Ch 1 Vocab - Intro to Personal Finance

Definition: what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay

• Gross Income

• Retained Earnings

• Operating Income

• Net Income

Definition: A person or organization that uses a product or service

• Consumer

• Government

• Reseller

• Producer

Definition: the percentage of principal charged by the lender for use of its money

• None Of These

• Discount Rate

• Exchange Rate

• Interest Rate

Definition: financial debts or obligations

• Revenue

• None Of These

• Liability

• Equity

Definition: a plan of action that allows a person to meet not only their immediate needs but also their long-term goals

• Operations Plan

• Financial Plan

• Marketing Plan

• Operational Plan

Definition: the amount by which the value of a person's assets exceeds or falls behind the value of their liabilities

• Working Capital

• Net Worth

• Net Income

• Net Profit

Definition: anything that is owned by an individual, including money in the bank or investments

• Revenue

• Liability

• None Of These

• Asset

Definition: the additional cost a lender charges for borrowing their money

• Interest

• Wages

• Income

• Taxes

Definition: all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time

• Financial Literacy

• Debt

• Personal Finance

• Net Worth

Definition: The granting of a loan and the creation of debt; any form of deferred payment

• Collateral

• Deposit

• Debt

• Credit