Personal Finance Vocabulary Assessment

Front

What is the definition of wealth?

Back

A measurement of your assets minus your liabilities

Front

What is the difference between wage and salary?

Back

Wage is a set amount paid for every hour worked, while salary is a fixed amount paid over a period of time.

Front

What is a zero-based budget?

Back

A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere.

Front

What is the definition of cost of living?

Back

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Front

What is the definition of gross pay?

Back

Total earnings before any deductions are taken

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before any deductions are taken and net pay is your take home pay.

Front

What is the definition of a freelancer?

Back

An individual who earns money on a per-job or per-task basis, usually for short-term work.

Front

What is the definition of a residential lease?

Back

A contract between a tenant and a landlord providing the terms and costs for renting the property.

Front

What is the definition of a surplus?

Back

When your income exceeds your expenses and you have money leftover

Front

What is the definition of a variable expense?

Back

A cost that appears irregularly or that changes in amount.