Education

Managing your finances online is convenient and efficient, but it's important to stay secure. By following a few best practices—like using strong passwords, enabling two-factor authentication, and monitoring your accounts regularly—you can keep your information safe while enjoying the full benefits of online banking.

Consumer Education Resources

https://www.consumerfinance.gov/consumer-tools

Finance Terms 

Here are some common personal finance terms with brief explanations:

Amortization:

The process of paying off a loan over time through regular payments that cover both principal and interest.

APR (Annual Percentage Rate):

A broader measure of the cost of borrowing, expressed as an annual rate, including interest and fees.

Budget:

A financial plan that outlines expected income and expenses over a certain period, helping individuals manage their money.

Collateral:

An asset that a borrower offers to a lender as security for the loan. If the borrower defaults, the lender can seize the collateral.

Compound Interest:

Interest calculated on the initial principal and also on the accumulated interest from previous periods, which can significantly increase the total over time.

Cosigner:

A person who agrees to take responsibility for repaying the loan if the primary borrower defaults.

Credit Score:

A numerical rating that represents an individual's creditworthiness based on their credit history. It's used by lenders to determine loan eligibility and interest rates.

Debt-to-Income Ratio (DTI):

A metric that compares an individual's monthly debt payments to their gross monthly income, used by lenders to assess the ability to manage payments.

Diversification:

The practice of spreading investments across different assets to reduce risk.

Emergency Fund:

A savings buffer for unexpected expenses, such as medical emergencies, car repairs, or sudden unemployment.

FICO Score:

A type of credit score created by the Fair Isaac Corporation, commonly used by lenders to assess credit risk.

Fixed-Rate Loan:

A loan with an interest rate that remains constant throughout the term of the loan.

Inflation:

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Interest Rate:

The percentage charged by lenders on the amount borrowed or the percentage earned on savings or investments.

Liability:

Any financial obligation or debt owed by an individual, such as loans, mortgages, or credit card balances.

Loan Origination Fee:

A fee charged by the lender for processing a new loan application, usually expressed as a percentage of the loan amount.

Mortgage:

A loan specifically used to purchase real estate, where the property itself serves as collateral.

Mutual Fund:

A pool of money collected from many investors to invest in a diversified portfolio of stocks, bonds, or other securities, managed by a professional.

Net Worth:

The total value of all assets owned (like property, investments, cash) minus all liabilities (debts).

Principal:

The original amount of money borrowed or the remaining balance of a loan, excluding interest.

Refinancing:

Replacing an existing loan with a new one, usually to take advantage of lower interest rates or better terms.

Roth IRA:

An individual retirement account that allows after-tax contributions, with earnings and withdrawals typically tax-free.

Savings Account:

A bank account where you can deposit money and earn interest over time, typically offering higher security and lower interest rates compared to other investment options.

Secured Loan:

A loan backed by collateral, such as a mortgage or auto loan.

Term:

The length of time over which a loan must be repaid, usually expressed in months or years.

Unsecured Loan:

A loan not backed by collateral, such as personal loans or credit cards.

Variable-Rate Loan:

A loan with an interest rate that can change over time, typically in relation to a benchmark rate.