Personal Finance Flashcards
Define Commission
Income from acting as an agent between buyers and sellers.
Define Disposable income
income after tax has been deducted (gross income – tax = disposable income).
Define Dividend
A payment made to a shareholder of a company as a cash reward for investing; are derived from the final profit after all business expenses have been deducted
Define Employee
A person working under the control of another, in return for a wage or salary.
Define Employer
A person or organisation that employs workers under a contract of employment
Define Fee
Income from providing a professional service
Define Flexitime
A system that provides salaried workers with flexible working hours.
Define Income
Money earned from working and the returns on investments.
Define Interest
Income received from investments.
Define Overtime
The excess amount of time worked
Define Penalty Rate
A rate of pay that is based on when the work is performed rather than how many hours are worked.
Define Profit
Income from selling goods or services minus the cost of selling the goods or services
Define Rent
Income received for the use of a property.
Define Return
The profit that an investor makes from an investment.
Define Royalties
Income from the sale of a piece of work e.g. song
Define Salary
Income received each year for a job
Define Shareholder
A person who owns a share of a company and has certain rights in relation to that company.
Define Social security
Payments made by the government to ensure all Australians have a liveable income.
Define Wage
Income received for work done based on the hours worked each week
Define Mortgage loan
An amount of money borrowed from a bank, usually to purchase property. The bank as security retains the ownership of the property until the loan is repaid.
Define Personal loan
An amount of money used for a specific consumer purpose e.g. travel
What are the sources of income and what type of payment are they
Working for employer-wage, salary, commission, fee
Working for yourself-profit
Payments form Gov-social security
Investing savings-interest/dividend
Renting out Property-rent
Creating something new-royalties
Playing Professional sports/gambler-prize money
What are the types of borrowing institutions and their types of loans
Banks, Building Societies and Credit Unions-Mortgage loans, Personal Loans, Small business loans.
Merchant Banks- Business loans
Finance Companies-Business loans, personal loans
Insurance companies-property loans
What are the credit card golden rules
- If you pay off your card each month- choose the card with the longest interest free period.
- If not, choose a no-frills card with the lowest interest rate, beware of honeymoon rates and be aware of interest.
- Then check annual fee and look at loyalty scheme.
