Money VocabularyEric Walker

Credit

• the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

Debit

• an entry recording an amount owed, listed on the left-hand side or column of an account

Interest

• the state of wanting to know or learn about something or someone

Gross Pay

• The total of an regular remuneration including allowances, overtime pay, commissions, and bonuses, and any other amounts, before any deductions are made

Net Pay

• The remaining amount of an employees gross pay after deductions, such as taxes and retirement contributions, are made.

Fixed Expenses

• Largely same as fixed costs, except that non-cash items such as depreciation and depletion are not included.

Variable Expenses

• costs that change in proportion to the good or service that a business produces.

Consumable Goods

• Consumables are goods that are capable of being consumed; that may be destroyed, dissipated, wasted, or spent.

Durable Goods

• goods not for immediate consumption and able to be kept for a period of time.

FICA

• Federal Insurance Contributions Act

Salary

• fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker

Discretionary expenses

• A discretionary expense is a cost which is not essential for the operation of a home or a business.

Budget

• an estimate of income and expenditure for a set period of time

Credit Score

• a number assigned to a person that indicates to lenders their capacity to repay a loan.

Financial Institution

• an organization, e.g. a bank or brokerage, that offers financial services such as deposit taking, checking accounts, loans, or various investment services

Interest

• the state of wanting to know or learn about something or someone

Salary

• a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker

Mortgage

• the charging of real (or personal) property by a debtor to a creditor as security for a debt (especially one incurred by the purchase of the property), on the condition that it shall be returned on payment of the debt within a certain period