Income Matching Terms

Garnishment

A court order to an employer to withhold some of an employee's wages; that money must be sent to the court to pay someone who has won a lawsuit against the employee.

Wages

A fixed amount of money paid to an employee for each pay period.

Insurance

A method for spreading individual risk among a large group of people to make loses more affordable for all.

ARM

A mortgage on which the interest rate can move up or down on a periodic basis.

Points

A mortgage term that refers to the fee a lender charges the borrower for lending money.

Leave

A period of time away from your job, sometimes paid.

Exemption

A tax break received because of particular circumstances.

Cafeteria-style Benefits

Allows workers to choose the benefits that best meet their personal needs.

Escrow Account

An account usually set up by a mortgagee for the purpose of collecting and paying property taxes and insurance on the property.

Mortgage

An agreement that a borrower gives a lender in return for the lender giving a loan for the purpose of buying property.

Economic Condition

Consumer prices, consumer spending, and interest rates.

Income

Money that a person receives such as a paycheck from a job, an allowance from parents (inheritance), or interest earned on a savings account.

Cost of Living

Price of food, transportation, housing, and other expenses.

Pension Plan

Retirement plan that is funded at least in part be an employer.

Benefits

Something the company offers besides a paycheck.

Retirement

The age at which you stop working full time.

Invest

The use of savings to earn a financial return.