Personal finance Flashcards
(18 cards)
Salary
Fixed compensation paid regularly for services
Gross income
All income derived from any source except for items specifically excluded by law
Net income
The balance of gross income remaining after all allowable deductions and exemptions are taken
Minimum wage
The lowest wage paid or permitted to be paid
Overtime
Time more than a set limit
Debit card
A card like a credit card by which money may be withdrawn or the costs of purchases paid directly from the holder’s bank account without the payment of interest
Credit
Reliance on the truth or reality of something
Credit limit
The most money that a bank or business will allow a person to borrow
Credit rating
A score or grade that a company or organization gives to a possible borrower and that indicates how likely the borrower is to repay a loan
Account balance
How much money you have in an account or how much money you owe whether that’s a bank account or a credit card account
Principal
An amount of money you borrow
Interest
A charge for borrowed money generally a percentage of the amount borrowed
Debt
Something owed
Checking account
A bank account against which the depositor can draw checks
Savings account
An account on which interest us usually paid and from which withdrawals can be made usually only by presentation of a passbook or by written authorization on a prescribed form
401(K)
Retirement account to which employee and employer contribute on which taxes are deferred until withdrawal and for which the employee usually selects the types of investments
APR
A measure of the annual percentage cost of consumer credit (as in installment buying or a charge account) that is required by law to appear on statements of credit accounts and is variously computed but always takes into consideration the amount financed, the amount of the finance charges, and the schedule of repayment
Mortgage
A conveyance that becomes void upon payment or performance according to stipulated terms
