Vocab 14: Personal Finance

Front

Amount made before deductions (taxes)

Back

Gross Pay

Front

Money after deductions (take home)

Back

Net Pay

Front

Estimate of income & expenses for a period (Money Plan)

Back

Budget

Front

Loan for buying property, secured by the property.

Back

Mortgage

Front

Specialized savings account with tax breaks and compound interest for retirement.

Back

IRA

Front

Ease of converting an asset to cash.

Back

Liquidity

Front

Cost remains constant monthly (e.g., rent, insurance)

Back

Fixed Expenses

Front

Cost varies monthly (gas, food, repairs, gifts)

Back

Variable Expenses

Front

Basic necessities in budgeting: Food, Clothes, Shelter, Transportation

Back

Four Walls

Front

A bank account for anytime deposits/withdrawals.

Back

Checking Account