Unit 1 Personal Finance
base
in 10 4, 10 is the base; it is the number to be used as a factor
biweekly
every two weeks
capacity
amount a container holds
commission
an earning equal to a certain percentage of sales
deduction
amount withheld from pay according to government regulations, or the direction of the employee
English system
the foot and pound system of measurement
exemption
tax rate depends on income, standard deductions, and number of exemptions claimed
exponent
in 10 4, 4 is the exponent; it is the number of times the base is to be used as a factor
gross pay
total pay before deductions
linear measurement
system used to find the dimensions such as height, length, and width of objects and things
metric system
decimal system of weights and measures based on the meter and kilogram
minimum wage
pay rate set by a minimum specified in the Fair Labor Standards Act
net pay
gross pay minus deductions
part-time
less than 40 hours per week
pay period
a time period in which income is earned
pension
a retirement plan provided by the employer
percent
per hundred, out of every hundred, or hundredths
piecework
a payment based on actual production
reciprocal
a fraction whose numerator is the denominator of another fraction and whose denominator is the numerator
repeating decimal
decimal that has a pattern of numbers that repeat
salary
a payment based on a time period
semimonthly
twice a month
take-home pay
gross pay minus deductions (same as net pay)
terminating decimal
has no remainder, or has zero as the last place order
time clock
used by companies to make a record of when employees arrive and when they leave
tip
something given voluntarily or beyond obligation usually for some service, also known as a gratuity
volume
capacity or amount occupied by a 3-dimensional object
wage
payment based on actual working time or actual production
weight
how heavy something is
Unit 2 Taxes and Insurance
annually
once a year
beneficiary
survivor to whom the benefits are paid upon the death of an insured person
benefit
amount paid to a survivor upon the death of an insured person
face value
amount of a policy stated on the insurance policy
insured
person covered by the insurance
premium
amount of money paid for insurance
quarterly
four times a year, or every three months
semiannually
twice a year, or every six months
taxes
what the government levies upon us to obtain the money needed to operate
Unit 3 Banking Services & Investments
adjusted balance
balance after adding the outstanding deposits and subtracts the outstanding checks to the balance on the statement
ATM
Automatic (or Automated) Teller Machine: permits the customer to make transactions by using a special computer terminal
bank
service institutions set up to provide businesses and individuals basic financial services
bank account
a formal banking relationship established to provide for financial transactions
bank balance
net funds in bank account
bond
like loaning money to the company for interest
certificate of deposit (CD)
a sum on deposit usually for a given period of time at a fixed interest rate
certified check
item that will be accepted even when your personal check will not, because it is guaranteed by the bank itself
checking account
account allows you to write an instruction to the bank, as a check, to make a payment from that account
club account
accounts are set up to save for specific purchases
compound interest
interest figured on the amount of money in the savings account plus the amount of interest already earned
debit card
can be used like a credit card, but money is deducted directly from bank account
demand deposit
checking account
direct deposit
funds are deposited directly/electronically usually for payroll or pension payment
discount
if the bond sells for less than face value
dividend
a share of money earned as profits by a company and distributed to its stockholders
estate planning
planning for the distribution of one's estate after death
face value
the amount of money lent
financial services
services related to the management of money, investments, or credit
interest
the fee a bank pays you to keep your money
intestate
without a will
investment
a commitment of money in order to gain a financial return
living trust
a trust established while the owner of the trust is still alive
load
fee that the fund charges when shares are purchased
loading rate
determines sales and transactions fees
mutual fund
investment instrument in which you purchase a part of a collection of investments
net asset value
assets minus liabilities
no load
fund that does not have a fee
online banking
with a computer and appropriate software it is possible to do most banking transactions from home
outstanding checks
any checks in his register that have not been cleared through the bank
passbook account
bank issues a book in which the balance, interest, and deposits are recorded for each transaction
PIN
Personal Identification Number
portfolio
the collection of investments in the mutual fund
premium
if the bond sells for more than face value
reconciling statements
make sure the check register and bank statement agree
safety deposit box
a safe, protected place to keep important papers, valuable documents, and even valuable jewelry
savings account
accounts enable you to earn interest for money you place, or deposit, in the bank
share
percentage ownership in the mutual fund
simple interest
interest figured only on the amount of money in the savings account
statement period
time period covered by bank statement
statement savings
bank issues a monthly statement detailing your transactions
stocks
a share in the ownership of a company
term
length of time of the bond
traveler's checks
highly acceptable, easily cashed checks that you can use in places even when you are not known
trust
an estate, or other property or money, given to a person or institution to manage
will
document that specifies how one desires his estate to be distributed upon his death
yield
the annual interest Ă· cost
Unit 4 Banking and Credit Costs
APR
Annual Percentage Rate
average daily balance
average amount owed for each day of the billing period
balloon payment
large payment due at the end of the loan period
carrying charges
excess amount paid over the cash price
closing costs
fees associated with taking out a mortgage
credit
based on the belief a person will pay his obligations
credit card
financial instrument that allows you to take out a loan from the credit card company to make purchases
discount loan
loan in which the interest is paid in advance from the sum advanced
down payment
initial cash payment
finance charge
price paid to use someone else's money to make purchases
finite
has a beginning and an end
fixed rate
interest rate that does not change
infinite
has no ending
interest
fee charged for delaying payment
interest rates
percentage charged for a unit of time
loan
to lend a sum of money at interest
LTV
Loan To Value
mortgage
a loan based on the value of the real estate it is used to purchase
natural numbers
the positive integers
overdraft
a check which cannot be covered by funds in the account
overdraft protection
the bank will loan the customer the money needed to cover an overdraft check
prepayment penalties
fees required if loan is paid off before the end of its original term
previous balance
total amount owed on the account at the end of the previous billing cycle
proceeds
amount of money received when money is borrowed
progression
a sequence or a series, i.e., an arrangement of quantities, or summation of quantities, whose positions are based upon the natural numbers
sequence
an arrangement of quantities whose positions are based upon the natural numbers
series
a summation of quantities based upon a sequence
unpaid balance
amount owed on the account after payments and credits have been subtracted from the previous balance
variable rate
interest rate tied to an index that may change