the total amount of income from wages before any payroll deductions
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Disposable (Net) Income
The amount of income left to an individual after taxes have been paid, that is available for spending and saving. It is income that can be saved or spent on goods and services wanted, not needed.
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Essential Expenses
expenses that we incur that we have to pay to live, such as the power bill, water bill, food, medicine
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discretionary expenses
Any expenses that are not considered essential to the household or business. Examples include movie tickets, eating out, expensive clothes, and video games.
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Mean
average
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Median
Middle number
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Mode
most frequently occurring score
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range
the difference between the highest and lowest scores in a distribution
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Percentile
A ratio that compares a number to 100
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Dispersion
the pattern of spacing among individuals within the boundaries of the population
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normal distribution
a bell-shaped curve, describing the spread of a characteristic throughout a population
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checking account
An account at a bank that allows a customer to deposit money, make withdrawals, and make transfers from the funds on deposit using a paper check or electronic transfer.
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Check
A written order used to tell a bank to pay money (transfer funds) from an account to the check holder.
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Payee
The receiver of funds.
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Direct deposit
Payroll or other types of check that are directly and electronically deposited into a bank account.
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Debit card
a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.
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ATM
A machine that allows individuals to complete certain transactions from the machine without human assistance.
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PIN
A numerical password that allows access to an ATM.
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Hold
The money in a bank account that is not released until the issuing bank of a check pays for the check.
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Endorse
The act of signing the back of a check when cashing it.
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Canceled
A check that has been processed so that the money is paid to the payee of a check.
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Insufficient Funds
When an account does not have enough money to cover a check that has been issued against it.
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Overdraft Protection
This protections pays a check even though there are not enough funds in the account; There is a fee for this service and the money must be repaid.
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Maintenance fee
A fee that some banks charge to provide access to checking or savings accounts.
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Interest
A percentage of the money that is an account that a bank pays on some accounts.
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Single Account
An account that has just one owner who is able to make account transactions.
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Joint Account
An account with more than one owner; all the owners have equal access.
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Starting Balance
The amount of money in a checking account at the beginning of a statement period.
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Ending Balance
The amount of money in a checking account at the end of a statement period.
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Outstanding deposits
Deposits that not appear on the bank statement.
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Outstanding checks
checks that have not been deducted from the bank statement balance.
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Reconciling
The process of verifying the bank's records to make sure no errors have been made
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savings account
An account at a depository institution that is designed to hold money not spent on current consumption
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Interest rate
Percentage of amount borrowed to be added to the amount loaned and paid back
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Principal
The amount of money borrowed
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Minimum Balance
the lowest amount that can be kept in a checking account before you have to pay a fee
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APR
Annual percentage rate; the annual rate of interest that is charged for using credit
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Compound interest
Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually
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APY
Annual Percentage Yield; describes interest paid to a saving account or certificate
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Credit
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
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Debtor
A person who owes money
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Creditor
A person to whom money is owed
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Asset
Anything of value that is owned
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Credit rating
an estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings.
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FICO score
Credit score from 300-850 that rates how likely a person is to fall 90 days behind in a payment.
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Installment plan
A payment plan that allows customers to make payments at set intervals over a period of time until the total debt is paid
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Cosigner
Someone who promises to pay if the borrower fails to pay
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Wage garnishment
An involuntary form of wage assignment, often done by court order.
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Balloon payment
a final loan payment that is much larger than the regular monthly payments
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FASFA
Free Application for Federal Student Aid; determines how much financial aid a student may receive.
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Federal loan
Money given to students from the federal government that needs to be repaid.
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Private loan
Money borrowed from a private financial institution, such as a bank.
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Monthly payment
This is the payment that the mortgagee or borrower will be required to pay each month until the loan has been paid off completely according to the terms agreed upon between the borrower and lender.
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Credit card
A plastic card used to make purchases now and pay for them later.
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Impulse buying
purchasing items on the spur of the moment
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Billing cycle
time period during which you must make your monthly payment
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Credit card statement
A detailed list of transactions, fees, payments, and balance figures for a credit card
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Credit line
The maximum dollar amount that can be charged on a specific credit card account.
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Available credit
the preset amount of credit available on a credit card
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Previous balance
Amount still owed from purchases prior to the current 30-day charge cycle.
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Finance charge
the total dollar amount of all interest and fees you pay for the use of credit
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Late charge
The penalty for late payments from a previous month.
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Minimum payment
The smallest required payment that a credit card holder can pay on a monthly bill
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Average daily balance
The average amount owed per day during the billing cycle.
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Credit calendar
A calendar method of finding the average daily balance of a credit card.
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Kelly Blue Book
a reference book listing the prices of used cars
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Liable
legally responsible
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Negligent
not properly attentive
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Automobile insurance
Provides payments for both liability and property insurance on a vehicle
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Premium
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
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Claim
when a report is filed with an insurance company so that the insured party may be compensated for the damages
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Liability Insurance
insurance that provides protection from claims arising from injuries or damage to other people or property
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Deductible
Amount you must pay before you begin receiving any benefits from your insurance company
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Flashcard (34)