Financial Algebra Vocab

Final exam review

Mean

Average

Mode

Most often number

Median

Middle number

Liability

Responsible for damages caused

Personal Injury Protection

An added type of insurance coverage mandatory in some states, that pays for any physical injuries that the driver or the passengers sustain while in the vehicle, even if there is no traffic accident; sometimes called no-fault insurance.

Property Damage Insurance

Coverage that pays for damage a driver causes to another person’s property.

Uninsured Insurance

Coverage that pays for injuries to a driver or passengers caused by a driver who has no insurance or does not have enough insurance to cover the medical losses.

Collision Insurance

Pays for damage to the insured vehicle caused by collision with another motor vehicle or an object such as a telephone pole.

Annual Premium

The amount you pay each year for insurance coverage.

Depreciation

The decrease in value over time.

Employment Agency

A business that has lists of job openings.

Benefits

Additional compensation from your employer, can include: health and dental insurance, child care, retirement, and travel expenses.

Double time

Two times your hourly rate.

Gross Pay

The sum of your hourly pay and overtime pay.

Weekly

52 paychecks per year.

Bi-Weekly

26 paychecks per year.

Commission

A method of payment where an employee receives a percentage of the amount of sales produced by that employee.

Pension

A type of retirement plan where an employee receives compensation from an employer after retirement.

Family health care

A type of health insurance that covers all members of the immediate family for health care bills to the extent outlined in the health care coverage plan.

Net pay

The amount of money a worker takes home after deductions.

Form W-2

A form used to report the withholding data; a wage and tax statement given to employees to compute federal, state, and local income taxes.

Pay stub

A list of wages and the amounts deduced from a paycheck that can be detached from the actual paycheck.

Standard deduction

An allowable reduction on income tax forms that is based on the filing status; these amounts are set by the government and may change from year to year.

Itemize

When deductions are listed on an income tax form.

Schedule B-Interest and Dividend Income

A form used to report interest income and income from dividends.

Tax Avoidance

When a taxpayer uses a tax rule to lower the amount of tax due.

Escrow

The money the bank collects for borrowers, for insurance and property taxes; the bank pays those bills for the homeowner when they are due.

Title

The legal claim of property ownership.

Equity

The amount of the home that an owner actually owns.