Question | Answer |
Income | What a person earns.
E.g. Salary, Wages, Interest |
Commission | Percentage of a sales price received by a saleserson |
Dividend | Return on a share |
Fee | Money received for services completed |
Overtime | Work completed outside regular hours |
Rent | Payment for use of another person's building or land |
Wage | Amount paid to an employee on an hourly rate |
Salary | Amount paid to an employee on an annual rate |
Social Welfare Payment | Amount paid by the government to someone in need |
Superannuation | Saving for retirement |
Saving | Income not spent |
Fixed Expenses | Spending that occurs on a regular basis |
Variable Expenses | Spending that occurs on an irregular basis |
Impulse Buying | Buying something without thinking about the need for it |
Net Income | Income after tax has been deducted |
Interest | Cost of borrowing/return on a deposit |
Cash Purchase | Buy now, pay now |
Credit Purchase | Buy a good or service now and pay later |
Guarantor | Someone who guarantees to repay a loan if the borrower does not |
Secured Loan | Something deposited as a guarantee to fulfil the payment of a loan.
E.g. Deposit |
Unsecured Loan | Nothing is deposited as a guarantee to fulfil the payment of a loan.
E.g. No Deposit |
Budget | A plan of income and expenditure |
Budget Surplus | Planned income is greater than planned expenses |
Budget Deficit | Planned income is less than planned expenses |
Investment | Putting money into something to make a return
E.g. Buying shares |
Equities | Shares/stocks held by an individual |
Portfolio | The range of shares/stocks held |
Term Deposit | Money saved for a set interest rate over a set period |
Bonds | An I.O.U. issued by the government for a fixed interest rate |
Share | A unit of ownership in a company |
Managed Fund | An investment pooled with others to earn a return |
Kiwi Saver | A government programme to encourage savings by NZ |
Commodity Trading | Natural resources that are bought and sold to earn a return |
Foreign Exchange Trading | Buying and selling currencies to earn a return |
Investment (Eco) | Purchase of new capital goods
E.g. Tractor for a farmer |
Investment (Finance) | Making a profit from a 'deposit'
E.g. Buying shares in Warehouse |
Inflation | An increase in the overall price level |