| A | B |
|---|
| Business | The purchase or sale of goods or services in an attempt to make a profit |
| Finance | The management of income or revenues; the conduct or transaction of money matters. |
| Consumer | Anyone who buys/uses goods or services. |
| Needs | Those things necessary for survival; food, clothing, shelter, etc. |
| Wants | Those things we would like to have to make life easier or more pleasant. |
| Goods | Tangible items available for purchase or trade. |
| Services | Intangible items available for purchase or trade. |
| Opportunity cost | What you give up when you make one choice over another. |
| Values | The beliefs and principles you consider important, correct and desirable; your ideals. |
| Goals | Future outcomes that you work toward. |
| Natural resources | Raw materials supplied by nature that come from the earth, the water, or the air, and are used to produce goods. |
| Human resources | The people who contribute physical and mental energy to the production process. |
| Capital resources | The tools, equipment,and buildings that are used to produce goods and services. |
| Entrepreneurial resources | The initiative to combine natural, human and capital resources to produce goods or services. |
| Traditionalism | An economy in which people do things the way they have always been done. |
| Communism | An economy in which the government makes all decisions regarding business and production. |
| Socialism | An economic system in which the government owns major industries, but allows for private ownership of other businesses. |
| Capitalism | An economic system where the basic economic decisions are based on the actions of individual people and businesses; a free market economy; free enterprise. |
| Standard of living | A measure of how well people in a country live. |
| Processors | Businesses that change natural/raw materials into a more finished form. |
| Manufacturer | Business that takes processed materials and converts them into useable goods. |
| Distributor | Business which gets goods from the manufacturer to the retailer |
| Retailer | Business which sells goods to the public. |
| Business cycle | Movement of the economy from one phase or condition to another. |
| Depression | A phase in the business cycle marked by an extended period of high unemployment, decline in sales, and increase in business failures. |
| Recession | A "dip" in the business cycle marked by an increase in unemployment and a decrease in sales and production. |
| Recovery | An upswing in the business cycle after a time of recession or depression. |
| Prosperity | The peak of the business cycle; when employment and demand for goods and services are high. |
| Consumer price index | Shows changes in the average prices of goods and services. |
| Productivity | The number of items produced per worker; measure of how much a company is producing. |
| Sole proprietorship | A business owned and operated by one person. |
| Partnership | A business owned and operated by two or more people. |
| Corporation | A business owned by stockholders. |
| Franchise | A written contract granting permission to sell someone else's product or services. |
| Scarcity | Limited supply of a product; scarcity usually makes the price of a product higher. |
| Discretionary Income | Income that is left over after a consumer's basic needs have been met. |
| Nondiscretionary Income | Income used to purchase items to meet basic needs. |
| Convenience Goods | Goods consumers buy regularly without spending much effort. |
| Shopping Goods | Goods consumers buy after spending time looking around and comparing products. |
| Specialty Goods | Goods that consumers select by brand or company which require a special sales effort; usually expensive. |
| Department Stores | Store which have different departments selling a variety of products and services. |
| Mass Merchandisers | Sell a variety of items at reasonable or low prices; often are nationwide stores. |
| Outlet Stores | Off-price stores; usually buy from producers with surplusses; |
| Limited Line Retainers | Sell only one kind of merchandise. |
| Superstores | Extremely large stores; usually have grocery or supermarket items as well as clothing, garden products, etc. |
| Unit Price | The cost of an item per unit; such as the cost of milk per ounce, or apples per pound. |
| Generic Goods | Products that are unbranded and sold at a reduced price. |
| Brand-Name Goods | Products that have recognizable national or regional brand names. |
| Demand | The amount of goods or services consumers are willing and able to buy. |
| Law of Demand | Consumers will buy less of an item at a higher price than at a lower price. |
| Supply | Amount of goods or services that producers will provide. |
| Law of Supply | The higher the price the more producers will supply and the lower the price the less producers will supply. |
| Surplus | An over-supply of a product; more has been produced than consumers will buy. |
| Shortage | Scarcity; under-supply of a product. Demand is greater than supply. |
| Equilibrium Price | Market Price; the price at which th amount supplied and the amount demanded meet. |
| Demand | Amount of goods/services consumers are willing/able to buy. |
| Supply | Amount of goods/services producers are willing/able to provide. |
| Consumer | Buyers/users of products and services. |
| Market | Any place goods and services are bought and sold. |
| Price | The amount producers ask and consumers pay for a product or service. |
