BYF Book 1 Key Terms

Match the following

• Gross Pay

• regular pay, overtime, and other earnings paid to an employee before taxes or any other obligations are deducted

• Excise Tax

• outlay of money needed to pay for items, services, etc.

• Needs

• an itemized list of income and expenses for a given period of time; a plan for spending money

• Expenses

• basic survival necessities

• Budget

• a federal, state, or local tax placed on non-essential consumer goods

Match the following

• Net Pay

• remaining income you take home after taxes and other deductions are made

• Total Cost

• tax imposed by many states, counties, and cities on purchases

• Quality

• the standard of something as measured against other things of a similar kind

• Unit Cost

• amount spent on an item or activity that includes all associated expenditures

• Sales Tax

• the price you pay for an item divided by the quantity it contains, based on a standardized measurement

Match the following

• Compounding of Interest

• total amount of money that is in the account at a given point in time

• Value

• when money is earned on the total amount in the account, including the initial deposit and interest that has already been credited to the account

• Account Balance

• money put into an account

• Wants

• the amount of use or benefit you get from an item

• Deposit

• items a person desires that are not essential

Match the following

• Interest Rate

• percentage you are paid for your money

• Interest

• the process of setting money aside to increase wealth over time and accumulate funds for long-term financial goals such as retirement

• Future Value

• money paid to you by the bank for being able to use your money

• Investing

• the amount that $1 at some point in the future is worth today

• Discount Factor

• how much a set amount of money will be worth in the future

Match the following

• Saving

• a formula designed to help people estimate how long it will take to double their money at a certain expected interest rate

• Rule of 72

• the process of setting money aside until a future date instead of spending it today

• Present Value

• the value of money right now, today

• Withdrawal

• money taken out of an account

Match the following

• Account Balance

• an account at a bank against which payments can be made based on available funds that are deposited by or on behalf of the account holder

• Check

• a machine that allows you to perform basic banking functions without the help of a teller

• Automated Teller Machine (ATM)

• handwritten or computer-generated order specifying the amount of money to be paid and the name of the person or company who should receive the funds

• Checking Account

• a book or document in which to record the money taken out or put into a checking account. Designed for recording checks, withdrawals, and deposits, it can be updated to fit other methods of banking and spending

• Check Register

• total amount of money that is in the account at a given point in time

Match the following

• Debit Card

• the movement of funds using computer systems, telephones, electronic terminals, or smartphones

• Digital Payment Service

• a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase

• Electronic Funds Transfer (EFT)

• stealing someone’s personal, identifying information and using it to make purchases or to get other benefits

• Minimum Balance

• an app or online tool that is provided by a company independent of the bank that holds your checking account

• Identity Thef

• the amount of money that must be kept in an account to avoid service charges, qualify for special service, or earn interest on a checking account

Match the following

• Near-Field Communications (NFC)

• technology that allows two devices to “speak” to each other when they come into close range. It is the basis for services that allow one to pay with a smartphone simply by waving a device over a receiver at the register

• Average Daily Balance

• the average amount owed on the credit card for each day of the billing cycle, calculated by adding up each day’s ending balance and then dividing by the total number of days

• Annual Percentage Rate

• the yearly interest rate paid on the credit card balance

• Annual Fee

• a short-term loan provided by a credit card issuer in the form of cash through the use of an ATM or bank

• Cash Advance

• the amount of money the credit card issuer charges for having the credit card account each year

Match the following

• Credit

• the interest rate you pay each day on the outstanding balance

• Credit Limit

• a card that allows the cardholder to repeatedly purchase products and services on credit. Most credit cards have credit limits and monthly minimum payments, but users are allowed to carry an outstanding balance from month to month

• Charge

• the ability to make purchases with the promise that the money will be repaid later

• Daily Finance Charge

• monies borrowed using a credit card

• Credit Card

• the maximum amount of money that the credit card issuer will allow you to charge

Match the following

• Minimum Payment

• the interest payment owed on the credit card balance

• Interest Rate

• the least amount one can pay on the card and still keep your account in good standing; typically, a percentage of the outstanding balance or some pre-set minimal amount if the balance is low

• Late Fee

• the percentage paid on the money one has charged

• Finance Charge

• a penalty charged for not making the required minimum payment by the due date