Math Vocabulary Ch.10 Financial Literacy

Simple Interest

The amount paid or earned for the use of money. The formula for simple interest is; I=prt

Expenses

The cost required to buy an item or service

Net Worth

The value of ones assets minus ones liabilities

Family Budget

A family plan for spending

Income

A financial gain from capital or labor

Rebate

A partial return or refund on an amount paid

Budget

A plan for spending

Income Tax

A tax on the net income of an individual or business

Coupon

A voucher entitling its user to a cash refund

Interest

Amount of money paid or earned for the use of money

Sales Tax

An additional amount of money charge on items that people buy

Personal Budget

An individual plan for spending

Variable Expenses

Costs that do change based on the amount that is used

Fixed Expenses

Costs that do not change based on the amount that is used

Liabilities

Debts that are owed by an individual

Monetary Incentives

Financial Resources, such as sales, rebates, and coupons, to buy an item

Compound Interest

Interest paid on the initial principle and on the interest earned in the past

Assets

Owned items by an individual

Wages

Payments for labor or service