Money Management Key Terms

Money Management Paycheck Key Terms

Money that you get; usually from a job Income Money that you get; usually from a job

Deduction An amount of money taken from an employee’s gross pay for taxes, insurance, social security, or other benefits

Income Tax The part of earnings that people must legally give to the government to pay for government services

The part of the paycheck that lists deductions from salary Check Stub The part of the paycheck that lists deductions from salary

Gross Pay The total amount of an employee’s earnings before deductions are taken out

Net Pay The amount of a paycheck after deductions are taken out (sometimes referred to as take home pay)

Money Management Budgeting Key Terms

Expenses Things you pay for each month with your income (Example: food, clothing)

Expenses that are the same each month (Example: rent) Fixed Expenses Expenses that are the same each month (Example: rent)

Variable Expenses Expenses that are not the same each month, they fluctuate (Example: clothing)

Money Management Checking Key Terms

Checking Account A bank account that you use with checks and/or debit card. Money is taken out of this account when you write a check or use your debit card.

Check A written order directing the bank to pay money as instructed by you to take money out of your account

To sign the back of a check before cashing Endorse To sign the back of a check before cashing

Ledger/Check Register Your record of your account

Money available in your account Balance Money available in your account

A check written for more than the amount in your account Bounced/Bad A check written for more than the amount in your account

A written order directing the bank to put money into your account Deposit A written order directing the bank to put money into your account

When you take money out of your savings or checking account Withdraw When you take money out of your savings or checking account

Automated Teller Machine; acts as a bank teller usually open 24 hours ATM Automated Teller Machine; acts as a bank teller usually open 24 hours

Debit Card Plastic card with a magnetic strip that accesses your account when the proper PIN number is given. Money is taken directly out of your account

A plastic card allowing you to purchase merchandise with future money Credit Card A plastic card allowing you to purchase merchandise with future money

Savings Account A bank account that you deposit money into. Interest is earned on the money that is in the account.