personal finance thing

Purchase of something of value with the expectation that over time it will increase in value and or produce a profit

Investment

Property owned by a person or company, regarded as having value and available to meet debts

Asset

Income remaining after deduction of taxes and other mandatory expenses.

Discretionary Income

A plan listing the expenses and income of an individual or organization

Budget

Amounts removed from gross income to pay for taxes and other expenses

Withholdings

The effect that a change in an item's price has on consumer's ability to purchase goods and services

Income effect

An expense that can be subtracted from a taxpayer's gross income in order to reduce the amount of income that is subject to taxation

Deduction

Expense that does not change from month to month.

Fixed Expenses

Expenses that can change dramatically from month to month

Variable Expenses

Is something necessary to live and function

Economic Needs

Is something that can improve your quality of life

Economic Wants

Contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic paymen

Lease

A legal agreement in which a person borrows money for the purchase of a home

Mortgage

The monetary value of a property or business

Equity

To buy something on credit

Finance

The ability of a consumer to obtain goods or services before payment, based on the trust that payment will be made in the future

Credit

A sum of money due as one of several equal payments for something, spread over an agreed period of time

Installment

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.

Interest

The price you pay to borrow money or the cost you charge to lend money.

Consolidation

The act of combining several loans or liabilities into one by taking out a new loan to pay off the debts.

Credit Score

A number assigned to a person that indicates to lenders their capacity to repay a loan.

Assets

property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Credit Report

A statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts.

Installment

A sum of money due as one of several equal payments for something, spread over an agreed period of time.

Revolving Credit

Credit that is automatically renewed as debts are paid off.

Loan Principal

The initial size of a loan not including interest.

Mortgage

A loan typically used to buy a home or other piece of real estate, for which that property then serves as collateral.

Mortgage Rate

The rate of interest charged by a mortgage lender.

Home Equity

The actual property's current market value

Down Payment

An initial payment made when something is bought on credit.

Mortgage Insurance

An insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, passes away, or is otherwise unable to meet the contractual obligations of the mortgage.

Fixed Rate Mortgage

An installment loan that has a fixed interest rate for the entire term of the loan.

Adjustable Rate Mortgage

A home loan with an interest rate that adjusts over time based on the market.

Closing Costs

The expenses over and above the property's price that buyers and sellers usually incur to complete a real estate transaction.

Appraisal

An expert estimate of the value of something.

Mortgage Lender

A financial institution or organization that loans out money for real estate purchases

Operational Costs

The ongoing expenses incurred from the normal day-to-day of using a vehicle

Variable Costs

A cost that changes with increased use of a product.

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.

Depreciation

A reduction in the value of an asset with the passage of time, due in particular to wear and tear.

Annual Percentage Rate (APR)

The yearly interest generated by a sum that's charged to borrowers or paid to investors

Loan Term

The amount of time it takes to completely pay off your loan.

Liability Insurance

An insurance product that provides an insured party with protection against claims resulting from injuries and damage to other people or property.

Collision Insurance

A coverage that helps pay to repair or replace your car if it's damaged in an accident with another vehicle or object

Comprehensive Insurance

Helps cover the cost of damages to your vehicle when you're involved in an accident that's not caused by a collision.

Repossession

The term used to describe the taking back of property after a borrower has defaulted on payments.

Vehicle Lease

A financing agreement where people pay to drive a car, but they aren't taking out a loan to eventually own it.

Income Tax

Taxes paid by employees to federal and state government. Collected or withheld from one's paycheck.

Payroll Tax

Federal and state taxes that all employers must pay, based on a percentage of the employee's salary. They go to such things as Social Security and Medicare/Medicaid.

Corporate Income Tax

A percentage of profits paid by a business to the federal and state government.

Excise Tax

A tax paid on purchases of a specific good, like gasoline.

Estate Tax

A tax on property (cash, real estate, stock, or other assets) transferred from deceased persons to their heirs.

Social Security

A program that provides monthly benefits to almost 60 million Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals.

Medicare

A government-run insurance program that provides healthcare assistance to elderly Americans.

Medicaid

A government-run insurance program that provides healthcare assistance to poor Americans.

