Income & Spending Flashcards
Direct Credit
An electronic transfer of funds, initiated by the payer, which sends funds directly into the bank account of the payee
Direct Debit
An arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills
Debit Card
A card allowing the holder to transfer money electronically from their bank account when making a purchase
Credit Card
A small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit
Automatic Payment
An automatic payment is a regular payment that is set up and controlled by you. The payment is always the same amount
E-Commerce
Commercial transactions conducted electronically on the internet
Gross Pay
The amount before any deductions. (pay rate x hours worked)
Net Pay
Gross Pay - All deductions. Actual amount you would receive as worker
Superannuation
Savings scheme workers contribute towards retirement funds. (gross pay x employee contribution % - gross pay x employer contribution %)
PAYE
Pay As You Earn - Income tax based on the amount you earn
Union Fee
Fees you pay to belong to the union. Workers belong to the union the protects their working conditions and rights
YTD
Year To Date - shows amount up to a point in time
Taxable Allowance
Extra income that you receive which will be subject to tax
Non-Taxable Allowance
Extra income that you receive which will not be taxed
Meal Allowance
Extra income given to workers when they work overtime through a meal break
Ordinary Time
8 hour day or 40 hour week
Overtime
Hours above ordinary time
Time and a half
1.5 x hourly wage rate
Double Time
Pay rate x 2
Triple Time
Pay rate x 3
Days In Lieu
Extra day/holiday is given for working a public holiday
EFTPOS
Electronic Funds Transfer at Point of Sale
PIN
Personal Identification Number
Barter
Barter is the exchange of goods and services without using money
Commodity Money
Commodity money is where the object has value itself as well as value in buying goods
Problems with Barter?
Lack of common measure
Problems with Commodity Money?
Fluctuation
Batercard
A bartercard is a ‘trade exchange’ system in which businesses can trade their goods and services with other businesses around the world. Bartercard operates in 8 countries including New Zealand.
Legal Tender
Coins or banknotes that must be accepted if offered in payment
Cheque is considered legal tender. True or False?
FALSE. A cheque is not considered legal tender because it is not mandatory to accept in offer of payment.
Reserve Bank of New Zealand
Manages New Zealand’s foriegn exchange reserves.
Money Qualities
durability, portability, divisibility
Defaced
when banknotes contain words, drawings, symbols and signs written or inscribed deliberatatly in the surface.
Demonetised
stripping a currency unit of its legal tender status
NZ Banknote Features
- Puzzle number
- Serial number
- Colour-changing bird
- Raised ink
- Metallic numbers and bird
- Metallic ferns and map
- Metallic 3D number
- Embossed number
- Large transparent window with an intricate border
- Fern window
Wages
usually paid by the hour e.g. $11/hour. A fixed regular payment earned for work or services, typically paid on a daily or weekly basis.
Wages - Advantages
- overtime pay is guaranteed
- typically short term or on an open contract (easy to switch jobs)
Wages - Disadvantages
- typically short term or on an open contract (not necessarily secured)
- generally earn significantly less than those with a salary
Salary
a fixed regular payment often expressed as a yearly sum but paid monthly.
Salary - Advantages
- people paid by salary often have more flexibility and can usually leave work occasionally if needed for medical appointments or family obligations
Salary - Disadvantages
- don’t generally get paid more for overtime work.
Earned Incomes
wages, salaries, tips
Unearned Incomes
birthday/gifted money, inheritance, financial prize won
May affect level of income
your skill, your education, economic trends
