Personal Finance Vocab

Personal Finance Vocab

deduction

money subtracted from a paycheck

net pay

money you take home after deductions

gross pay

amount of money you actually earn

Multiple Choice

The amount of money that you actually get a paycheck for and can use to buy groceries is ___.

• deduction

• net pay

• gross pay

Social Security

a government insurance program that pays benefits to retired people

medicare

a government medical insurance program for people 65 and over

Multiple Choice

The government only provides Medicare to people who are low income or have a disability.

• True

• False

overtime

work performed beyond required or normal hours

time and a half

a rate of pay that is equal to what a worker usually earns for an hour plus half of that amount

salary

money earned based on a contract, not an hourly wage; normally eligible for benefits such as health care

Multiple Choice

People who are paid an hourly wage are usually eligible for work benefits like insurance and health care.

• True

• False

loan

money that is borrowed and is expected to be paid back with interest

interest

amount you pay for the use of borrowed money

down payment (money down)

the amount of money used to initially purchase something.

Multiple Choice

A loan is money that one person gives to another as a gift.

• True

• False

lease

paying for a portion of the car's actual cost as opposed to having to pay for the car in its entirety

insurance

a contract between you and an insurance company that says the insurance company will help pay for damages if something happens to you and/or your car

Multiple Choice

If you "rent" a car long-term, the rental contract is called a ___.

• insurance

• down payment

• lease

depreciation

loss of or reduction in value over time

registration

legal connection of a car to its owner

operating costs

the costs associated with owning and maintaining a vehicle

Multiple Choice

The loss of value over time is called ___.

• operating costs

• depreciation

• registration