Personal Finance Review for CRCT 4th Quarter Emphasis Personal Finance Review for CRCT

Annual Salary The money you earn over a year, often noted in a contract

Gross Income Your earnings over a year before taxes are taken out

Gross Income

Net salary Your yearly earnings after taxes are taken out Income tax- tax percentage taken out of your Gross Income, depends on how much you earn. Higher income- higher percentage of tax rate Property tax- tax paid on the property that you own

Net salary

Interest rates Interest is the cost of purchasing the use of money, ie, borrowing. The interest rate charged by lending institutions must be sufficient to cover operating costs, administrative costs, and an acceptable rate of return

Mortgage A loan to finance the purchase of real estate, usually with specified payment periods and interest rates

Budget a quantitative statement, for a defined period of time, which may include planned revenues, expenses, assets, liabilities, and cash flows Quantitative- numbers

Human Resources are the people that staff and operate an organization They provide specific skills and Human Capital to a job

Human Resources

Marketplace Where goods and services are bought and sold

Marketplace

Consumption The use of a good or a service

Economize conserve: use cautiously and frugally; "I try to economize my spare time"; "conserve your energy for the ascent to the summit"

Barter To trade goods or services without the use of currency Often seen in traditional economies

Barter

Goods Specific made or grown items Corn, DVD player, Bass boat

Supply and Demand Supply- the availability of a good or a resource Demand- how much consumers want a specific good or service and are willing to pay for it through currency or barter

Spending and saving Debit- A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account. Credit- Purchasing power created by banks through lending based on fractional reserve system. Banks literally 'create' money with their bookkeeping entries.

Debit- Money taken out of your account

Credit Borrowing money from the bank, paying an annual or monthly interest rate for the convenience of this service