Vocabulary Week 2

Question 1

Money Order

Answer 1

a form of guaranteed payment that is considered to be secure; generally are obtained outside of a bank such as the post office, Walmart, and other stores

Question 2

Net Pay

Answer 2

the money that actually goes into the bank account from your paycheck

Question 3

Paycheck

Answer 3

the method of payment from earnings due to employment

Question 4

Paycheck stub/ earnings statement

Answer 4

a record showing proof of paycheck including: Gross Wages, FICA, and Medicare which are required deductions along with optional deductions and Net pay

Question 5

Profit

Answer 5

sales revenue minus all expenses. This is the amount that a business actually gets to put in their account. This is the taxable income

Question 6

Purchasing Power

Answer 6

the maximum ability to stretch the amount of money a consumer has. For instance, purchasing power is lowered in a fixed income senior citizen’s situation

Question 7

Rental Income

Answer 7

the amount of revenue received through having rental properties

Question 8

FICA

Answer 8

another term for Social Security and is a required deduction on a pay stub

Question 9

Social Security

Answer 9

This means FICA and is a required deduction on a paystub

Question 10

State Taxes

Answer 10

taxes that are due to the state that the consumer lives in and taxes generally used to pay for state items such as education or public roads

Question 11

Store Card

Answer 11

generally a credit or debit card that can be used in a store. In terms of Econ Lingo, most use this to reference credit cards owned by the store

Question 12

Store Cash Card

Answer 12

a debit card that is used and owned by a store

Question 13

Supply and Demand

Answer 13

the idea that there should be an equilibrium supply and demand; this is where the economy and businesses are most healthy

Question 14

Supply and Demand (my definition)

Answer 14

the idea that there should be an equilibrium between what consumers need and the ability of companies to supply that need

Question 15

Tax Refund

Answer 15

means that there was an overpayment of taxes so the government has to pay the consumer the difference

Question 16

U.S Treasury Department

Answer 16

this federal government agency is responsible for keeping up the value currency and hold its value along with the monetary fiscal policy

Question 17

Mobility

Answer 17

the ability to be able to receive promotions/ climb up the career ladder

Question 18

Windfall Income

Answer 18

a large amount of money received at one time (i.e. lottery, inheritance, gambling)

Question 19

Wages

Answer 19

amount earned through employment; underground does not count

Question 20

Balanced Budget

Answer 20

making sure that your expenses on your budget match the expenses that actually happened throughout the month

Question 21

Budget

Answer 21

shows your expenses, your income, and breaks down the spending allowance per month

Question 22

Deficit

Answer 22

usually used to refer to constantly overspending compared to what you make

Question 23

Discretionary Income

Answer 23

any money left over after all monthly expenses are paid that can be used for savings or other items

Question 24

Emergency Fund

Answer 24

usually 3 - 6 months of savings that a consumer has in case something bad happens. Examples are health issues, losing a job, or in case of a divorce

Question 25

Fixed Expenses

Answer 25

expenses that stay the same from month to month such as rent