Personal Finance Basics

Fixed Income = same amount of money earned on a set interval basis, such as monthly or quarterly Variable Income = amount of money earned is not the same each pay period Fixed Expense = a bill, such as monthly rent, which is the same each month Variable Expense = a bill, such as a utility bill, which is a different amount each month

ATM Withdrawals = cash withdrawn by using a debit card and entering a PIN in an ATM Checkbook Register = log of deposits and withdrawals from a checking account Closing Balance = balance of an account on the day the bank runs the bank statement Deposit = money put into an account

Wages = payment earned on a variable schedule of daily or weekly basis, money received for services or work performed by the employee hourly Salaries = payment earned on a fixed schedule of bi-weekly or monthly; money received for services or work performed by an employee as an annual sum Interest = money paid at a rate for the money which is being loaned out Rent = payment set by landlord for tenant's use of property

<p>Discretionary Expense = money without a specific purpose left over each month after all bills have been paid Reconciliation = balancing bookkeeping account information to be consistent with the bank’s bookkeeping of the same account information Transfer Payments = one-way payment of money for which no service or good is exchanged Itemization = specific listing of individual pieces or units of information</p> Signup and view all the answers

<p>Take-home Pay = amount of a paycheck one gets to keep after taxes and other deductions are taken out Dividends = earnings paid to shareholders by a company from its profits Capital Gain = profit made from investment For-Profit = (a business or institution) initiated or operated for the purpose of making a profit</p> Signup and view all the answers