

Joint AccountBanking

A bank account shared by two or more people, where everyone can deposit and withdraw. Common between partners or a student and a parent.

Late FeeCredit

A charge added when you miss a payment due date. Beyond the fee, late payments can hurt your credit score, so setting reminders or autopay helps.

Money you owe, like a loan or credit card balance. Liabilities are the opposite of assets and are subtracted when figuring net worth.

The part of insurance that covers harm or damage you cause to other people or their property. Auto policies must include a minimum amount of it.

A lender's legal claim on something you own, like a car or house, as security for a debt. If you do not pay, the lien lets the lender take or force the sale of that property.

Coverage that pays money to people you choose if you die, helping them with costs or lost income. Younger, healthier people usually pay lower premiums.

How quickly you can turn something into cash without losing value. Money in a checking account is highly liquid; a house is not.

Money you borrow and agree to pay back over time, usually with interest. The agreement sets the amount, the rate, and the schedule.

A program that cancels part or all of a student loan after you meet certain conditions, such as years of qualifying public-service work.

The company that handles your loan after you get it, taking your payments and answering questions. You may never deal with the original lender, only the servicer.

Marginal Tax RateTaxes

The tax rate applied to your next dollar of income, set by the top bracket your income reaches. Because of how brackets work, it is higher than your effective tax rate.

A standard list of investments, like the S&P 500, used to measure how a slice of the market is doing. You cannot buy an index directly, but index funds aim to copy one.

The date a savings product or bond reaches the end of its set term and pays you back. A one-year certificate of deposit reaches maturity after one year, when you can withdraw it without a penalty.

Money for college awarded for achievements like grades, test scores, talent, or leadership, rather than for financial need. It does not have to be repaid.

The lowest amount some accounts require you to keep on hand. Drop below it and the bank may charge a monthly fee.

The smallest amount you must pay on a credit card each month to stay in good standing. Paying only the minimum keeps you in debt longer and costs far more in interest.

The lowest hourly pay an employer is legally allowed to give. The amount depends on federal, state, and sometimes city law, and the highest one that applies wins.

Managing your money from your bank's phone app: checking balances, moving money, depositing a check by photo, and paying bills.

Adding a paper check to your account by photographing the front and back with your bank's app instead of visiting a branch or ATM. The funds may take a day or more to become available.

A savings account that often pays a bit more interest and may come with limited check-writing. It is insured like other bank accounts.

A prepaid paper payment you buy for a set dollar amount, then give to someone like a check. Because you pay for it up front, it cannot bounce. You can buy one at a post office, bank, or many stores for a small fee.

A pool of money from many investors used to buy a mix of stocks, bonds, or both, managed as one fund. Buying a share gives you a slice of the whole mix.

NCUABanking

The National Credit Union Administration, a U.S. agency that insures money in credit union accounts up to a set limit if the credit union fails. It does for credit unions what the FDIC does for banks.

College money awarded because of a family's financial situation rather than achievements. Eligibility is usually figured from the FAFSA and the Student Aid Index.

Needs are things you must have to live, like food, housing, and basic transport. Wants are nice extras. Sorting spending this way is the first step in most budgets.

Your take-home pay, the amount that actually lands in your account after taxes and other deductions come out of your gross pay. Budget from this number, not your salary.

What a college actually costs after grants and scholarships are subtracted from the full price. It is a clearer number than the sticker price for comparing schools.

What you own minus what you owe. Add up your assets, subtract your debts, and the result is your net worth. Tracking it shows your overall financial progress.

A doctor, hospital, or pharmacy that has agreed to your insurer's rates. Staying in network usually costs you much less than going out of network, where you may pay a larger share or the full bill.

What happens when you try to pay and your account does not have enough money. The payment usually bounces and the bank may charge an NSF fee.

Online BankingBanking

Using your bank's website to view accounts, transfer money, and pay bills without visiting a branch.

