Personal Finance Unit 1: Take Charge of Your Financial Well-Being

Paper paycheck

A check written to a worker in the amount of money earned

Social Security

A federal government program that funds retirement accounts, financially supports citizens who have experienced profound disability, the premature death of a parent (if under the age of 18), or the premature death of a spouse in a family with children

Medicare

A federal program whose main purpose is to help pay for health care for those over 65

Commission

A fee that a salesperson receives upon completion of a sale

Value

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual

Short-term goals

A goal that will be attained in less than one year

Long-term goals

A goal that will be attained in more than one year

Dependent

A person who relies on the taxpayer for financial support

Payroll card

A reloadable debit card onto which a worker's pay is loaded

Unemployment insurance

A source of income for workers who have lost their jobs through no fault of their own

Workers compensation

A state-sponsored system that pays monetary benefits to workers who become injured or disabled on the job

Employment

Agreement between an employer and employee

Gross income

Amount of money earned before payroll taxes

Net income

Amount of money left once all deductions have been taken from gross income

Automated teller machine (ATM)

An automated teller machine (ATM) is an electronic banking outlet, which allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs

Earned income

Any income (wages/salary) that is generated by working

Depository Institution

Colloquially, a depository institution is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers.

Contactless Payment

Contactless payment is a secure method for consumers to purchase products or services via debit, credit or smartcards (also known as chip cards), by using RFID technology or near-field communication (NFC).

Salary

Fixed amount of money or compensation paid to an employee by an employer in return for work performed

Trade-off

Giving up one thing for another

Needs

Goods and services that are required for survival

Unearned income

Income received from sources other than employment

Financial planning

Managing money continuously through life in order to reach your financial goals

Mobile banking

Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM.

Pay stub

Outlines the deductions made to wages

Employee benefits

Products or services provided by an employer that provide extra value beyond wages

Goal

Something a person intends to acquire, achieve, or accomplish in the future

Financial goals

Specific objectives that are accomplished through financial planning

Income tax

Taxes paid to federal, state and local governments on the amount of money earned

Payroll tax

Taxes withheld or paid on your behalf by your employer

Employer contributions

The amount the employer has contributed to various employee benefits

Want

The desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival

Form W-4 (Employee's Withholding Allowance Certificate)

The form that determines the percentage of an employee's pay that will be held for federal taxes

Pay period

The regular schedule by which employers pay employees

Opportunity cost

The value of the next best alternative that must be forgone as a result of a decision

Savings tools

There are four common types of savings tools: checking accounts, savings accounts, money market deposit accounts, and cerficates of deposit, ordered from lowest to highest rates of interest typically paid. ... limits your money is secure when deposited in one of the four savings tools.

Tax liability

Total tax bill

Direct deposit

Wages are deposited directly into a depository institution account

Savings account

a bank account that earns interest.

Commercial Bank

a bank that offers services to the general public and to companies.

Debit Card

a card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Online banking

a method of banking in which transactions are conducted electronically via the Internet.

Credit Union

a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.

Checking Account

an account at a bank against which checks can be drawn by the account depositor.

Cost of living

average cost of basic necessities of life (as food and shelter and clothing)

Interest

money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Interest rate

the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.