This document defines key money and finance terms including: - Credit is the ability to obtain goods/services before payment based on trust of future payment. - Debit removes money from an account, typically as payment. - Interest is money paid regularly for the use of borrowed money or delaying debt repayment. - Gross pay is all money earned before taxes while net pay is take-home pay after deductions. - Fixed expenses do not vary with production while variable expenses do vary. - Consumable goods are used up while durable goods can be kept for a period of time. - FICA taxes fund Social Security and Medicare programs.

1. Money Vocab
By: ReJon Barksdale

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.

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.

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

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.

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 /ˈfaɪkə/ 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 Expense
A discretionary expense is 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
DEFINITION of 'Financial Institution - FI' 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.