Economics

Front

What is net income?

Back

Your take home pay. Gross income minus deductions

Front

What is gross income?

Back

The amount of money you make before deductions

Front

What is deductions?

Back

The money taken out of your pay (ie. taxes)

Front

What do you put in the INCOME part of your budget?

Back

Net Income

Front

What are expenses?

Back

The money that you spend

Front

What is a Savings Account?

Back

Where you can deposit your money into a bank. You earn a small amount of interest off this investment method. You can access your money, but the bank will penalize you if you withdraw from it too much.

Front

What is a Certificate of Deposit (CD)?

Back

Where you can deposit your money into a bank for a specified amount of time to earn a higher amount of interest. You cannot touch your money during the time it is invested this way.

Front

What is a Bond?

Back

When you loan money to a business or the government. You can cash it (after it matures) and get your initial payment back and your earned interest.

Front

What is a Mutual Fund?

Back

Where an investor pools together several people's money and invests it in stocks and bonds. Good if you don't have the money to diversify and want to make more money than a CD or savings account.

Front

What are Stocks?

Back

You own part of a company. You may earn a dividend where you get part of the company's profit. You want to buy this when the price is low and sell when it's high.