personal finance final

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net income

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Finance

42 Terms

1

net income

full income before deductions.

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2

gross income

income after deductions.

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3

financial aid

money given to help people pay for college.

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4

scholarships

money use to help pay for college based on ability like sports etc.

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5

Grants

Money used to help pay for college based of national, sex, race etc.

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6

Federal loans

Loans you take out for paying thing by the government.

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7

FAFSA

Form used to help figure out which types of financial aid people have and organize it.

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8

Cost of living

The cost of surviving in an area like housing and food etc.

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9

Median wage

The middle of what certain wages get paid for certain jobs in a certain area.

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10

Items in a budget

money that is organized to figure what and when to pay for.

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11

Emergency Fund

money saved in case of an emergency.

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12

Net monthly income

Monthly income before deductions.

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13

Savings Account

An account use for savings for something which earns intrest over time.

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14

Debit card

A card where you can spend, but not over what you have on the card.

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15

Check

a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.

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16

Income Tax

a tax on people´s income used by the government.

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17

Property tax

a tax paid on property owned by an individual or other legal entity, such as a corporation.

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18

Sales Tax

a tax on items you buy, but it differs from state to state.

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19

Excise tax

Taxes that prevent bad habits by taxing them, but has deductions on good habits.

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20

W-4 Form

A filled out by an employee to figure out how much to withhold from paycheck to put toward federal taxes.

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21

w-2 Form

A filled out by an employer to figure out how much to withhold from paycheck to put toward federal taxes.

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22

Credit Score

A score based on how well you use your credit card it goes from 300-850.

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23

Credit Utilization

The percent of your credit card you can use.

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24

Credit Card

Card you use buy, but you have to pay later so you have to make sure you do not go into debt.

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25

Principal balance

The amount of money of the original loan.

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26

Interest Rate/APR

Annual percent fees per and interest rate is the growth per year.

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27

Amortization

the action or process of reducing or paying off a debt with regular payments.

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28

Loan term

amount time on a loan

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29

Net Worth

asset - debts

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30

Premium

amount of money paid perodically.

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31

Deductible

amount taken out of check for important things like healthcare.

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32

Liability

owing a company or someone money.

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33

Co- pay

a flat fee that you pay on the spot each time you go to your doctor or fill a prescription.

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34

401k

a defined contribution plan where an employee can make contributions from his or her paycheck either before or after-tax, depending on the options offered in the plan.

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35

Stocks

a share in the ownership of a company, including a claim on the company's earnings and assets.

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36

Bonds

a debt security, similar to an IOU in a business.

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37

Commodities

Raw material type of stock.

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38

Mutual Funds

types of stock that are grouped together.

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39

Real estate

something you own that is attached to a piece of land.

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40

Return on investments

money you get back on investments.

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41

Profit or loss

gaining or losing money.

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42

Checking account

Account held at a bank and can be accessed by an account holder

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