Chapter 8 Personal Finance Vocab

Take home pay, gifts, allowance, and interest.

• gross income

• net income

• savings

• collateral

Smallest amount you can pay and remain in good standing.

• grace period

• maximum monthly payment

• minimum monthly payment

• line of credit

Interest on principal only.

• compound interest

• net income

• credit

• simple interest

Total dollar amount you use to pay credit.

• grace period

• line of credit

• credit

• finance charge

Cost of credit on a yearly basis.

• APR

• APY

• ARM

• ARY

Measure of a person's ability and willingness to make payments on time.

• credit rating

• line of credit

• open-end credit

• colded-end credit

Arrangement to receive cash, goods, or services now and pay later.

• credit

• line of credit

• net income

• collateral

Time period with no finance charge.

• cosigning

• grace period

• open-end credit

• finance charge

Entity that lends money.

• cosignor

• debtor

• predator

• creditor

Agree to be responsible for loan if other person fails to make payments.

• extending credit

• bankruptcy

• cosigning

• lending