Financial Literature Terms

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  1. amount you can subtract from the taxes you owe, if you are eligible
    tax deduction
  2. usually a two-year school offering both academic & occupational courses
    community colleges
  3. physical & mental skills developed through learning, training, and practice
  4. wage and tax statement, it is usually mailed to your home and states the amount you were paid during the previous year and the amount of taxes that were withheld
  5. outline of jobs in a given career field that have different levels
    career ladder
  6. benefit that reduces the amount of income that is taxed
    tax credit
  7. an outline of steps or action you can take to reach a career goal
    career plan
  8. nonmenetary compensation received in addition to a wage or salary
  9. payment for work and is usually computed on an hourly, daily, or piecework basis
  10. wage based on a rate per unit of work completed
    piecework income
  11. prepares you for a specific type of work, is available through a variety of schools and programs in addition to online offerings
  12. payment and benefits received for work performed
  13. governement payment or benefit promised by law to eligible citizens
  14. expense that can be subtracted from taxable income
    tax deduction
  15. combining of on-the-job training, work experience, and classroom instruction
  16. federal program that provides income when earnings are reduced or stopped because of retirement, serious illness or injury, or death
    social security
  17. federal program that pays for certain health care expenses for older citizens and others with disabilities
  18. government program that pays certain health care costs for eligible low income individuals and families
  19. employee's witholding allowance certificate, it tells your employer how much to withhold from your paychecks as payroll deductions
  20. money paid for service beyond what is required
  21. natural physical and mental talents
  22. the process of setting up and maintaining an organized system for your financial affairs
  23. the concept that you do not spend more than you can afford
    common sense rule
  24. the understanding of the basic knowledge and skills needed to manage financial resources
    financial literacy
  25. taking an active role in preparing for your present and your future through smart money decisions
    financial planning
  26. when expenses exceed income
  27. the amount by which income exceeds expenses
  28. difference between planned spending and actual spending
    budget variance
  29. deductions from earnings
  30. a spending plan of expected income and expenses over a period of time
  31. 5 steps in the decision making process
    • 1. define problem
    • 2. explore alternatives
    • 3. choose best one
    • 4. act on it
    • 5. evaluate it
  32. Explain: Pay Yourself First
    Putting money into savings immediately, so in case of an emergency you have it readily available.
  33. SMART:
    • Specific
    • Measurable
    • Attainable
    • Realistic
    • Time Frame
  34. Chief advantage of a budget:
    it can help you make the most of your money and avoid financial problems
  35. Fixed expenses include:
    installment payments, insurance premiums, and rent
  36. NSF Fee
    a penalty fee charged when you write a check for more than you have in your account, the check is NOT honored
  37. Overdraft fee
    a penalty fee that your bank may charge when you write a check for more than you have in your account, yet they still cover the check
  38. a process of comparing the bank statement balance to the check register to update the records a tthe end of a moth
  39. an endorsement that includes only the name of the individual whom the check was written to
    blank endorsement
  40. "for deposits only by" on endorsement
  41. an endorsement with "pay to the order of"
  42. the least amount of money your bank requires to be maintained to avoid fees
    minimum balance
  43. the monthly fee charged by banks to keep your account up to date
    check fee
  44. both signatures required on check
  45. either signature on check
    joint signature
Card Set:
Financial Literature Terms
2012-01-24 21:38:24
Financial Lit Terms

Pd. 3 Exam Cards
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