Personal finance vocab Flashcards
(18 cards)
What is salary?
Fixed compensation paid regularly for services.
What is gross income?
All income derived from any source except for items specifically excluded by law.
What is net income?
The balance of gross income remaining after all allowable deductions and exemptions are taken.
What is minimum wage?
The lowest wage paid or permitted to be paid.
What is overtime?
Working time in excess of a standard day or week.
What is an ATM/Debit Card?
A card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder’s bank account without the payment of interest.
What is a Credit/Credit Card?
A card authorizing purchases on credit.
What is a credit limit?
The most money that a bank or business will allow a person to borrow.
What is a 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.
What is account balance?
How much money you have in an account or how much money you owe.
What is principle??
A capital sum earning interest, due as a debt, or used as a fund.
What is interest?
A charge for borrowed money generally a percentage of the amount borrowed.
What is debt?
Something owed.
What is a checking account?
A bank account against which the depositor can draw checks.
What is a savings account?
An account on which interest is usually paid and from which withdrawals can be made usually only by presentation of a passbook or by written authorization on a prescribed form.
What is a 401(k)?
A 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.
What is APR?
The rate required by Truth in Lending laws, designed to show customers the total cost of credit, including the stated interest rate plus certain finance and service charges.
What is a mortgage?
A conveyance of or lien against property that becomes void upon payment or performance according to stipulated terms.
