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Money Dictionary

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American Banking Association (ABA) Number   This nine-digit routing or transit number uniquely identifies the bank to which funds will be sent. So, if you want your paychecks deposited directly into your bank account, you would need to provide your bank's ABA number for direct deposit enrollment.
     
Annual Fees   This is the amount in fees you pay every year. For example, a credit card company may charge you an annual fee of $20 for giving you credit. 
     
Annual Percentage Rate (APR)   The APR is a measure of the cost of credit expressed as a yearly interest rate. Usually, the lower the APR, the better for you. Be sure to check the fine print in credit card offers for time limits. Your APR could be much higher after the offer's introductory period ends.
     
Appreciation   An increase in the market value of an asset. For example, a house can appreciate due to changing market conditions and/or home improvements made to the house.
     
Asset   Something of value, such as money, property, and investments.
     
Auto Title Loan   Auto title loans are short-term loans that provide borrowers with cash in exchange for the car's title as collateral. These loans are usually for only a fraction of the car's value - ranging anywhere from 25% to 55%. Interest rates are usually very high, as high as approximately 650% annually. New York State law limits the interest that may be charged on small loans to 25% per year, but out-of-state companies may be able to charge higher rates if permitted by their home states. Borrowers should shop around for auto title loans with reasonable interest rates.
     
Automated Clearing House (ACH)   A type of payment system designed to allow corporations and consumers to reduce or eliminate the use of paper checks when making routine high-volume, low-value payments. ACH systems process large volumes of individual payments electronically. Typical ACH payments include salaries, consumer and corporate bill payments, interest and dividend, and Social Security. Examples of private sector ACH providers in the U.S. include VISA, the New York Clearing House, and the American Clearing House.
     
Automated Teller Machine (ATM) Card   A card issued to an account holder to access Automated Teller Machines - computer terminals which allow consumers to make deposits and withdrawals.
     
Balance-transfer Fee   A fee a credit card company charges when you use one credit card to pay off another credit card bill. For example, if you have two credit cards (X credit card and Y credit card) and use X credit card to pay off your Y credit card bill, X credit card company will charge you a balance-transfer fee.
     
Bankruptcy   Legally declaring your inability to pay your debts. Bankruptcy can severely damage your credit and ability to borrow money in the future.
     
Bond   A bond is similar to an I.O.U. With a bond you lend money to a government, municipality, corporation, federal agency, or other entity known as the issuer. In return for the loan you provide them, the issuer promises to pay you a specific rate of interest during the life of the bond. When the bond hits its maturity date, the bond can be redeemed for its face value. For example, Bill buys a $300 bond for $150 with a maturity date of 10 years. After 10 years, Bill can redeem his bond for $300.
     
Bonus   Additional compensation an employee receives from an employer for services performed. For example, Larry earns $1,000 a week at his job, but at year-end his boss gives him $5,000 for all of his hard work. This "extra" amount of money is Larry's bonus.
     
Borrower   Person or organization (also known as "lendee") that applies for a loan from a lender.
     
Budgeting   A budget is a plan that shows how much money you have (income) and how much money you spend (expenses). Sticking to a realistic budget allows you to pay off your debts and save money.

OFE's Reference List for Money Dictionary