Personal finance vocabulary Flashcards
(18 cards)
Salary
fixed compensation paid regularly for services
Gross income
Total pay before taxes and other deductions are taken out
Net income
Amount of money you receive in your paycheck after taxes and other deductions are taken out; also called take-home pay.
Minimum wage
the lowest wage paid or permitted to be paid
specifically : a wage fixed by legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons
Overtime
time in excess of a set limit: such as
a
: working time in excess of a standard day or week
b
: an extra period of play in a contest
Debit card
A card used to make purchases at businesses (like grocery stores and gas stations) with money in your checking account
Credit card
An open-ended loan that allows you to borrow money up to a certain limit and carry over an unpaid balance from month to month. There is no fixed time to repay the loan as long as you make the minimum payment due each month. You pay interest on any outstanding credit card loan balance.
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
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 own whether that’s bank account or a credit card.
Principal
In the lending context, principal is the amount of money that you originally received from the lender and agreed to pay back on the loan with interest. In the investment context, it is the amount of money you contribute with the expectation of receiving income.
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
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
Mortage
a conveyance against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms
