Personal Finance Vocabulary
When a business, or person is unable to pay her or his debts
What is bankrupt?
The amount of money a person is paid from their job.
What is income?
sum payable as profit for shares
What is dividend?
When goods are bought now and paid for later.
What is credit?
A plan and record of spending.
What is a budget?
Money that remains after you have paid for regular or needed expenses?
What is discretionary income?
An investor bought 40 shares in ABC Corporation at $80 a share.
What is stock?
The more a person has, the higher their potential income earnings will be.
What is education?
Expenses that are the same amount every time
What is Fixed expenses?
When goods are bought now and paid for now with my money.
What is debit?
The first category after income when creating a budget.
What is savings/pay yourself first?
A safe but long term investment, considered an IOU and paid back at a state rate of interest.
What is a bond?
A number that shows how well a person manages their money, a financial grade.
What is credit score?
The three main types are: income, property and sales.
What are taxes?
Expenses that change from month to month, like groceries or utilities.
What are variable expenses?
What are the 5 main types of taxes?
What are Income, Payroll, Property, Sales, & Excise?
A high interest savings account that requires the money be left for a set time period (2, 5 or 10 years).
What is a certificate of deposit, CD?
The next best alternative that must be given up when a choice is made
What is Opportunity Cost?
The total amount of money earned in a year.
What is gross annual income?
Expenses that are based on wants and may be unnecessary spending, personal choice spending.
What is discretionary income?
A fixed amount of money paid on a regular basis to a permanent employee of an organization
What is salary?
The amount the policyholder must pay for expenses before the insurance company pays anything.
What is deductible?
What is foreclosure?
The take home pay a person has each month.
What is net income?
A policy on a home, car or person that helps when there is an emergency.
What is insurance?
When a person is paid by the hour and is only paid for the hours worked.
What are hourly wages?
When a person applies to the insurance company to pay for an issue for their car or at their home.
What is a claim?