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
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- the wage paid for working overtime
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A card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder’s bank account without the payment of interest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 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
A basic function usually provided by home banking programs by which a consumer can use a phone, personal computer or other electronic device to determine their balance of funds in a bank account
principal
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 and revenue to the lender. Also money earned on a savings account
debt
A state of being under obligation to pay or repay something in return for something received: a state of owing
checking account
A bank account against which the depositor can draw checks
Savings account
An account on which interest is usually paid and from which withdrawals can be made usually by only one 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
The rate required by Truth in Lending Laws it is designed to show customers the total cost of credit, including the stated interest rate plus certain finance and service charges
Mortgage
A conditional and temporary pledge of property to a creditor as security for the repayment of a debt