Personal Finance Vocabulary Latest 2023 100% Correct

Personal Finance Vocabulary Latest 2023 100% Correct 401(k) a savings plan for retirement APR Annual Percentage Rate for interest paid on a card APY Annual Percentage Yeild describes interest paid to a savings account or certificate Assets what you own or have paid for ATM Automated Teller Machine where and individual can withdraw, deposit, or transfer money within their account Audit a process where accounts are rechecked for accuracy and completeness Balance the existing amount in an account Benefit something an employer offers an employee beyond salary (health coverage) Check a written order directig a bank to take money from your account and pay someone you have designated on the order Closing the final arranging of details for the sale of a house Co-pay a partial payment for the benefits or service (doctor visit) Co-sign to add your signature to a loan made by someone else, promising that you will repay if the other person does not Credit a transaction that adds to an account Credit Card a card that allows an individual to charge the cost of a purchase to a credit account (an instant loan) Credit Limit the amount of money a bank or credit card company is willing to loan you Credit Rating a report that tells you how well you repay your loans Debit a transaction that takes money from an account Debit Card a card that allows an individual to pay for a purchase with money electronically withdrawn from their account (similar effect as a check) Debt the sum of money or obligations you owe Deductible the amount that the indivual must pay before the insurance company pays its share Defaulting on a loan not repaying a loan as promised Donation money given to charity Down payment a percent of the purchase price of an expensive item that must be paid before a bank issues a loan Employee someone who is hired and works for someone else Employer someone who hires workers Endorsing a check writing your signature on the back of a check made out to you FICA Federal Insurance Contribution Act, also known as Social Security tax (payroll tax that supports a minimum living allowance in retirement) Fixed Income income that can't be increased Gross toatal pay before payroll taxes Incentive a reward or something positive that is generally used to encourage someone to do something Interest money paid by the bank for the use of your money, of paid by you for the use of bank money Interview a face-to-face meeting with someone who may hire you Ledger a book or chart that lists financial transactions; also called a register Liability Insurance insurance that protects individuals from lawsuits where they may have been at fault Loan a writtin agreement to repay borrowed money; also called a note Maintenance the cost of keeping something in working order Medicare federal insurance that pays for hospitalization for the elderly Minimun Hourly Wage a dollar amount per hour established by the government that defines the leastamount all employers must pay their employees Minimum Payment the least amount you may pay each month on a credit card charge account Mortgage a special loan that generally refers to money borrowed to buy a house Negotiating a Check cashing a check or depositing it into an account Net total pay minus payroll taxes Net Worth the value of your assets minus your debts Note another name for a loan Overtime time beyond your normal workweek that is sometimes paid at a higher rate Payroll taxes taken out of the pay before issuing the paycheck, including, federalincome tax, FICA, and Medicare Pension a percent of your salary paid after you ritire Percent a math term to describe a part of a whole; means per "100" Philanthropist an idividual who donates a lot of their money to charities Physical Damage Insurance insurance that covers fire, theft, and water damage PIN Number a secret number that an individual uses to identify themself at an ATM POS Point of Sale, where the person uses their debit card Post to record Principal the initial amount of a loan before interest charges Property Taxes taxes paid to the town or city based on the value of your house and land Retirement the period of time after you stop working; generally at age 65 Rubric a scoring sheet keyed to standards and used to evaluate work Salary a fixed amount paid for work, but often regards for hours worked Savings money set aside, generally in a bank or investments, which earns interest Take-Home another name for net pay Title Search a legal search of town records to be certain that the owner can can legally sell their house Transaction activity within an account, either a deposit, transfer, or withdrawal Used Car one that has been owned and used by someone else