Personal finance vocabulary Flashcards
(16 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
money earned at an increased rate for working more than the usual number of hours in one 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a card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder’s bank account without the payment of interest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
a card authorizing purchases on credit
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
PRINCIPLE
The unpaid balance on a loan, not including interest; the amount of money invested.
INTEREST
A fee for the use of money over time. It is an expense to the borrower and revenue to the lender. Also money earned on a savings account.
DEBT
something owed
CHECKING ACCOUNT
a bank account against which the depositor can draw checks
SAVINGS ACCOUNT
an account (as in a bank) 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
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
annual percentage rate
MORTGAGE
A temporary and conditional pledge of property to a creditor as security for the repayment of a debt.
