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