| Equilibrium | The market price; where supply meets demand. |
| Shortage | When consumers demand more that producers make; scarcity. |
| Surplus | Over-supply; when producers make more of a product than consumers buy. |
| Generic | Products that are unbranded and sold at reduced prices. |
| Outlet | Store that sells surplus or off-price goods. |
| Superstore | Very large store which sells a large variety of products. |
| Discretionary | Income used to purchase items to meet wants. |
| Rent | Example of a payment made with non-discretionary income. |
| Retailer | Sells directly to the public. |
| Wholesaler | Sells to retailers. |
| Convenience | Goods consumers buy regularly without much effort. |
| Specialty | Goods consumers select by brand or company; usually expensive. |
| Socialism | A mixed economy; major industries owned by government, others by individuals. |
| Communism | A controlled economy. Government makes all decisions on what to produce. |
| Traditionalism | An economy in which activities are conducted as they have been for generations. |
| Management | The process of planning, organizing, directing, and controlling |
| Leadership | The ability to influence individuals or groups to achieve organizational goals |
| Responsibility | A task that cannot be delegated |
| Authority | The right to make decisions about policies, procedures, and goals |
| Autocratic leader | One who gives direct, clear, and precise orders and makes decisions |
| Democratic leader | One who encourages workers to share in making decisions |
| Laissez-faire leader | Open leader; one who gives little or no direction to workers |
| Agenda | Form listing in order the items of business to be discussed at a meeting |
| Work team | A group of individuals who cooperate to achieve a common goal |
| Teamwork | The skills used to achieve goals |
| Training | Knowledge about tasks to be performed |
| Mentoring | Regular observation of an employee with follow-up on ways to improve performance. |
| Communication | The exchange of information or opinions. |
| Minutes | The official record of the proceedings of a meeting. |
| Judgment | Judgment—making decisions by considering facts, apply knowledge, experience and new information. |
| Integrity | Honesty;ethical decision making; doing the right thing even when no one is looking. |
| Initiative | Being a self-starter; highly motivated to get the job done without being told what to do. |
| Objectivity | Being able to look at all sides of a situation before making decisions. |
| Payroll | A list of employees and the payments due to each one for a specific pay period. |
| Pay Period | The amount of time over which an employee is paid, such as weekly, biweekly, or monthly. |
| Payroll Clerk | A person who is responsible for preparing the payroll. |
| Gross Earnings | The total amount of money an employee earns in a pay period. |
| Salary | A fixed amount of money paid to an employee for each pay period. |
| Wage | An amount of money paid to an employee at a specified rate per hour worked |
| Commission | An amount paid to an employee based on a percentage of the employee's sales. |
| Electronic Badge Reader | An identification badge with a magnetic strip that contains employee information used to record starting and ending work hours. |
| Overtime Rate | One and one-half time the employee's regular hourly pay rate. |
| Deduction | An amount that is subtracted from gross earnings. |
| Federal Income Tax | Tax paid to the federal (U.S.) government based on the employee's annual income. |
| Form W-4 | An employee's withholding allowance certificate, showing the number of allowances claimed for federal and state income taxes. |
| Allowance | Reduces the amount of income tax to be withheld |
| Tax Table | Shows the amount of taxes to be withheld from employees each pay period based on filing status. |
| Social Security Tax | Federal Insurance Contributions Act; provides old age and disability insurance. |
| Medicare | Provides health insurance benefits for the elderly. |
| State and Local Income Taxes | Tax on the earnings of people living within a certain area. |
| Voluntary Deduction | Deducted from paychecks according to the wishes of the employee. |
| Net Pay | The amount left over after total deductions are subtraced from gross earnings. "Take-home" pay. |
| Accumulated Earnings | The employee's year-to-date gross earnings. |
| Excise Tax | Tax levied on specific commodities, such as tobacco and liquor. |
| Tariff | A tax on items imported into the country. |
| Quota | A limit on the quantity of a product that may enter a country. |
| Progressive Tax | Tax in which the more a person earns, the greater the tax they pay. |
| Regressive Tax | A tax in which all people pay the same dollor amount. |
| Exempt items | Items on which one does not have to pay state sales tax, such as food. |
| Property Tax | Tax on real estate, such as homes, condos, and land. |
| Personal Property Tax | Taxon items such as cars, trucks, and furniture. |
| Estate Tax | Tax levied by the U.S. Government on property or money transferred from people who have died to their heirs. |
| Inheritance Tax | Tax paid by the heir who receives property or money from a deceased person's estate. |
| Gift Tax | Tax paid by the giver on a gift of money or property valued over $10,000. |
| Fixed Expenses | Ones that do not change from one period to another and are in exact amounts. |
| Financial Planning Process | The process of defining goals, developing a plan to achieve them, and putting the plan into action. |
