Money VocabularyBy: Ben Segarra

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.

Debit: an entry recording an amount owed, listed on the left-hand side or column of an account.Interest: a share, right, or title in the ownership of property, in a commercial or financial undertaking, or the like:

Interest: a share, right, or title in the ownership of property, in a commercial or financial undertaking, or the like:

Gross Pay: The total of an employee’s regular remuneration including allowances, overtime pay, commissions, and bonuses, and any other amounts, before any deductions are made.

Net Pay: Portion of a salary or wages that an employee actually gets (takes home) after paying all deductions and taxes.

Fixed Expenses: Largely same as fixed costs, except that non-cash items such as depreciation and depletion are not included.

Variable Expenses: An expense that can be traced directly to (or identified with) a specific cost center or cost object such as a department, process, or product.

Consumable Goods: are capable of being consumed; that may be destroyed, dissipated, wasted, or spent

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

FICA or 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—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

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.

Discretionary expenses: cost which is not essential for the operation of a home or a business

Budget: an estimate of income and expenditure for a set period of time.

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

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

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.