| A | B |
|---|
| Finance | the way in which money is used and handled. |
| Scarcity | the condition that exists because there are not enough resources to produce everyone's wants. |
| Opportunity Cost | second best alternative you give up when you make a choice. |
| Comparative Advantage | the ability to produce at a lower opportunity cost than another producer. |
| Gross Pay | the amount you are paid before all the deductions are subtracted. |
| Budget | an itemized summary of probable income and expenses for a given period. |
| FICA | a tax or required contribution that most workers and employers pay. The acronym for Social Security and Medicare Tax. |
| Net Pay | gross pay minus deductions and taxes. |
| Disposable Income | the amount of a person's paycheck that is available to spend or save. |
| W-4- | a form completed by an employee to indicate his or her tax situation. |
| IRS | the federal agency that collects income taxes in the United States. |
| Tax Return | document giving the tax collector information about the taxpayer's tax liability. |
| Dependent | a person who relies on someone else for support. |
| Checking Account | an account held at a bank or credit union in which account owners deposit funds. |
| Credit Union- | a non-profit money making cooperative whose members can borrow from pooled deposits at low interest rates. |
| Debit Card | plastic card similar to a credit card that allows money to be withdrawn or the cost of purchases paid directly from the holder's bank account. |
| Credit Card | a small plastic card issued by a bank, business, etc allowing the holder to purchase goods or services on credit. |
| Compound Interest | interest accrued on the sum of the original principal plus interest already earned. |
| Rule of 72 | a method to estimate the number of years it will take for a financial investment (or debt) to double its value (or cost) Divide the number 72 by the interest rate (percentage) to determine the appropriate number of years it will take the investment (debt) to double its value (cost). |
| Interest | the price of using someone else's money. |
| Law of Demand | as the price of a good or service rises, the quantity demanded of that good or service falls. Likewise, as the price of a good or service falls, the quantity demanded of that good or service rises. |
| Law of Supply | as the price of a good or service rises, the quantity of that good or service rises. Likewise, as the price of a good or service falls, the quantity supplied of that good or service falls. |
| Credit Score | a number assigned to a person that indicates to lenders their capacity to repay a loan. |
| Check Register | the journal used to record all of the checks, cash payments, and outlays of cash during an accounting period. |
| Bank Reconciliation Form | a form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible discrepancies. |
| Outstanding Check | a check that has been written by someone but it has not yet cleared the bank account on which it is drawn. |
| Credit | the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. |
| Credit History | a person's payment activity over a period of time. |
| Creditor | a person, financial institution, or other business that lends money. |
| Renting | to pay someone for the use of something, typically property, land, or a car. |
| Identity Theft | the fraudulent acquisition and use of a person's private identifying information, usually for financial gain. |
| APR | the annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. |
| Capital | wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing. |
| Insurance | a practice or arrangement by which a company or government agency provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. |
| Premium | an amount to be paid for an insurance policy. |
