Glossary
Annual Return
The profit or loss on an investment over a one-year period.
APR (Annual Percentage Rate)
The cost of borrowing money on a yearly basis, expressed as a percentage rate.
Asset
An item with economic value, such as stock or real estate.
Beneficiary
Someone or something named to receive proceeds or benefits. In the insurance context, it’s the person, charity, trust, or estate designated by the policyholder to receive the policy's benefits or payments
Bill-payment service
A service you set up with a bank, credit union, prepaid card account, or a business you owe money to that lets you pay bills online or through a mobile app.
Bond
A type of debt. When you buy a bond, you’re lending to the issuer, which may be a government, municipality, or corporation. The issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal — also known as the bond’s face value or par value — when the bond "matures," or comes due after a set period.
Card replacement fee
A fee your prepaid card provider may charge to replace your card if it is lost, stolen, or damaged.
Capital gain
The profit that comes from selling an investment for more than you paid for it.
Capital loss
The loss that comes from selling an investment for less than you paid for it
Data breach
The unauthorized movement or disclosure of sensitive information to a party, usually outside the organization, that is not authorized to have or see the information. Someone who gets the data might use it for identity theft.
Debit card
A card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account.
Depository institution
A financial institution like a bank or credit union that is authorized to accept checking and saving deposits.
Emergency fund
A cash reserve that's specifically set aside for unplanned expenses or financial emergencies. Some common examples include car repairs, home repairs, medical bills, or a loss of income.
Exchange rate
A number that is used to compare the value of money in two different countries. For example, you would use an exchange rate to figure out how many pesos or euros you could get for one U.S. dollar.
Entrepreneur
Someone who organizes, manages, and assumes the risks of a business or enterprise.