| Decision Making | The process of considering and analyzing information related to personal and financial goals to determine an action plan. |
| Financial Planning Steps | Setting goals, analyzing information, creating a plan, implementing the plan, and monitoring/modifying the plan |
| Decision Making Steps | Identifying the goal, gathering information, analyzing outcomes, examining alternatives, making a decision, evaluating results. |
| Cash Inflow | Consists of money coming in to an individual or their net pay. |
| Goal | A specific statement of what you want to achieve, giving direction to your plan of action. |
| Assets | Consist of things of value or something that you own, such as a car, stereo system, etc. |
| Needs | Consist of something basic for your survival such as food, clothing, and shelter. |
| Wants | Consist of something you desire to make your life more comfortable. |
| Values | Beliefs anad ideas that you consider important or desirable. |
| Short-Term Goal | One that is less than a three-month time frame; focuses on immediate satisfaction. |
| Medium-Term Goal | One that focuses on a three-month to one-year time period. |
| Long-Term Goal | One that focuses on more than one year of time and requires delayed gratification. |
| Delayed Gratification | The willingness to give up something you want now in return for something better later. |
| Variable Expenses | Change from time to time and you have more control over them. |
| Gross Pay | The total amount of income from your wages or salary before payroll deductions. |
| Income | Any money coming in; salary, wages, interest, allowance, etc. |
| Liabilities | Money owed to creditors; mortgages, loans, etc. |
| Money Management | How you handle money coming in and money going out. |
| Net Income | Gross pay minus deductions; net pay or take-home pay. |
| Net worth | Assets minus liabilities; owner's equity. |
| Personal Spending Record | Source records for keeping up with income and expenses. |
| Smart Goals | Are specific, measurable, attainable, realistic, and time-bound (timely). |
| Values | Beliefs or ideas that you consider important or desirable. |
| Opportunity Cost | The cost of choosing one option over another. |
| Savings | Money you set aside for goals (usually short-term or intermediate-term goals) |
| Pay Yourself First | Setting aside money for future use or other investments; saving before spending anything. |
| Balance Sheet | Statement of net worth; provides a summary of one's financial condition; lists assets, liabilities and net worth. |
| Budget | A plan for managing money during a given period of time; consists of savings and spending. |
| Cash Flow Statement | A measure of the money you receive and the money you spend. |
| Discretionary Income | Money left over from net income after all expenses have been paid. |
| Expenditures | Cash outflows; money paid for goods and services. |
| Bank | An establishment for lending, borrowing, exchanging, and safeguarding funds. |
| Cash | Money in the form of paper and coins; currency. |
| Check | Any written document instructing a bank to pay money from the writer's account. |
| Credit | Buying or borrowing on the promise to repay at a later date. |
| Account | Money deposited with a financial institution for investment and/or safekeeping. |
| Balance | In banking, the amount in a particular account; in credit, the amount owed. |
| ATM | Automated teller machine. |
| Bond | An I.O.U. issued by a corporation or government; is repaid to the bond holder or purchaser with interest. |
| Debit | A charge deducted from an account; a sum of money |
| Interest | The fee paid for the use of money; expressed in terms of Annual Percentage Rate. |
| Depositor | An individual or company that puts money in a bank account. |
| Payer | An individual or company who writes a check; one who gives money in payment. |
| Payee | An individual or company to whom a check is written; one who receives payment. |
| APR | Annual percentage rate; the cost of credit expressed as a yearly rate. |
| Credit union | A member-owned financial institution. |
| Currency | Money; anything used as a medium of exchange; dollars and cents. |
| Principal | The original amount of money borrowed; deposited, or invested. |
| Prime Rate | An index rate that is used to determine the APR in a variable interest rate account. |
| Withdrawal | An amount of money taken out of an account. |
| Deposit | An amount of money put into an account. |
| Reconciliation | A statement showing how the checkbook balance and the bank statement were brought into agreement. |
| Service Charge | A fee a bank charges for handling a checking account. |
| Safe-deposit box | A secured area in a bank vault for storing valuables. |
| Endorsement | Written evidence (on the back of a check) that you received payment or transferred payment to someone else. |
| Check register | A separate form/booklet on which the depositor keeps a list of deposits and checks written, and the balance in the account. |
| FDIC | Federal deposit insurance corporation; protects deposited money in case of the failure of a bank. |
| Outstanding checks | Checks that have not been deducted from the bank statement balance. |
| Commercial bank | Bank that offers a full range of banking services. |
| Stop payment order | Written notice telling the bank not to pay a certain check. |
| FED | Federal reserve system; supervises and regulates member banks. |
