Money vocabulary

Money Vocabulary

Credit

ability of a customer to obtain goods or services before payment

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

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

Gross Paythe term used to describe all of the money you've made while working at your job, figured before any deductions are taken for state and federal taxes, Social Security and health insurance

Net Paythe amount of wages that employees actually take home

Fixed Expensesthose that do not fluctuate with changes in production level or sales volume.

Variable EXpensescorporate expense that varies with production output

Consumable Goodsgoods are capable of being consumed; that may be destroyed, dissipated, wasted, or spent.

Durable Goodsgoods not for immediate consumption and able to be kept for a period of time

FICAFederal Insurance Contributions Act tax imposed on both employees and employers to fund Social Security and Medicare

Salaryfixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee

Discretionary Expensesa cost which is not essential for the operation of a home or a business.

Budgetestimate of income and expenditure for a set period of time

Credit Scorenumber assigned to a person that indicates to lenders their capacity to repay a loan.

Financial InstitutionAn establishment that focuses on dealing with financial transactions, such as investments, loans and deposits.

Mortgagethe charging of real (or personal) property by a debtor to a creditor as security for a debt