Pay Checks
The amount of money taken out of a workers paycheck each month.
What is a deduction?
Examples of this type of expense include mortgage/rent, insurance, real estate taxes, and vehicle registration.
What are fixed expenses?
The method that is commonly used to determine a manageable budget.
50/30/20 method
This is what credit card companies charge for use their money.
What are finance charges?
This is a high risk investment where you purchase part of a company that can increase in value or decrease in value.
What is a stock?
The amount of money you make on top of your hourly wage if you work extra hours.
What is overtime pay?
Examples of this type of expenses include groceries, car repairs, electricity bill, etc.
What are variable expenses
The name of the annual interest rate you will be charged if you carry a balance on a credit card.
What is an annual percentage rate?
This is a low risk investment where you are guaranteed the original amount you loaned to the government back with interest
What is a bond?
The difference between gross pay and net pay is?
Gross pay is your total earnings before taxes and net pay is your total after deductions are taken out.
The term used to describe unplanned, spontaneous purchases triggered by emotions.
What are impulse purchases?
This is the best way to protect your credit rating.
What is pay your bills on time?
Describe closed-end credit and give an example of what you would buy using closed-end credit.
Closed-end credit is when the account is closed when the full amount has been paid. Examples are cars, furniture, houses, or appliances.
This is kind of market is when the stocks are increasing and earning more money AND decreasing and losing money
What is a Bull & Bear market?
List 3 deductions from your paycheck that are mandatory.
What is federal income tax, state income tax, medicare, social security, FICA taxes, local taxes.
List 3 benefits of creating a budget
Control over your money, avoid impulse buying, motivates you to save/pay off debt, aides your financial goals, gives you peace of mind.
The lender's right to claim collateral until the loan payment is made
What is a lien?
Name two of the three companies that can check your credit score
Equifax, TransUnion, Experian
This term is where you put money into a variety of different stocks, bonds, mutual funds, and exchange-traded funds to increase your investment portfolio.
What is diversification?
Money remaining after taxes have been deducted and the person can spend as he/she wishes.
What is disposable income?
This term is used to describe money spent on non-necessities or "wants."
What is discretionary spending?
The difference between the value of the property and whatever amount is still owed on the mortgage of the property
What is equity?
A type of credit that can be used repeatedly with the option to pay it off in full or making monthly payments.
What is revolving credit?
This term represent interest earned on both the principal amount of money and the interest that has already been earned over time
What is compound interest?