money vocab

1. MONEY
$
VOCABULARY
C E C I L Y D U N L A P

2. 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.

3. DEBIT
• an entry recording an amount owed, listed on the left-hand
side or column of an account.

4. INTEREST
• money paid regularly at a particular rate for the use of money
lent, or for delaying the repayment of a debt.

5. GROSS PAY
• the total amount of money you get before taxes or other
deductions are subtracted from your salary

6. NET PAY
• the amount of wages that employees actually take home

7. FIXED EXPENSES
• costs are those that do not fluctuate with changes in
production level or sales volume

8. VARIABLE EXPENSES
• A corporate expense that varies with production output.

9. CONSUMABLE GOODS
• goods that, according to the 1913 edition of Webster's
Dictionary, are capable of being consumed; that may be
destroyed, dissipated, wasted, or spent.

10. DURABLE GOODS
• AKA soft goods (consumables) are the opposite of durable
goods. They may be defined either as goods that are
immediately consumed in one use or ones that have a
lifespan of less than 3 years.

11. FICA
• he federal law that requires you to withhold three separate
taxes from the wages you pay your employees.

12. SALARY
• a fixed regular payment, typically paid on a monthly or
biweekly basis but often expressed as an annual sum, made
by an employer to an employee, especially a professional or
white-collar worker.

13. DISCRETIONARY EXPENSES
• a cost which is not essential for the operation of a home or a
business

14. BUDGET
• an estimate of income and expenditure for a set period of
time.

15. CREDIT SCORE
• a number assigned to a person that indicates to lenders their
capacity to repay a loan.

16. FINANCIAL INSTITUTION
• An establishment that focuses on dealing with financial
transactions, such as investments, loans and deposits.

17. MORTGAGE
• the charging of real (or personal) property by a debtor to a
creditor as security for a debt (especially one incurred by the
purchase of the property), on the condition that it shall be
returned on payment of the debt within a certain period.