Personal finance vocabulary Flashcards
(18 cards)
Salary
A fixed sum paid for a specific period of time worked, such as weekly or monthly
gross income
Total pay before taxes and other deductions are taken out
net income
Amount of money you receive in your paycheck after taxes
minimum wage
A wage set by contract or by law at the lowest that may be paid to employees
overtime
Money earned at an increased rate for working more than the usual number of hours in one week
ATM/debit card
A card used to make purchases at businesses
credit card
Open-ended loan that allows you to borrow money up to a certain limit
credit limit
A limit set by the credit card company on how much you can charge on the card
account balance
How much money you have in an account or how much money you owe whether thats a bank account or credit card account
principle
Amount of money you originally received from the lender
interest
Fee charged by lender
debt
Money you owe another person or a business
checking account
An account at a bank that allows you to make deposits, pay bills, make withdrawals
savings account
An account at a bank used to set money aside and 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)
mortgage
Loans used to buy a home or to borrow money against the value you already have
credit rating
An estimate of the amount of credit that can be extended to an individual or business without undue risk