The set period each year when you can sign up for or change health insurance and similar benefits. Outside this window you usually need a major life event, like a new job, to make changes.

An upfront charge a lender adds for processing a new loan, often a small percentage of the amount borrowed. It is sometimes taken out of the money you receive, so you get slightly less than the loan amount.

The most you will have to pay yourself for covered health care in a year. Once you hit it, insurance covers 100 percent of further covered costs.

Spending more than you have in your account, so the balance goes below zero. The bank may cover it for a fee or decline the payment.

A charge, often around 35 dollars, that a bank adds when it covers a payment you did not have the money for. Many banks now let you turn overdraft coverage off.

An optional bank service that covers a payment when your balance is too low, usually by pulling from a linked savings account or a small line of credit. It can prevent a declined charge, but the bank may still charge a fee.

Extra pay for hours worked beyond a standard week, often 40 hours. Many hourly jobs pay overtime at one and a half times the normal rate.

Paid Time OffIncome

Hours an employer lets you take off while still being paid, covering things like vacation, sick days, or personal days. The amount you get is part of your overall benefits.

The recurring length of time your pay covers, such as weekly, every two weeks, or monthly. It sets how often you get a paycheck and how each one is calculated.

An increase in your hourly wage or salary that raises your earnings going forward. It may reward performance, a promotion, or rising costs of living.

The breakdown that comes with your pay, showing your gross pay, the taxes and deductions taken out, and your take-home amount. It is worth reading to see where money goes.

A saving habit where you move money into savings as soon as you are paid, before spending on anything else. Treating savings like a required bill makes it more likely to actually happen.

The payment you get from an employer for your work, usually every week or two. Today it most often arrives by direct deposit rather than a paper check.

A small, short-term loan due by your next payday, with very high fees. The cost is so steep that many borrowers get stuck re-borrowing, so it is widely cautioned against.

Taxes taken out of wages to fund Social Security and Medicare, split between you and your employer. On your pay stub these usually appear under FICA.

Sending money straight from your account to another person through an app like Zelle, Venmo, or Cash App. Transfers are usually fast, but money sent to the wrong person can be hard to get back.

A federal grant for undergraduate students with the greatest financial need. Like other grants, it does not have to be paid back. You apply through the FAFSA.

A charge or deposit your bank has seen but not finished processing. The money is set aside but not fully moved yet, so your available balance already reflects it even though the transaction is not final.

A Personal Identification Number, the short secret code you enter to use a debit or ATM card. Keeping it private protects your account, so you should never share it or write it on the card.

The contract between you and an insurance company that spells out what is covered, what you pay, and the rules. Your policy is the source of truth for any claim.

The full collection of investments you own, taken together. A balanced portfolio spreads money across different types of assets.

The amount you pay for insurance, usually each month, to keep your coverage active. You pay it whether or not you ever file a claim.

A fee some loans charge if you pay the balance off early, because the lender loses out on future interest. Not all loans have one, so it is worth checking before paying ahead.

An early, informal check of whether you are likely to be approved for a card or loan and on what terms. It usually uses a soft inquiry, so it does not hurt your credit, but it is not a final guarantee.

The original amount of money, before any interest. When you save, it is what you put in; when you borrow, it is what you owe before interest is added.

An education loan from a bank or other lender rather than the federal government. It often has fewer protections and may need a cosigner, so students usually use federal loans first.

The legal document you sign when you take a loan, spelling out the amount, interest rate, payment schedule, and your promise to repay. Signing it makes the debt official and enforceable.

A tax on the value of property you own, mainly land and buildings, paid to local government. Renters pay it indirectly through their rent.

An official document a fund or company must provide that lays out how an investment works, its costs, and its risks. Reading it helps you understand what you are buying before you invest.

RebalancingInvesting

Adjusting your investments back to your target mix after market moves have shifted it. For example, selling some of what grew and buying what lagged to return to your planned balance of stocks and bonds.

