Financial Literacy Glossary of Terms

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Financial literacy refers to a person's ability to make good financial decisions. Without it, people will struggle to make ends meet, to plan their finances, and to achieve economic well-being. 

You have already taken the first step by connecting with ATS Financial Literacy Foundation.  We can help you learn and plan so that you are on the path to financial freedom and long-term success. 

Annual percentage rate (APR) – the interest rate charged, expressed as a percent per year, for the use of credit 

Assets – possessions that have economic value (some of which may provide an economic and/or financial return) 

Bond – a certificate of indebtedness issued by a government or a company, promising to repay borrowed funds to the lender at a fixed rate of interest and at predetermined intervals 

Budget – a plan to manage income, spending and saving 

Capital gains – a profit realized from the sale of property, stocks or other investments 

Certificate of deposit (CD) – a certificate issued by a bank to a person depositing money in an account for a specified period of time. A penalty is charged for early withdrawal from most CD accounts. 

Click here for a more expansive list of financial literacy terms.