Investing
Unit 4 Vocab. List
Instructions: After looking up the definition, please put the definition into your own
words so that you understand it. You will be able to use this to study for the Unit test.
Vocab Word Definition in your own
words
1. 50-30-20 rule- Budgeting system used to split your money: 50 % for needs, 30% for wants,
and 20% for savings
2. ATM- machine where you can pull or put in cash into your checking account
3. Bank statement- Paper that shows all the money you spent and received in your bank
account
4. Benefits- Extra things you receive from a workplace, banking company, etc.
5. Cash- Physical money like bills and coins
6. Central Bank- The main bank that controls the money within a country
7. Certificates of deposit (CDs)- Saving account where you leave money for a set time and
earn interest
8. Checking account- Bank account for daily use, like spending and paying bills
9. Check- Paper that tells the bank to pay someone from your bank account
10.Check cashing store- Place where you can turn checks into cash for a fee
11. Compound interest- Earning interest on both the money you saved and the interest it
earned
12.Contractionary Policy- When the gov tries to slow down the economy by raising interest
rates or taxes
13.Credit card- card you use to borrow money for purchases
14.Credit Union- Bank owned by its members
15.Debit- Money taken out of your account
16.Debit card- Card that uses money directly from your bank account for a purchase
17. Debt- Money you owe someone
18.Deposit- Money you put into a bank account
19.Digital Wallet- App on your phone to store your payment information into
20.Direct deposit- When your paycheck is goes straight into your bank account
21.Economic growth- When a country makes more goods and services over time
22.Emergency fund- Savings for unexpected expenses
23.Employment- Having a job
24.Expansionary Policy- When the gov tries to boost the economy by lowering interest rates
or taxes
25.FDIC insurance- Insurance that protects bank deposits
26.Financial institutions- A company that deals with financial transactions, like banks and
credit unions
27.Inflation- A general increase in prices and fall in the purchasing value of money
28.Interest- The cost of borrowing money
29.Interest rates- The percentage charged on borrowed money
Unit 4 Vocab. List
Instructions: After looking up the definition, please put the definition into your own
words so that you understand it. You will be able to use this to study for the Unit test.
Vocab Word Definition in your own
words
1. 50-30-20 rule- Budgeting system used to split your money: 50 % for needs, 30% for wants,
and 20% for savings
2. ATM- machine where you can pull or put in cash into your checking account
3. Bank statement- Paper that shows all the money you spent and received in your bank
account
4. Benefits- Extra things you receive from a workplace, banking company, etc.
5. Cash- Physical money like bills and coins
6. Central Bank- The main bank that controls the money within a country
7. Certificates of deposit (CDs)- Saving account where you leave money for a set time and
earn interest
8. Checking account- Bank account for daily use, like spending and paying bills
9. Check- Paper that tells the bank to pay someone from your bank account
10.Check cashing store- Place where you can turn checks into cash for a fee
11. Compound interest- Earning interest on both the money you saved and the interest it
earned
12.Contractionary Policy- When the gov tries to slow down the economy by raising interest
rates or taxes
13.Credit card- card you use to borrow money for purchases
14.Credit Union- Bank owned by its members
15.Debit- Money taken out of your account
16.Debit card- Card that uses money directly from your bank account for a purchase
17. Debt- Money you owe someone
18.Deposit- Money you put into a bank account
19.Digital Wallet- App on your phone to store your payment information into
20.Direct deposit- When your paycheck is goes straight into your bank account
21.Economic growth- When a country makes more goods and services over time
22.Emergency fund- Savings for unexpected expenses
23.Employment- Having a job
24.Expansionary Policy- When the gov tries to boost the economy by lowering interest rates
or taxes
25.FDIC insurance- Insurance that protects bank deposits
26.Financial institutions- A company that deals with financial transactions, like banks and
credit unions
27.Inflation- A general increase in prices and fall in the purchasing value of money
28.Interest- The cost of borrowing money
29.Interest rates- The percentage charged on borrowed money
