Fin Lit Terms

Gross Pay

• Total amount earned before deductions are subtracted

• Amount after taxes and deductions

• Net income after all expenses

• Salary before bonuses and commissions

Interest

• A fee charged by the bank for account maintenance.

• A percentage of the money that is in an account that a bank pays on some accounts.

• A type of investment that guarantees returns.

• A penalty for withdrawing money too early.

Principal

• The total interest paid on a loan.

• The balance, or amount of money, in an account, or amount borrowed.

• The fees associated with opening a bank account.

• The minimum payment required on a credit card.

Overtime

• Time worked beyond regular 40 hours.

• Time taken off from work for personal reasons.

• Time spent in training sessions during work hours.

• Time worked during weekends only.

Net Pay

• The total earnings before any deductions are made.

• The amount left over after deductions are taken out of the gross pay. Some call this take-home pay.

• The amount of money earned from investments.

• The sum of all deductions from gross pay.

Semimonthly

• Twelve times a year, once a month

• Twenty-Four times a year, twice a month

• Thirty times a year, three times a month

• Fifty-Two times a year, once a week

Overtime Rate

• One and a half (1.5) times the normal hourly amount of compensation

• Double the normal hourly amount of compensation

• Normal hourly amount of compensation

• One and a quarter (1.25) times the normal hourly amount of compensation

Checking

• An account at a bank that allows a customer to deposit money, make withdrawals, and make transfers from the funds on deposit (everyday account).

• A type of savings account that offers higher interest rates for long-term deposits.

• A loan provided by a bank to purchase a home or property.

• An investment account that allows customers to buy and sell stocks and bonds.

Hourly Rate

• Set amount paid for each hour of work.

• Payment made at the end of the month.

• Fixed salary regardless of hours worked.

• Bonus paid for overtime work.

Savings

• An account in which the bank pays interest for use of the money deposited into the account.

• A type of account that incurs fees for withdrawals.

• An account that allows unlimited transactions without any interest.

• A loan provided by the bank to customers for personal use.