money management key terms. money management paycheck key terms

Money ManagementMoney Management

Key Terms

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Paycheck Key Terms

Income

• Money that you get; usually from a job

Deduction

• An amount of money taken from an employee’s gross pay for taxes, insurance, social security, or other benefits

Income Tax

• The part of earnings that people must legally give to the government to pay for government services

Check Stub

• The part of the paycheck that lists deductions from salary

Gross Pay

• The total amount of an employee’s earnings before deductions are taken out

Net Pay

• The amount of a paycheck after deductions are taken out (sometimes referred to as take home pay)

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Budgeting Key Terms

Expenses

• Things you pay for each month with your income (Example: food, clothing)

Fixed Expenses

• Expenses that are the same each month (Example: rent)

Variable Expenses

• Expenses that are not the same each month, they fluctuate (Example: clothing)

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Checking Key Terms

Checking Account

• A bank account that you use with checks and/or debit card. Money is taken out of this account when you write a check or use your debit card.

Check

• A written order directing the bank to pay money as instructed by you to take money out of your account

Endorse

• To sign the back of a check before cashing

Ledger/Check Register

• Your record of your account

Balance

• Money available in your account

Bounced/Bad

• A check written for more than the amount in your account

Deposit

• A written order directing the bank to put money into your account

Withdraw

• When you take money out of your savings or checking account

ATM

• Automated Teller Machine; acts as a bank teller usually open 24 hours

Debit Card

• Plastic card with a magnetic strip that accesses your account when the proper PIN number is given. Money is taken directly out of your account

Credit Card

• A plastic card allowing you to purchase merchandise with future money

Savings Account

• A bank account that you deposit money into. Interest is earned on the money that is in the account.