Personal Financial Literacy (5)

Check

official preprinted note from the bank that gives permission to pay for a purchase once you fill it out

Cash

bills or coins used to pay for goods and services

Credit Card

a card you can use to buy now and pay later

Debit Card

a card you can pay with that immediately deducts money from your bank account

Deduction

money being taken out or subtracted usually because of taxes

income tax

a tax on the amount of money you earn

payroll tax

a tax that an employer takes from a worker's paycheck (used for medicare, retirement, social security)

sales tax

a tax added to the cost of items and services

property tax

a tax on the value of items like cars, houses, boats, or land

gross income

total income earned before taxes or deductions are taken out

net income

income you actually get after taxes or deductions are taken out

budget

a plan to manage income and expenses

balanced budget

income equals expenses

income

money you earn or recieve

expenses

money that is used either by sharing, saving, or spending

fixed expenses

required (taxes)

variable expenses

you control and change (spending money on clothes, going to the movies, eating out)

deposit

money put into a bank account

withdrawal

money taken out of a bank account

interest

extra money you pay because you borrowed money from the bank (usually to pay off big items like college, cars, houses)