This document defines key money and financial terms including: - Credit, which is the ability to obtain goods or services before payment based on future payment. - Debit, which is an amount owed listed on the left side of an account. - Interest, which is money paid regularly for the use of money lent or delaying debt repayment. - Gross pay and net pay, with gross being total pay before deductions and net being take-home pay. - Fixed and variable expenses, with fixed not changing with production and variable changing with production levels. - Consumable and durable goods, with consumables able to be consumed and durables kept long-term. - A mortgage, which is

1. MONEYVOCABULARY
By: Barrett Cameron

2. 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.

3. Debit
An entry recording an amount owed, listed on the
left hand side or column of an account.The
opposite of credit

4. Interest
Money paid regularly at a particular rate for the use
of money lent, or for delaying the repayment of a
debt.

5. Gross Pay
Gross pay is the total amount of money you get
before taxes or other deductions are subtracted
from your salary.Your gross income or pay is
usually not the same as your net pay.

6. Net Pay
Net pay is the amount of wages that employees
actually take home. In other words, net pay is the
amount of money on each employee paycheck.

7. Fixed Expenses
Fixed expenses or costs are those that do not
fluctuate with changes in production level or sales
volume.

8. Variable Expenses
Variable costs are those costs that vary depending
on a company's production volume; they rise as
production increases and fall as production
decreases.

9. Consumable Goods
Consumables also known as consumable goods,
nondurable goods, or soft goods are goods that,
according to the 1913 edition of Webster's
Dictionary, are capable of being consumed.

10. Durable Goods
Goods not for immediate consumption and able to
be kept for a period of time.

11. FICA
Federal Insurance Contributions Act (FICA) tax is a
United States federal payroll (or employment) tax
imposed on both employees and employers to
fund Social Security and Medicare

12. Salary
A fixed regular payment, typically paid on a
monthly or biweekly basis but often expressed as
an annual sum, made by an employer to an
employee, especially a professional or white-collar
worker.

13. Discretionary Expense
A discretionary expense is a cost which is not
essential for the operation of a home or a business.

14. Budget
An estimate of income and expenditure for a set
period of time.

15. Credit Score
A number assigned to a person that indicates to
lenders their capacity to repay a loan.

16. Financial Institution
An establishment that focuses on dealing with
financial transactions, such as investments, loans
and deposits.

17. Mortgage
The charging of real (or personal) property by a debtor to
a creditor as security for a debt (especially one incurred
by the purchase of the property), on the condition that it
shall be returned on payment of the debt within a certain
period.