BYF Book 1 Key Terms

Match the following

• Excise Tax

• regular pay, overtime, and other earnings paid to an employee before taxes or any other obligations are deducted

• Needs

• a federal, state, or local tax placed on non-essential consumer goods

• Expenses

• an itemized list of income and expenses for a given period of time; a plan for spending money

• Gross Pay

• basic survival necessities

• Budget

• outlay of money needed to pay for items, services, etc.

Match the following

• Net Pay

• the price you pay for an item divided by the quantity it contains, based on a standardized measurement

• Quality

• tax imposed by many states, counties, and cities on purchases

• Sales Tax

• the standard of something as measured against other things of a similar kind

• Unit Cost

• remaining income you take home after taxes and other deductions are made

• Total Cost

• amount spent on an item or activity that includes all associated expenditures

Match the following

• Value

• items a person desires that are not essential

• Wants

• the amount of use or benefit you get from an item

• Deposit

• money put into an account

• Account Balance

• when money is earned on the total amount in the account, including the initial deposit and interest that has already been credited to the account

• Compounding of Interest

• total amount of money that is in the account at a given point in time

Match the following

• Investing

• the process of setting money aside to increase wealth over time and accumulate funds for long-term financial goals such as retirement

• Interest

• money paid to you by the bank for being able to use your money

• Future Value

• percentage you are paid for your money

• Interest Rate

• how much a set amount of money will be worth in the future

• Discount Factor

• the amount that $1 at some point in the future is worth today

Match the following

• