Using money wisely and effectively to meet your obligations and priorities

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.

Salary – The amount of money a person earns

per year. Rate of pay/Wage – The amount of money a person earns

per hour.

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.

PAYROLL CLERK: Organizing, printing, labeling and

distributing every student’s paycheck

Money management – Using money wisely and effectively to meet

your obligations and priorities

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.

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

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

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

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

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

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)

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

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

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

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

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

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

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

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