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Unit 1: Finance
Term | Definition |
---|---|
income | Money that you earn from working or gain from investments. Can include salaries, wages, interests and dividends. |
mortgage | house payment |
lender | an individual, bank, or company who loans money |
wage, salary | terms for one's work-related financial earnings |
budget | a plan for spending and saving one's income |
expenses | financial obligations, such as bills; money you spend on a good or service. |
savings | Money that is set aside for later use, often for a large purchase or an emergency. |
debt | the money borrowed (but has not been repaid) from when you have spent more than you have; the state of owing money |
credit | Buying something now and paying for it (plus interest) later; a loan. |
Credit Card | a small plastic card issued by a bank, allowing a person to purchase goods or services on credit |
loan | a sum of money given for designated period of time which must be repaid |
Savings Account | A bank account used to set aside money for future use. Has a slightly higher interest rate. More difficult to access. |
Investing | Putting money to use in something that offers potentially profitable returns. When you use money to make money! |
Checking Account | An account used to pay for day to day items. |
Debit Card | Plastic card used to access money in a checking account. Money for the purchase is immediately transferred from your account to the seller. |
Personal Finance | how you manage your money |
Spending | Trading money in exchange for goods or services. |
Interest | A fee paid for the use of borrowing money. The cost of borrowing money. |
commission | money earned as a percentage of a sale or service |
minimum wage | the lowest wage permitted by law; in the U.S., $7.25 an hour |