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What Is Gross Income?

Gross income is often used by financial lenders as a guideline for how much they will let you borrow. Here’s what you need to know to stay financially savvy. Continue reading
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What Is a Stop Payment?

A stop payment is an instruction you give your bank to cancel payment of a check, electronic payment, or bank draft. Learn how to place a stop payment and more. Continue reading
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What Is a Stipend?

What does a stipend mean? How is a salary different? Learn what a stipend is, the eligibility rules, and if stipends are taxable with our financial glossary. Continue reading

What Is a Budget and Why Is Budgeting Important?

A budget is a way to track your income and expenses so you can gain control of your finances. Learn how to adjust spending habits and save for future goals. Continue reading

What Are Minimum Payments?

Minimum payments refer to the smallest amount you can pay on a debt and still be considered current with your payments. The term minimum payment is usually used in the context of credit cards. Even though you might think you're doing just fine paying the minimum, if that's all you pay, it can take you several years (and potentially thousands of dollars in interest) to pay off a debt. Continue reading

What Is Net Worth?

Your net worth refers to how much more your assets are worth than your liabilities. In short, your net worth is how much money you would have if you sold everything you own and used the proceeds to pay off your debts, explains personal finance blogger Trent Hamm in the Christian Science Monitor. If the money wouldn't be sufficient to pay off all your debts, you have a negative net worth. Continue reading

What Is Debt?

Debt refers to money that you owe someone else and includes things like credit card debt, student loans, car loans and mortgages. Though few people enjoy talking about it, debt levels in America are high: According to an article published in Time magazine, consumer debt in the United States exceeded $11.5 trillion in 2014. Repayment Terms When you borrow money, the lender generally sets the terms... Continue reading

What Are Payments?

Payments refer to the transfer of money or services by someone to fulfill his obligations to another party. In the personal finance area, payments refer to money given to creditors by the borrower to pay back loans such as credit cards, mortgages and student loans. Continue reading

What Is Overdraft Protection?

Overdraft protection is a service offered by banks that issues you a short-term loan when you make a purchase with your debit card or write a check for more than your balance. However, the service comes at a cost, and it can sometimes be far more expensive than having the purchase denied. Continue reading

What Is Financial Discipline?

Merriam-Webster defines "discipline" as "a way of behaving that shows a willingness to obey rules or orders." Though most people associate discipline with social behaviors, it also applies to how you manage your money. Financial discipline refers to how well you are able to conform your spending and saving to the plans that you have set to achieve your monetary goals. Continue reading