Money Management Key Terms Money Management Paycheck Key

Money Management Key Terms

Money Management Paycheck Key Terms

Income • Money that you get; usually from a job; the amount of money that you receive

Deduction • An amount of money taken from an employee’s gross pay for taxes, insurance, social security, or other benefits

Income Tax • The part of earnings that people must legally give to the government to pay for government services

Check Stub • The part of the paycheck that lists deductions from salary

Gross Pay • The total amount of an employee’s earnings before deductions are taken out

Net Pay • The amount of a paycheck after deductions are taken out (sometimes referred to as take home pay)

Money Management Budgeting Key Terms

Expenses • Things you pay for each month with your income (Example: food, clothing); a good or service you purchase

Fixed Expenses • Expenses that are the same each month (Example: rent)

Variable Expenses • Expenses that are not the same each month, they fluctuate (Example: clothing)

Money Management Checking Key Terms

Checking Account • A bank account that you use with checks and/or debit card. Money is taken out of this account when you write a check or use your debit card.

Check • A written order directing the bank to pay money as instructed by you to take money out of your account

Endorse • To sign the back of a check before cashing; sign your name on the back

Ledger/Check Register • Your record of your account

Balance • Money available in your account

Bounced/Bad • A check written for more than the amount in your account

Deposit • A written order directing the bank to put money into your account

Withdraw • When you take money out of your savings or checking account

ATM • Automated Teller Machine; acts as a bank teller usually open 24 hours

Debit Card • Plastic card that accesses your account when the proper PIN (password) is given; money is taken directly out of your account

Savings Account • A bank account that you deposit money into; interest is earned on the money that is in the account.

Interest • Money a financial institution pays customers at regular intervals

Money Management Credit Key Terms

Credit Card • A plastic card allowing you to purchase merchandise with future money

Interest Rate • The cost/charge for the use of money over a period of time

Credit Score/Rating • A record that shows your ability/willingness to pay debts