Personal Finance Vocabulary

______ is the ability to borrow money or access goods or services with the understanding that you'll pay later.

• Medicare

• debit

• credit

• income tax

A ________ is an agreement between you and a lender that allows you to borrow money to purchase or refinance a home.

• 401k

• hourly wage

• mortgage

• dividends

An asset that is passed down from parents to children to grandchildren is known as________ _______?

• generational wealth

• net worth

• contractor services

• gross pay

An employee-sponsored, defined-contribution, personal pension plan is called a ____?

• FAFSA

• mortgage

• credit

• 401k

The set amount of money a worker earns for one hour of work is their ______ ____.

• credit

• salary

• hourly wage

• dividends

An account with a bank or other financial firm that allows the holder to make deposits and withdrawal is a ________ _______.

• social security

• bank

• credit card

• checking account

A system in which the buyer can take and use goods by paying a percentage of the price as deposit, and pay the remainder due by a series of regular installments.

• Portfolio

• Installment plan

• Credit history

• Fixed expense

What is the term for the money you earn from working or investments?

• A) Debt

• B) Income

• C) Liability

• D) Expense

Which term describes the total amount of money you owe to creditors?

• A) Asset

• B) Equity

• C) Debt

• D) Revenue

What is the financial term for the difference between your assets and liabilities?

• A) Net Worth

• B) Gross Income

• C) Cash Flow

• D) Budget