money vocabulary

1. Money Vocabulary
BY MATTHEW LEISSES

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
(of a bank or other financial
organization) remove (an
amount of money) from a
customer's account, typically as
payment for services or goods

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
Gross salary is the term used to
describe all of the money
you've made while working at
your job, figured before any
deductions are taken for state
and federal taxes, Social
Security and health insurance. If
you work more than one job,
you'll have a gross salary
amount for each one.

6. Net Pay
Net pay is the amount of wages that
employees actually take home. In other
words, net pay is the amount of money
on each employee paycheck. Employers
deduct many different amounts from
employee wages every pay period.

7. Fixed Expenses
Fixed expenses or costs are
those that do not fluctuate with
changes in production level or
sales volume. They include such
expenses as rent, insurance,
dues and subscriptions,
equipment leases, payments on
loans, depreciation,
management salaries, and
advertising.

8. Variable Expenses
Variable costs are those costs that
vary depending on a company's
production volume; they rise as
production increases and fall as
production decreases. Variable
costs differ from fixed costs such as
rent, advertising, insurance and
office supplies, which tend to
remain the same regardless of
production output

9. Consumable Goods
Consumables (also known as
consumable goods, nondurable
goods, or soft goods) are
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
goods not for immediate
consumption and able to be
kept for a period of time.

11. FICA
Federal Insurance Contributions Act
(FICA) tax is a United States federal
payroll (or employment) tax
imposed on both employees and
employers to fund Social Security
and Medicare—federal programs
that provide benefits for retirees,
the disabled, and children of
deceased workers.

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 discretionary expense is a
cost which is not essential for
the operation of a home or a
business. For example, a
business may allow employees
to charge certain meal and
entertainment costs to the
company in order to promote
goodwill with employees.

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 Institute
establishment that focuses on dealing
with financial transactions, such as
investments, loans and deposits.
Conventionally, financial institutions are
composed of organizations such as
banks, trust companies, insurance
companies and investment dealers.

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