1. Using money wisely and effectively to meet your obligations and priorities

2.  Income –  Money that is earned through work, gifts and other sources.  Paycheck –  The paper statement that supplies the necessary information about your earnings and gives you the ability to exchange for cash.

3.  Salary –  The amount of money a person earns per year.  Rate of pay/Wage –  The amount of money a person earns per hour.

4.  Gross income –  Amount of money earned before any deductions are subtracted.  Deduction –  Money taken from gross pay to cover specific obligations.  Net income –  The money you have left over after deductions are taken – this is what you have available to spend or save.

5.  PAYROLL CLERK:  Organizing, printing, labeling and distributing every student’s paycheck  Money management –  Using money wisely and effectively to meet your obligations and priorities

6.  Bank/Credit union –  A federally insured institution that will keep your money safe - many services are provided.  Cash-on-hand –  This is the most accessible, easily spendable way to handle your money.

7.  Savings account –  A safe investment that will increase in value at a small rate (class – 10%)  Checking account –  Nearly as flexible as cash (class – no interest)  Transaction –  An exchange between the customer and the bank or store

8.  Deposit –  Putting money into a bank  Withdrawal –  Taking money out of a bank account  Transfer –  Moving money from one place to another  Endorse –  Signing your name on the back of a check that you want to cash

9.  Balance –  How much money is left in a bank account  Statement –  A notice that shows a record of a person’s bank account  Bounced/cancelled –  When you don’t have enough money in your account to pay for a check you have written

10.  Investment –  Putting money into an account with the intention of increasing its value  Profit –  Making more money than when you started  Loss –  Making less money than when you started

11.  Interest –  Money added to your accounts as a bonus for keeping it there  Stock –  Shares of ownership in a company  Bonds –  A government investment – shares of the government

12.  Mutual fund –  An investment with risk involved; it may increase or decrease in value (class – roll the dice for interest rate)  Certificate of deposit – CD –  A minimum investment must be made (usually $500.-$1,000.) but the interest rate is higher. You may not have access to the money for a length of time (3 mos, 6 mos, 1 yr)

13.  Banker –  Will keep records of each student’s bank account, cash paychecks, make change, process deposits, transfers and withdrawals  Investment Broker –  Will record all investment, keep records of all transactions, collect and distribute money, calculate interest

14.  Social security/FICA -  Federal program that provides income to those people unable to work - (stands for Federal Insurance Contributions Act)  Dependents –  The people you support with your salary  Taxes –  Money obligated to the government – state, federal, or local

15.  Federal tax –  Paid to the US government (class – 30% of gross pay)  State tax –  Paid to the state government (class – 10%)  Local tax –  Paid to local government  School tax –  Paid to local school district

16.  Bill –  Money that is owed, a payment for goods, privileges or services  Late fee/charge –  Extra penalty money owed when bills are not paid on time  Debt –  To be under obligation to repay money to someone

17.  Loan –  Money lent for temporary use – usually a large amount  Collateral –  Giving something to secure your loan – a type of “insurance” to the person who loans the money Credit –  When you buy something now and pay for it later  Credit history –  Reveals if you have paid your debts on time or not

18.  Minimum payment –  A percentage of the total balance you must pay each month  A.P.R. –Annual percentage rate –  The cost of your credit as a yearly rate  Fixed rate –  An interest rate that is preset and does not change  Variable rate –  An interest rate that can change periodically

19.  Insurance –  Financial protection against unfortunate events  Tax Collector –  Calculates federal & state taxes, collects money and records all transactions  Bill Collector –  Collects all monies from students for bills, incentives and purchases; records & gives receipt for transactions

20.  Authority –  Watches for infractions, writes bill to offender & follows through on payment of each bill  Insurance Agent –  Provides safety insurance every payday; keeps records of all transactions  Capitalist –  Sells items in class, decides market value of items, writes out receipts for each item sold; coordinates lottery, game show or other activities