A cost that repeats on a schedule, like a monthly subscription or yearly membership. They are easy to forget, so they are worth reviewing now and then.

Replacing an existing loan with a new one, usually to get a lower interest rate or a different payment. It can save money if the new terms are better.

Low-cost coverage that protects your belongings in a rented home from things like theft or fire, and can help if someone is hurt there. It does not cover the building itself.

When a lender legally takes back property, often a car, because you fell behind on payments for a loan that used it as collateral. You can still owe money if the resale does not cover the balance.

The stage of life when you stop working and live on money saved earlier. Investing a little for it while young gives compounding decades to work.

The gain or loss on an investment over time, often shown as a percentage. A 7 percent return means your money grew by 7 percent for that period.

Debt with no fixed payoff date that you can borrow, repay, and borrow again, like a credit card. As long as you owe a balance, interest keeps building.

How much ups and downs you can handle in your investments without panicking. People with more time before they need the money can usually take more risk.

An online service that builds and manages a simple investment mix for you using software, usually for a small fee. Defined here as a type of product, not a recommendation.

The cost of housing and meals at college, separate from tuition. It is a big part of the total cost of attendance.

A retirement account where you invest money you have already paid tax on, so qualified withdrawals later are tax-free. Often a strong fit for students and young earners in low brackets.

A nine-digit number that identifies your bank. Paired with your account number, it lets money move into or out of your account.

A quick mental shortcut for how long an investment takes to double: divide 72 by the yearly interest rate. At 6 percent, money roughly doubles in 12 years. It is an estimate, not an exact figure.

SalaryIncome

A fixed yearly pay split into regular paychecks, no matter the exact hours. A 52,000 dollar salary paid twice a month is 2,000 dollars before deductions each time.

An added charge on many purchases, set by state or local government. It is why the total at checkout is often a bit more than the price on the tag.

A bank account meant for money you want to set aside and grow a little. It pays interest and is not built for daily spending.

Money for school you do not repay, often awarded for need, grades, talent, or background. You can win scholarships from schools, companies, and community groups.

A starter credit card backed by a cash deposit you put down, which becomes your credit limit. It helps people build or rebuild credit with less risk to the lender.

A loan backed by collateral the lender can take if you do not pay, such as a mortgage or car loan. Because there is less risk to the lender, rates are often lower.

Working for yourself rather than an employer. You keep more control but must handle your own taxes, including the part an employer would normally cover.

Pay or benefits an employer may give when it lets a worker go, often based on how long they worked there. It is meant to provide a cushion while the person looks for new work.

A single unit of ownership in a company or fund. Owning one share makes you a part-owner entitled to a tiny slice of its value.

Work you do to earn extra money alongside a main job or school, like tutoring or selling crafts. Earnings can still be taxable.

Interest calculated only on the original amount, not on interest already earned. It grows in a straight line, unlike compound interest.

Money you set aside a little at a time for a known future cost, like holiday gifts or new tires. By saving ahead, the bill does not blow up your budget.

A check of your credit that does not affect your score, such as viewing your own report or a pre-approval offer. Only hard inquiries can lower your score.

A flat amount almost anyone can subtract from income to lower their taxes, no receipts needed. Most people take it instead of listing individual deductions.

A summary your bank or card issuer sends each month listing every transaction, your balance, and any fees. Reviewing it helps you catch mistakes and fraud.

The total you owed on your credit card at the end of the billing cycle. Paying this full amount by the due date is what keeps you out of interest charges.

A fixed, often modest, sum paid to cover living costs or support work like an internship, fellowship, or training. It may be paid in regular installments and is not always tied to hours worked.

A piece of ownership in a company. If the company does well its stock can rise in value; if it struggles the stock can fall. Stocks can grow a lot but swing more than bonds.

A marketplace, such as the New York Stock Exchange or Nasdaq, where shares of companies are bought and sold. Prices move throughout the trading day based on supply and demand.

