Personal Finance Vocabulary
How someone acts with money
The amount of money a person is paid from their job.
What is income?
Money that you get from stocks
Divident
When goods are bought now and paid for later.
What is credit?
A plan and record of spending.
What is a budget?
The formula for unit price
Total Price / Number of units
Something that you can buy to have partial ownership in a company.
Stock
Form that is given to employees that shows pay throughout the year, as well as taxes paid.
W-2 Form
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?
When you invest in multiple things, making it less likely that you lose money.
Diversification
A number that shows how well a person manages their money, a financial grade.
What is credit score?
Pay before taxes are taken out
Gross Pay
Expenses that change from month to month, like groceries or utilities.
What are variable expenses?
Money that is charged for borrowing money
Interest
What do the numbers mean in 50/30/20?
50% needs, 30% wants, 20% savings
Money that is paid to insurance companies every month to keep a policy.
Premium
This will help you find a job.
Resume
A policy on a home, car or person that helps when there is an emergency.
What is insurance?
The range for Credit Scores
300-850
The amount the policyholder must pay for expenses before the insurance company pays anything.
What is deductible?
The take home pay a person has each month.
What is net income?
Payment that is better for small, everyday items.
Credit
What two tax forms are represented within FICA?
What is Social Security & Medicare?
Insurance that can help with medical bills.
Health Insurance