Personal Finance Vocabulary

What is money one earns through employment?

• Income

• Budget

• Credit

• Debt

Select the best meaning for wage / salary.

• Money paid by an employer to an employee for their labor / service.

• Money paid for a specific event or percent sold.

• The lowest amount an employer can legally pay.

• Money set aside for future use.

Which of the following describes commission?

• Money paid to a person for a specific job, event, or product.

• Money paid by an employer to an employee.

• The lowest amount of money an employer can pay.

• Money a person owes to another person.

Why is budgeting important?

• Create a plan for saving money.

• Cover one's basic needs

• To create debt

• To pay extra interest.

Spencer has to pay his phone bill and car insurance every month. What is this called in finance?

• Expenses

• Savings

• Credits

• Wages

True or False: retirement means to leave your job and to stop working.

• True

• False

What is debt?

• Money you have borrowed and need to pay back

• Money you make from working at a job

• Money you make from the government

• Taxes that you pay when you buy something

The amount of money paid either monthly or biweekly

• Income

• Salary

• Hourly Pay

• Deposit

Which of these is a reason to have a budget for income and expenses?

• To make sure you have enough money to spend and save

• To be able to have the most expensive items

• To buy as much as you can on credit

• To invest all your money

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future is called what? (one word)

(a)