Credit is the ability to obtain goods or services before payment based on trust of future payment. Net pay is the amount employees take home after deductions from gross pay. Variable expenses fluctuate with production levels, unlike fixed expenses like rent.

1. Money Vocab
By: Brandon Kondis

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
• An amount of pay, wages, salary, or other compensation before
deductions, such as for taxes, insurance, and retirement.

6. Net Pay
• 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 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 Institution
• An 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.