Introduction to Business Personal Finance Terms – Flashcards
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Personal Finance
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A plan for how to spend/save/invest your money
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Needs
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Things that are required in order to live
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Wants
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Those things which make our lives more comfortable but are not needed for survival
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Budgeting
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The process of projecting, organizing, monitoring, and controlling future income and expenses.
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Career
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The occupation or work chosen for your professional life
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Resume
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A summary of your academic and work history
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Bank
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A financial institution that accepts deposits and channels the money into lending activities
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Credit Union
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Nonprofit service cooperative that is owned by its members which accepts deposits, makes loans, and provides other financial services
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Automated Teller Machine
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A computer terminal that allows a withdrawal of cash from an account
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Debit Card
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A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
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Savings Account
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A bank account that accumulates interest
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Check
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A written order directing a Bank or Credit Union to pay money
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Deposit
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Money put into a bank account
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Federal Tax
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A payroll deduction collected by employers by law and sent to the federal government to support governmental programs
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State Tax
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Tax paid to the state government, taken directly out of people's paychecks
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Income
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Money received from working, business, or property
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Net Income
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The income a person has left after taxes are deducted
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Gross Income
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The total amount of income from wages before any payroll deductions
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Tax Deductions
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Expenses subtracted from gross income before figuring a person's net income
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Social Security Tax
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A federal tax paid for old-age, survivors, and disability insurance
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Credit Card
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A plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit
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Identity Theft
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The crime of obtaining someone else's personal data and using it for financial gain or to defraud or deceive
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Insurance
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Promise of reimbursement in the case of loss
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Stock
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A certificate documenting the shareholder's ownership in the corporation
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Bond
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A certificate of debt (usually interest-bearing or discounted) that is issued by a government or corporation in order to raise money
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Mutual Fund
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Fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
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Certificate of Deposit
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Is a time deposit that requires you to leave your money in a financial institution for a set amount of time
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Retirement
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The state of no longer working.
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Individual Retirement Account
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Type of retirement account that an individual can establish with a bank, an insurance company, or a brokerage firm
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401K
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A form of retirement fund that an employee to contributes directly through a deduction from their paycheck.
