This document defines key money and financial terms including credit, debit, interest, gross pay, net pay, fixed expenses, variable expenses, consumable goods, durable goods, FICA, salary, discretionary expenses, budget, credit score, financial institution, and mortgage. Credit allows customers to obtain goods before payment, while debit records amounts owed. Interest is the desire to learn, and gross pay is total salary before deductions. Net pay is take-home wages after taxes. Fixed expenses do not change, unlike variable expenses. Consumable goods are replaced, unlike durable goods. FICA requires tax withholding. A salary is regular payment. Discretionary expenses are non-essential. A budget estimates income/costs. Credit

1. Money Vocabulary
By: Eyonnah Ferguson

2. Credit
•Credit is 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
• Debit is an entry recording an amount owed, listed on the left-hand
side or column of an account.

4. Interest
•Interest is the state of wanting to
know or learn about something or
someone.

5. Gross Pay
• Gross pay is the total amount of money you get before taxes or other
deductions are subtracted from your salary.

6. Net Pay
• Estimates your net pay or "take home pay", which is wages after
withholdings and taxes. Calculation based on: Tax Year.

7. Fixed Expenses
• Fixed expenses or costs are those that do not fluctuate with changes
in production level or sales volume.

8. Variable Expenses
• A variable expense is a cost that changes significantly from period to
period, such as week to week, month to month, quarter to quarter or
from year to year.

9. Consumable Goods
• Consumable goods are items which are intended to be bought, used,
and then replaced.

10. Durable Goods
• Nondurable goods or soft goods (consumables) are the opposite of
durable goods.

11. FICA
• The Federal Insurance Contributions Act (FICA) is the federal law
that requires you to withhold three separate taxes from the wages
you pay your employees

12. Salary
• Salary is 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 discretionary expense is a cost which is not essential for the
operation of a home or a business.

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

15. Credit Score
• Credit Score is a number assigned to a person that indicates to
lenders their capacity to repay a loan.

16. Financial Institution
• Financial Institution is an establishment that focuses on dealing with
financial transactions, such as investments, loans and deposits.

17. Mortgage
• Mortgage is 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.