43 terms

Vogel-5th grade Financial Literacy

STUDY
PLAY
Income
money that you earn
Expense
money that you spend on something
Salary
the money you receive for working. (This is a flat amount per week, per month, or year.)
Deducted
to take out of, or subtract. (Taxes are deducted from your salary.)
Gross Income
total income before taxes and deductions are taken out (More)
Net Income
income after deductions are taken out. Net income is less than gross
Annual
yearly-once a year
Monthly
once a month
Income Tax
taxes taken out of an employee's paycheck
Payroll Tax
taxes paid by the employer on behalf of their employees
Sale Tax
a tax paid by the consumer when they buy something
Property Tax
a tax on real estate by local government
Withdrawal
to take money out of an account. When you make a withdrawal, your account balance goes down
Budget
an organized plan for spending and saving money
Balanced budget
a budget where income is greater than expenses (you earn more than you spend)
Variable expense
an expense that changes each month
Fixed expense
an expense that stays the same each month
Interest
money paid regularly at a percentage rate for the use of money lent or deposited into a savings account
Balance
the money left in an account after spending
Check register
the journal used to record all of the checks and payments during an accounting period
Allowance
money that you are given regularly, especially to pay for a particular thing
Deposit
money put IN to an account; balance goes up
Transactions
something you do that changes the balance of your account; either a deposit or withdrawal
Consumer
a person who purchases goods and services
Bank fees
money that a bank charges for various services at the bank, such as buying checks
Charitable donation
a gift made by an individual to a non-profit organization or charity
Payment
the process of paying someone or something
Tax
money paid to the government in exchange for public "free" services such as road maintenance and police protection
Check
a written order asking banks to pay a certain amount from YOUR checking account to the payee. It can take several days
Credit Card
a card issued by a bank that allows a user to buy items and services immediately and pay for the cost later.
Debit Card
an identification card that is issued by a bank and allows user immediate use of money in their bank account. Usually has a PIN (Personal Identification Number) to keep it safe. Easy to use but not always accepted.
Adjusted Budget
when you take money from one area of spending and add it to another to make sure you are not spending more than you earn. This could happen to pay an unexpected bill or save for a vacation or special event
Savings
Money set aside from your earnings to use at a later time. If you deposit into a savings account into a bank you may earn interest on that money over a period of time.
Money
Currency used by consumers. In the U.S.A. we use
dollars and cents.
Deductions
Money taken from your earnings to pay for taxes, insurances and other services your employer offers.
Variable amounts that are subtracted, or deducted, from your gross income.
Earn
To work for a certain amount of money.
Pay Wage
Amount of money a person earns per hour, week, month or year.
Value
The financial worth of a product or service.
Retail
Having to do with goods being sold.
Example: A retail store sells goods (toys, clothes, electronics, food, etc...)
Car payment
A payment made each month to a financial institution (bank, loan service) to pay for the cost of a car/truck/motorcycle.
Mortgage/House payment
A payment made each month to a financial institution (bank, loan service) to pay for the cost of a home you are purchasing.
Rent
A monthly payment made to a property owner in order to live in their property (house, apartment, trailer, etc..)
Pay stub
A receipt given to an employee by their employer documenting wages (Gross income), deductions and total net income.

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