taxes
A tax on wages or salary (amount earned) paid to both state (in NC) and federal governments.
Income tax
The charge for the privilege of borrowing money, typically expressed as a percentage rate.
interest
These two types of accounts, maintained by commercial banks and credit unions, may or may not have associated fees, pay interest, or require minimum balances. Deposits and withdrawals are made directly from such accounts, often via bank tellers and ATMs.
checking and savings accounts
A personal budget should account for these two line items.
income (revenue) and expenditure (expenses)
A United States federal tax form issued by employers stating how much an employee was paid in a year. It is submitted to the IRS along with your tax return.
W-2
This tax applies the same tax rate across low-, middle- and high-income taxpayers.
flat (or proportional) tax
This interest rate, which factors in borrowing fees, must be divulged by lenders so that you may more easily compare rates.
annual percentage rate
Low-risk investments generally yield a low rate of return. The converse of the above rule states this.
greater the risk, the greater the reward
This is the income received prior to taxes and deductions.
gross pay
Currently, it amounts to $7.25/hr, though efforts are being made by the Obama Administration to raise it to approximately $10/hr.
(federal) minimum wage
A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. In the U.S., federal income tax rates range from 10% to 35%.
progressive tax
A record (accompanied by a rating) of a consumer's ability to repay debts and demonstrated responsibility in repaying debts.
credit history (or credit report)
The term that denotes the amount borrowed or the amount still owed on a loan, OR the original amount invested.
principal
This is income after taxes and deductions.
net pay
This tax withholding form is completed at the time of employment so that your employer can withhold the correct federal income tax from your pay. Tax deductions or allowances are made for children and other dependents.
W-4
A tax that takes a larger percentage from low-income people than from high-income people. Though a tax that is generally applied uniformly, it hits lower-income individuals harder.
regressive tax
Something pledged as security for repayment of a loan (e.g. a house or car), to be forfeited in the event of a default.
collateral
Interest calculated on the initial amount deposited or loaned and also on the accumulated interest of previous periods of a deposit or loan. It can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest.
compound(ed) interest
These types of expenses remain unchanged from period to period. Examples include mortgage or rent, insurance, and, often, utilities.
fixed expenses
This is maintained, either electronically or by hand, to account for deposits, withdrawals and other line items.
bank register
The Federal Income Contributions Act (FICA) requires that you pay these two "payroll taxes" (for retirement and healthcare)
Social Security and Medicare taxes
In general, the longer the term of the loan, the higher this is.
interest rate
This "rule" is a simple, and relatively accurate way, to calculate (divide by rate) the amount of time it will take to double the value of an investment at a specified rate of return.
Rule of 72
These types of expenses fluctuate or change from period to period. Examples include personal entertainment or travel costs, and other discretionary items.
variable expenses
This insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
FDIC