Amanda Stanhaus

Category: Financial Literacy Vocab

401 (k)

A portion of my paycheck is set aside and grows tax-deferred in the investment I choose. $$ is redeemed at retirement.  Sign up with Human Resources—the sooner the better.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

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403 (B)

401(k) for public employees.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Actively Managed Fund

A unique group of stocks and/or bonds that are picked by a money manager with a goal of buying low and selling high.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Alpha

A number that measures the performance of an investment compared to a benchmark, like the stock market index.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Amortization

Reducing my debt by paying installments over time. Ex. mortgage.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Annual Fee

Pay X each year.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Annual Report

A business’s Christmas letter. The once a year what’s happenin’ booklet with letters and photos. Check out the balance sheet, cash flow statement and comprehensive income statement.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Annuity

security. This investment pays the owner regularly. The owner is repaid the principal plus interest.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

Appreciation

How investments show their appreciation. If a stock’s price increases, the stock appreciates. This happens when a company makes a lot of money, or people think that the company will make more money.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)