Personal Finance A Final Exam Review

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Occupational Outlook Handbook (OOH)
government publication/research source for careers in demand
Dictionary of Occupational Titles (DOT)
dictionary of careers in demand
Technology
has big impact on careers today, causes downsizing and job creation, many careers in this field are emerging
Productivity
how efficient a system, person, or business is. Output vs. input
Job Analysis
process of gathering and analyzing information about the content and requirements of jobs as well as the environment in which jobs are performed in order to determine placement of jobs
Salary
fixed annual amount of gross pay
Promotion
raising an employee to a higher position or rank in the business based on hard work and job openings
Employee expenses
form of benefits that includes the company paying for a part of or all of the employees expenses that would be considered doing their job (travel expenses, etc.)
Work characteristics
sell variety, autonomy, feedback, job satisfaction, job performance, etc. that are measured of a specific business
Entrepreneur
person who takes the risks of being self-employed and owning a business
Upgrading
advancing to a higher level of skill to increase usefulness to employer
Retraining
learning new and different skills so that employees can retain same level of employment
Advanced degrees
degrees above an undergraduate degree- postgraduate, doctorate, master's, etc.
College placement center
office that finds suitable employment for college students after they have graduated form college
self-assessment inventory
lists strengths and weaknesses along with plans for improvement
Networking
interacting with others and other businesses to exchange information and develop contacts, especially to further one's career.
Gross pay
total amount you earn before deductions are subtracted
overtime
time worked beyond regular hours- 1.5x regular pay rate
deductions
amounts subtracted from gross pay
net pay
amount left in paycheck after deductions are taken from gross pay
benefits
compensation provided to employees in addition to their normal wages or salaries
incentive pay
form of compensation encouraging employees to strive for higher levels of performance
employee services
other activities offered to employees in addition to their paycheck- recreation programs, community services, childcare, etc.
vested
when an employee becomes entitled to the full retirement amount after a specified period of employment
flextime
work schedule allowing employees to choose their work hours within a defined time limit
compressed work week
work schedule that fits the normal 40 hour work week into less than 5 days.
job rotation
rotation from one task to another- employees are trained in more than one task
job sharing
job design in which two people share one full-time position (split salary too)
labor union
an organized association of workers, often in a trade or profession, formed to protect and further their rights and interests
craft union
those who practice a specific craft or trade
public employee union
union that primarily represents the interests of employees within a public sector or governmental organizations
industrial union
skilled, semi-skilled, or unskilled employees in a certain industry, no matter skill or trade
professional union
usually a nonprofit organization seeking to further a particular profession, those affected and interested in the profession, and the public interest
collective bargaining
negotiation of wages and other conditions of employment by an organized body of employees
seniority
length of time a person has held a job
strike
a stop of work caused by the refusal of employees to work until what they want is given to them and a negotiation is made.
professional organization
people in a certain occupation that requires considerable training and specialized skills
lobbying
attempt to influence public officials to pass laws to benefit the profession
check
written order to a bank to pay the amount stated to the person or business named on it
demand deposit
money can be withdrawn at any time
canceled check
check that has cleared your account
overdraft
check written for more money than your account contains
floating a check
writing checks, hoping to deposit money to cover them before the clear
checkbook register
booklet used to record checking account transactions
reconciliation
process of matching your checkbook register with the bank statement
blank endorsement
signature of the payee written exactly as his/her name appears on the front of the check
special endorsement
endorsement that transfers the right to cash the check to someone else
restrictive endorsement
restricts/limits use of a check
certified check
personal check that the bank guarantees or certifies to be good
cashier's check
check written by bank on its own funds
stop payment order
request that the bank not honor a specific check
discretionary income
money left to spend or save after taxes and other deductions (required and optional) are taken
principal
amount of money you deposit into a savings account
interest
earnings on your deposit
compound interest
interest paid on the original principal plus accumulated interest
annual percentage yield
the actual interest rate an account pays, stated on a yearly basis with the compounding included
share account
savings account representing ownership interest; savings account at credit union
securities
financial instruments that represent ownership positions in a publicly-traded corporation (stock), a bond, or rights to ownership as represented by an option.
stockbroker
one who buys and sells securities on a stock exchange on behalf of clients.
liquidity
measure of how quickly you can get your cash without loss of value
certificate of deposit
"time deposit"- deposit that earns a fixed interest
maturity date
date on which an investment becomes due for payment
money market account
offers a more competitive interest rate than a regular savings account
revenue
income, earnings, etc.
progressive taxes
takes larger share of one's income as the amount of income grows ex: income tax
proportional taxes
"flat tax"- tax for which the rate stays the same regardless of one's income ex: property tax
tax brackets
income range in which one has a set tax rate
audit
examination of income tax returns
exemption
an amount you may subtract from your income for each person who depends on your income to live-each exemption reduces taxable income and therefore total tax
gross income
all of the taxable income you receive during the year
child support
money paid to a former spouse for support of a dependent children
tax evasion
willful failure to pay taxes- serious crime punishable by fine, imprisonment, or both
alimony
money paid to support a former spouse
adjusted gross
adjustments subtracted form gross income including contributions to retirement, student loan interest, alimony, tuition, and fees.
itemize
expenses subtracted from adjusted gross income to determine taxable income
standard deduction
stated amount subtracted (optional) from adjusting gross income instead of itemizing your deductions
taxable income
income on which you pay tax
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