Personal Finance Vocabulary Flashcards
(18 cards)
Salary
Compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.
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
A wage set by contract or by law as the lowest that may be paid to employees.
Overtime
working time in excess of a standard day or week
ATM/Debit Card
A bill-paying method you set up with the merchant or service provide
Credit/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.
Credit Limit
A limit set by the credit card company on how much you can charge on the card it issued to you.
Credit Rating
An estimate of the amount of credit that can be extended to an individual or business without undue risk.
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
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.
Interest
A fee charged by a lender, and paid by a borrower, for the use of money
Debt
Money you owe another person or a business
Checking Account
An account at a bank (sometimes called a share draft account at a credit union) that allows you to make
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 investment
APR
annual percentage rate
Mortgage
Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.
