Finance test

Wealth

The total value of what a person owns (assets) minus what they owe (debts).

Surplus

Having money left over after paying expenses.

Deficit

Spending more money than you earn.

Gig Economy

A type of world where people earn money by completing short term jobs,tasks or projects instead of having a traditional full-time job.

Freelancer

A person who works for themselves and earns money by completing projects or jobs for different clients instead of working for one employer

unit price

The cost of one item or one unit of something and it helps you compare prices and find the best deal.

cost of living

The amount of money needed to pay for basic expenses like housing,food,transportation, and other necessities in a specific area

50/20/30 rule

A budging guideline: 50% needs, 20% savings and 30% wants

variable expense

A expense that changes from month to month like groceries,gas or entertainment

fixed expense

A cost that usually stays the same amount and must be paid regularly

wants

Expenses that help you live more comfortably (extras or upgrades)

needs

Expenses that are essential for you to be able to live and function

expenses

Money you spend

deduction

Money taken out of your paycheck before you receive your final pay (net pay)

net income

Money you take more after taxes and deductions are taken out of your paycheck

gross income

Money earned before taxes and other deductions are taken out of your paycheck.

wage

Money earned by a person for the work they do,usually based on the number of hours worked.

salary

A fixed amount of money a person earns from a job,usually paid weekly,biweekly or monthly.

income

Money you receive from a job or another source 

budget

A plan for how you will earn,spend and save money