Unit 03: Financial Literacy Vocabulary

Available BalanceThe amount available in an account for a person,

business, or organization to spend. How much cash do you have in the bank to spend?

BalanceTo make sure you spend no more than you earn, you reconcile your budget.

BudgetA monthly or yearly spending and savings plan for an individual, family, business, or organization.

CheckA written document telling the bank to pay a specific amount of money from your account to a specific person or organization.

Credit CardA card that can be used to borrow money from financial institutions, stores, or other businesses in order to buy products and services on credit.

Debit CardsA card that is linked to your checking account so that pa person can withdraw money, make deposits, or make purchases at a store.

Electronic payment

(e-payment)Payments using the security features on the Internet.

ExpensesPayments for goods and services.

Financial recordsA formal record of the transactions made by a

person, business, or other organization.

IncomeMoney earned or received.

Income TaxMoney paid on the earned wages of an individual or business for the federal and/or state governments as required by law.

Net IncomeThe income that remains

after taxes and other deductions are taken from an individual’s gross income.

The total amount of personal income prior to taxes and deductions. How much you earn from your job.

Gross IncomeDeductions

Money you have to pay to the government.

TaxesHealth insurance

MedicareSocial Security

Payroll taxThe amount of money that a company withholds from its employees for the federal government as required by law.

Property TaxThe amount of money collected on the value of a property for a local government as required by law.

RegisterA small table to track deposits added to account, expenses withdrawn from account, and current available balance.

Sales TaxThe amount of money collected by a store (retailer) in addition to a good or service that was purchased, for the local government as required by law.

transACTIONA specific time or instance when money changes hands.