personal finance vocabulary 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
Amount of money you receive in your paycheck after taxes and other deductions are taken out
Minimum wage
A wage set by contract or by law as the lowest that may be paid to employees.
Overtime
working time in excess of a standard day or week
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a card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder’s bank account without the payment of interest
Credit/Credit Card
Borrowing money, or having the right to borrow money, to buy something. Usually it means you’re using a credit card, but it might also mean that you got a loan.
Credit Limit
A limit set by the credit card company on how much you can charge on the card it issued to you. You can use your credit card to make purchases up to your credit limit.
Credit Rating
An estimate of the amount of credit that can be extended to an individual or business without undue risk. (See also credit score)
Account Balance
How much money you have in an account or how much money you owe
Principal
The unpaid balance on a loan, not including interest; the amount of money invested.
Interest
A fee charged by a lender, and paid by a borrower, for the use of money. A bank or credit union may also pay you interest if you deposit money in certain types of accounts.
Debt
Money you owe another person or a business.
checking account
An account at a bank (sometimes called a share draft account at a credit union) that allows you to make deposits, pay bills, and make withdrawals.
savings account
An account at a bank (sometimes called a share savings account at a credit union) used to set aside money and that pays you interest.
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
APR
The cost of borrowing money on a yearly basis, expressed as a percentage rate. including the stated interest rate plus certain finance and service charges.
mortgage
A temporary and conditional pledge of property to a creditor as security for the repayment of a debt.
