personal finance vocabulary Flashcards
(18 cards)
salary
fixed compensation paid regularly for services
gross income
fixed compensation paid regularly for services
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 more than a standard day or 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a card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder’s bank account without the payment of interest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
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 bank account or a credit card account
principal
most important, consequential, or influential
interest
a charge for borrowed money generally a percentage of the amount borrowed
debt
something owed
checking account
a bank account against which the depositor can draw checks
savings account
An account at a bank (sometimes called a share savings account at a credit union) used to set aside money and that 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
Mortgage loans are used to buy a home or to borrow money against the value of a home you already own
