Personal Finance Midterm Vocab

annuity

series of equal regular deposits

assets

owned items value, such as cash, real estate, personal possessions, investments

career

a commitment to work in a field that is found to be interesting and fulfilling

deficit

financial situation that occurs when more money is spent than received

down payment

portion of the total cost of an item that must be paid at the time of purchase

goals

the things one wants to accomplish

good

physical item that is produced and can be weighed or measured (IPhone, clothing, books, food)

interest

the price that is paid for the use of another’s money

internship

a position in which a person receives training by working with people who are experienced in a particular field

job

work done mainly to earn money

liabilities

debts that one owes

market value

the price at which property would sell

mission statement

a formal summary of the aims and values of a company, organization, or individual

networking

the action or process of interacting with others to exchange information and develop professional or social contacts

net worth

the difference between the amount you own and the debts you owe

pension plan

an employee benefit that commits the employer to make regular contributions to a pool of money that is set aside in order to fund payments made to eligible employees after they retire

principal

the original amount of money on deposit

resume

a document created and used by a person to present their background, skills, and accomplishments

service

a task a person or machine performs for you (salon, car wash, lawn mowing)

service contract

a business agreement between a contractor and customer covering the maintenance and servicing of equipment over a specified period

take home pay

amount of income left after taxes and other deductions are subtracted from gross pay

warranty

a written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time