Wednesday, 25 November 2020, 9:15 AM
Site: MoneyU
Course: MoneyU (MoneyU)
Glossary: MoneyU Glossary of Terms
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Simple interest

Interest calculated periodically on loan principal or investment principal only, not on previously earned interest.

Smart Card

A card containing a Central Processing Unit (CPU) that stores and secures information and makes decisions, as required by the card issuer's specific application needs.

Social security

The federal governmentÔÇÖs basic program for providing income when earnings are reduced or stopped because of retirement, or disability. Income is also provided to families when the working parent(s) dies and underage children are a part of the family.

Social Security Taxes

Social Security taxes are paid to Old Age Survivors and Disability Insurance (OASDI) and Medicare. For 2006, employee and employer each pay 7.65% of the first $94,200 of the employee's salary as Social Security taxes. For any additional income, employee and employer each pay 1.45% to Medicare. Self-employed persons pay 15.3% of their first $94,200 in salary to Social Security taxes in 2006. For higher incomes, they pay 2.9% to Medicare.

Spending Plan

A budget you use to track your income and expenses.

Springing Power Of Attorney

A power of attorney that takes effect at a predetermined time or at a particular event (such as disability).

State Unemployment and Disability (SUI/SDI)

Certain states require employees to contribute to this program, which pays benefits to people who are unemployed or currently unable to perform their job.

Step-Up CD

A certificate of deposit that benefits the investor if interest rates go up. You are allowed to adjust the rate on your CD (to a higher market rate) one time during the CD's term.

Stock

An investment that represents shares of ownership of the assets and earnings of a corporation.

Stocks

Securities representing equity ownership in a corporation.