"Safety Net" Programs

A variety of government programs that benefit individuals and families with low incomes. These include food stamps, education assistance (grants and loans), housing vouchers, tax credits, job training, child care and more.

Mandatory Spending

Spending by the federal government required by previously existing laws. This includes funding programs like Social Security and Medicare/Medicaid.

Discretionary Spending

Spending by the federal government determined by legislative action. In other words, spending approved through votes by elected officials (i.e. Congress).

"Sin" Taxes

A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. These type of taxes are levied by governments to discourage individuals from partaking in such activities without making the use of the products illegal.

Cost of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare. Cost of living is often used when comparing how expensive it is to live in one city versus another.

Real Estate Tax

A tax assessed on real estate by the local government. The tax is usually based on the value of the property (including the land) you own.

Vehicle/Property Tax

Taxes usually assessed as a percentage of the value of items you own (cars, boats, etc.). They can fall under county or state taxes, depending on where you live. Not all states tax personal property, however, and what is subject to personal property tax varies widely from state to state.

Tax Rate

The percentage at which taxes are paid on a dollar of income.

Tax Bracket

A tax bracket is a range of income amounts that are taxed at a particular rate.

Progressive Tax System

A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. Basically, taxpayers are broken down into categories based on taxable income; the more one earns, the more taxes they will have to pay once they cross the benchmark cut-off points between the different tax bracket levels.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due. Taxable income is generally described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments that are allowable in that tax year.

Marginal Tax Rate

The tax bracket that your last dollar of income falls into, and therefore the highest tax rate you pay.

Effective Tax Rate

The actual rate you pay on your taxes, as a percentage of your overall income.

Filing Status

A category that defines the type of tax return form an individual will use. Closely tied to marital status, it determines the size of your tax brackets and how much of your income is taxed at each rate.

Standard Deduction

The standard deduction is a dollar amount that reduces your taxable income. It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on a 1040.

Exemption

An exemption is an amount of money you can subtract from your taxable income, just for having dependents. Personal and dependent exemptions for yourself and qualifying family members reduce the amount of income on which you will be taxed.

W-4

A form completed by an employee to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of tax to withhold from an employee's paycheck.

I-9

Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States.

W-2

Form that an employer must send to an employee and the IRS at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck.

1099

Form that details all "non-employee" compensation. This includes income for completing specific jobs, like freelancers or contractors who are effectively self-employed.

1040

The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.

1040-EZ

The 1040EZ is an alternative to the Internal Revenue Service's (IRS) 1040 income tax form and offers a faster and easier way to file taxes, meant for taxpayers with rudimentary tax situations. In order to be eligible to use this form, the individual must have a taxable income of less than $100,000, interest income of $1,500 or less, possess no dependents and fulfill other requirements set by the IRS.

Withholding

The portion of an employee's wages that is not included in his or her paycheck because it goes directly to federal, state and local tax authorities.

Allowances

Employee-claimed exemptions on the W-4 to determine how much of an employee's pay to subtract from his or her paycheck.

The more allowances you claim, the less income tax will be withheld from your paycheck. The fewer allowances you claim, the more income tax will be withheld from each paycheck.

Paycheck Stub

A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.

Interest Income

Income earned through interest in savings accounts, bonds, CDs, etc.

Capital Gains

Profits that an investor gains when he or she sells the capital asset (like a stock, or piece of property) for a price that is higher than the purchase price.

Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Personal Exemption

You are generally allowed one exemption for yourself. If you are married, you may be allowed one exemption for your spouse.

Dependent Exemption

You are allowed one exemption for each person you can claim as a dependent. You can claim an exemption for a dependent even if your dependent files a return.

Dependent

Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes. There are specific rules governing who qualifies, but generally they fall into two categories: a child or a relative.

Audit

An inspection of a filer's tax return by the IRS

I-9

Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States

the first step in making a budget

tracking your expenses

if you have any money left over in your budget

give it a specific purpose or goal

money received in a loan

principal

what is APR

the interest AND the fees, and a better credit score means lower rates

fixed pay

salary

An unexpected salary cut is an example of what

income deduction

marginal cost

it is no longer beneficial to buy In bulk

how do famous brand companies reach out to consumers

national advertisement

When should fixed and variable monthly budget expenses first be planned

at the start of each month