Personal Finance Vocabulary Flashcards
(18 cards)
Salary
A 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
Working time in excess of a standard day or week.
Debit Card
A card that resembles a credit card, but which debits a transaction account (checking account) with the transfers occurring contemporaneously with the customer’s purchases. A debit card may be machine readable, allowing for the activation of an automated teller machine or other automated payments equipment.
Credit/Credit Card
A card authorizing purchases on credit.
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.
Principle
The unpaid balance on a loan, not including interest; the amount of money invested.
Interest
A fee for the use of money overtime. It is an expense to the borrower and revenue to the lender. Also, money earned on a savings account.
Debt
A state of being under obligation to pay or repay someone or something in return for something received: a state of owing.
Checking Account
A bank account against which the deposit or 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.
