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.

How does the U.S. Government affect payment for work in the United States?

• The U.S. Government sets a minimum wage.

• The U.S. Government sets a maximum wage.

• The U.S. Government sets an average wage.

• The U.S. Government sets a quota for businesses.

Why is budgeting important?

• Create a plan for saving money.

• Cover one's basic needs

• To create debt

• To pay extra interest.

What are bills you have to pay called in finance?

• Expenses

• Savings

• Credits

• Wages

What is an advantage of saving?

• You have money for emergency use

• You have money for retirement

• You avoid debt

• It takes time to save up money.

Which of the following is a difference between Rent and Mortgage?

• You can live in a house

• You pay it monthly

• You own it after finishing paying the agreed payments

• The payments can change slightly due to taxes and demand for housing.

Which of the following describes credit?

• Borrowing money that you have to pay back later.

• A percentage that gets added back onto the total amount owed.

• Money owed to a bank or lending company.

• A person, bank, or company that lends money.

A _________ loans money to people