BEC financial capability

dividends

payment received for owning shares

salary

fixed income calculated on a yearly basis

rent

payment for the use of property or land

commission

a percentage earned on the sales price

wages

income calculated on an hourly basis

fees

payment in return for services

advantage of wages

you can earn extra for working overtime

disadvantages of wages

you have to work much more for good pay

advantage of salaries

set amount each fortnight for a stable income and you still get paid if you’re sick

disadvantages of salaries

you don’t get paid more for working overtime

advantages of fees

still get paid for the time booked even if the appointment doesn’t take the entire time

disadvantages of fees

you don’t get paid if you have no customers

sales commission advantage

you can earn a lot if you sell a lot

sales commission disadvantage

you dont get paid if you dont sell anything

gross income

the income you earn before income tax has been subtracted

net income

the income you have after income tax has been deducted, sometimes called your disposable income

everyday account

gives you easy access to your money, usually some fees to pay and no or low interest is paid

savings account

you receive interest and the fewer withdrawals you make, the more interest you earn. you may be charged if you make more than one withdrawal per month

term deposit

a type of savings account where the amount of savings is held for a fixed term at a specific interest rate. term deposits earn higher rates of interest so it is good if you dont want to make any withdrawals for some time

capital gains

the profit an investor earns from selling their shares at a price higher than the buying price

budget

an estimate of income and expenditure for a set period of time

credit rating

an estimate of the ability of a person to pay back money they owe

deposit

a sum payable as a first instalment on the purchase of something

income

money received, especially on a regular basis, for work or through investments

income tax

an amount of money that a government requires people to pay according to their income

interest

money paid regularly at a particular rate for the use of money lent

investments

putting money into financial schemes, shares or property with the expectation of achieving a profit

loan

money that is borrowed where it is expected that it will be paid back, along with interest

mean

the average of a set of numbers

median

the middle value in a set of numbers

mode

the number appearing most often in a set of numbers

range

the difference between the highest and the lowest values in a set of numbers

savings

the money that is left over after paying expenses

shareholder

an owner of shares in a company

shares

a portion of a company that a person can buy