Personal Finance terms Flashcards
Budget
an estimate of income and expenditure for a set period of time.
Deductions
Amounts taken from taxable income before paycheck is finalized
Expenses
Monthly, re-occuring fixed amounts needed to be paid in a fixed length of time
Income
Money(s) earned from a job that is taxable and fixed
Interest
The growth of money, either loaned or invested, over a fixed rate of time with a fixed percentage
Mortgage
a loan with a long duration (15-30 years) with a fixed payment that is reserved for owning property/a home
Price
A current, varying amount that is needed to be paid for a good and service
Retail
Items for sale that are readily -available, mass produced, and sold in stores to the general public
Salary
a fixed rate of pay for a job that is not dependent on hours or work done, the amount remains the same
Wage
An amount of money paid for a specific job with varying rates
Discretionary Income
the amount of money left to spend after paying taxes and rent, food, clothing
Money
Currency used to buy goods and services
Inflation
A measure of rate of rising prices of goods and services in an economy and a fall in the purchasing value of money
Deficit
the amount by which a sum of money is too small
Surplus
the amount of money that is more than is needed
Variable Expense
costs that change over time
Fixed Expense
costs that change over time
Net Pay
earnings after deductions are taken out
Gross Pay
What employees earn before taxes, benefits and other pay roll deductions are withheld
Pay Period
A pay is a time frame used to calculate earned wages and determine when employees receive their paychecks
Compound Interest
money earned based on an initial investment
Savings Account
An account where your money is saved, not linked to spending account
Annually
yearly
Bi-annually
twice per year
Quarterly
4 times per year
Monthly
every month
Principal
Initial investment
Daily
every day
Simple Interest
Money earned over time on an account
Checking account
Spending account linked to a debit card
