Income
Total Earnings before taxes and deductions
Gross Income
A plan for managing income and expenses over a specific period.
Budget
A numerical representation of a person's creditworthiness based on their credit history
What is a Credit Score.
This bank account used for daily transactions, such as deposits and withdrawals.
What is a checking account?
A financial obligation or debt owed by an individual.
What is a liability?
Earnings after taxes and deductions, often referred to as "take home pay"
Net Income
Costs or expenditures incurred for goods and services (rent, utility, groceries,etc...)
Expense
Money borrowed that must be repaid.
Debt
This is money borrowed that must be repaid with interest.
What is a loan?
An amount that can be directly deducted from the taxes owed.
What is a tax credit?
Earnings from investments or other sources not directly tied to active work. Examples include rental income, dividends, etc...
Passive Income
Regular, unchanging costs (rent, subscriptions)
Fixed Expenses
The percentage charged on borrowed money or earned on savings.
Interest Rate
This is a loan specifically for purchasing property.
What is a mortgage?
The unauthorized use of someone's personal information to commit fraud or other crimes.
What is identity theft?
The return on on savings/investments
Interest
Varialbe Expenses
This interactive terminal with a touch screen or keypad that allows consumers with credit cards or debit cards to withdraw cash, check balances and/or make deposits.
What is an ATM?
This bank account earns interest on deposited funds.
What is a savings account?
This is something of value owned by an individual.
What is an asset?
A measure of the profitability of an investment
ROI (Return on Investment)
Money set aside for future use, often in a savings account or emergency fund.
Savings
This can be pledged against a debt. If the debt is unpaid, the lender can seize the item as payment for the debt.
What is collateral?
What is insurance?
The ease with which an asset can be converted into cash without affecting its price.