Money VOCABBen Methvin

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. The opposite of credit.

Interest

money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt

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 employee's 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 expenses that change with changes in either sales volume or sales

revenue, in contrast to fixed expenses that remain the same over the short run and do not fluctuate in response to changes in sales volume or sales revenue

Consumable Goodsable or meant to be consumed, as by eating, drinking, or using:

Durable Goods

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

FICA

Federal Insurance Contributions Act (FICA) tax is a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

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

Discretionary expenses

A recurring or non-recurring expense for goods and services which are either non-essential or more expensive than necessary. Examples include entertainment expenses and gourmet meals.

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

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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.

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