A number from the FAFSA that schools use to size up your need for aid. It replaced the older Expected Family Contribution. A lower number generally means more aid.

Money borrowed to pay for college that you repay later, with interest. Federal student loans usually have lower rates and more flexible terms than private ones.

A service you pay for on a repeating basis, like a streaming app or gym. Small subscriptions add up, so it helps to track them.

A federal student loan for students with financial need where the government pays the interest while you are in school. That makes it cheaper than an unsubsidized loan.

Take-Home PayIncome

The money you actually receive after taxes and other deductions are subtracted from your gross pay. It is another name for net pay and is what lands in your account.

Money the government collects from people and businesses to pay for public services like schools, roads, and safety. Taxes come in many forms.

A review by the IRS or a state agency to check that the income and deductions on a tax return are accurate. Keeping good records makes it easier to answer questions if you are audited.

A range of income taxed at a certain rate. Higher income falls into higher brackets, but only the income inside each range is taxed at that range's rate.

An amount that comes straight off the tax you owe, dollar for dollar. A credit is usually worth more than a deduction of the same size.

The yearly due date for filing a federal tax return and paying any tax owed, usually April 15. Missing it can lead to penalties and interest unless you request an extension.

Money the government returns to you when you paid more tax during the year than you actually owed. It is your own money coming back, not a bonus.

The yearly form you file to report your income and figure out the tax you owe or the refund you are due. Most people file by mid-April.

The part of your income that is actually taxed, after deductions are subtracted. Lowering it through deductions lowers the tax you owe.

The short code that identifies a stock or fund, like AAPL for Apple. You use it to look up or trade an investment.

How long you plan to keep money invested before you need it. A longer horizon can allow for more risk because there is more time to recover from market drops.

The idea that a dollar today is worth more than the same dollar later, because money you have now can earn interest or returns over time. It is a big reason saving early matters.

Extra money customers give workers in jobs like serving food, on top of wages, as a thank-you for service. Tips count as income and are supposed to be reported for taxes.

The price a school charges for classes, not counting housing, food, or books. It is often the largest single part of college costs.

UnderwritingInsurance

The process an insurer or lender uses to weigh your risk and decide whether to cover or lend to you, and at what price. For insurance it helps set your premium.

A loan with no collateral behind it, like most credit cards and personal loans. Because the lender takes on more risk, the interest rate is usually higher.

A federal student loan where interest starts building right away, even while you are in school. Available to more students because it is not based on need.

Variable ExpenseBudgeting

A cost that changes from month to month, like groceries, gas, or going out. These are where you usually have the most control over spending.

The process of earning full ownership of employer-given benefits, like a 401(k) match, over time. If you leave before you are fully vested, you may forfeit part of what the employer contributed.

How much an investment's price jumps up and down. High volatility means bigger swings, which can mean more risk in the short term.

W-2Income

A form your employer sends each year showing what you earned and how much tax was withheld. You use it to file your tax return.

A form you fill out for a new job that tells your employer how much tax to withhold from your pay. Updating it adjusts your take-home pay.

Pay you earn for work, usually by the hour. Unlike a salary, wages rise and fall with the hours you put in.

A fast, direct electronic transfer of money from one bank to another, often used for large or urgent amounts. It usually costs a fee and cannot be reversed.

The tax your employer takes out of each paycheck and sends to the government for you. Get it about right and you avoid a big bill or a big refund at tax time.

A program that gives eligible students part-time jobs, often on campus, to help pay for school. You earn the money by working, and it does not need to be repaid.

YieldSaving

The income you earn from savings or an investment, shown as a percentage of what you put in. A 4 percent yield means you earn 4 dollars a year for every 100 saved.

Zero-Based BudgetBudgeting

A method where you assign every dollar of income a job until nothing is left unplanned. Income minus everything you assign equals zero, so no money goes missing.