Create
Learn
Share

Personal Finance Terms

rename
Updated 2007-01-16 23:07

Summary

Terms and concepts surrounding personal finance, including basic loans, taxes, and invenstments, etc.

Loans

Acronyms

Acronym or TermDescription
APRAnnual Percentage Rate
APYAnnual Percentage Yield
ARMAdjustable rate mortgage
APYEAnnual Percentage Yield Earned
FHLMA (aka "Freddie Mac")Federal Home Loan Mortgage Corporation
memorize

Terms

TermDescription
EquityDifference between fair market value and current indebtedness
Prime RateWhat banks charge their best corporate customers (quoted in the Wall Street Journal)
Disposable IncomeMonthly income left after monthly debt and housing expenses
Debt RatioRatio between monthly debt (including housing costs) divided by monthly income
Credit Card RatioRatio of credit card balances to the credit card limits
memorize

Investments

Question Answer
401(k)Retirement account funded by employee (and sometimes employer) contributions
IRAIndividual Retirement Account (tax-sheltered)
Junk BondA high-risk bond offering high yield (often for a takeover of a company)
Mutual fundDivided into several stocks
RecessionTwo consecutive quarters of declining real GDP
GDPGross Domestic Product
memorize

Tax forms

Question Answer
1099For stock you own (summarizes dividends)
W2Shows your annual wages and tax withheld (employer sends this to you IRS)
W4You file it with employer so they know amount of tax to withhold
Date ofApril 15
Extensionrequest to file taxes late
AuditIRS looks into your taxes
memorize

See also

Recent badges