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.