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Personal Finance
| Definition | Term |
|---|---|
| Money earned as a percentage of a sale or service | Commission |
| Money received from work, investments, or other financial support | Income |
| The lowest wage permitted by law | Minimum Wage |
| House payment | Mortgage |
| Terms for one’s work-related financial earnings | Salary, Wage |
| A plan for spending and saving one’s income | Budget |
| Financial obligations, such as bills | Expenses |
| Money set aside for later use or in case of emergencies | Savings |
| A loan of money with the promise to pay it back later | Credit |
| A percentage of a borrowed sum of money which must be paid in addition to the repayment of the loan itself (can be good or bad) | Interest |
| An individual, bank, or company who loans money | Lender |
| Money which one has on-hand that can be freely spent | Liquid |
| A sum of money given for designated period of time which must be repaid | Loan |
| Money owed to another person or business | Debt |
| A card that allows you to borrow money from a lender with a promise to pay the money back later | Credit Card |
| A card that takes the money directly out of your banking account | Debit Card |
| Putting money aside for a purchase made between 0-2 years in the future (example: Bike) | Short-Term Savings |
| Putting money aside for a purchase made between 3-10 years in the future (example: College) | Medium-Term Savings |
| Putting money aside for a purchase made after 10 years in the future (example: Retirement) | Long-Term Savings |
| Money remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes | Disposable Income |
| To give money to a company or person in hopes of earning a profit. Risky and does not always work | Investing |
| costs that occur each period and the amounts do not change from one period to the next (e.g. rent or mortgage payment) | fixed expense |
| costs that occur each period and the amounts change from one period to the next (e.g. groceries) | variable expense |
| costs that do not occur on a consistent basis (e.g. car maintenance) | irregular expense |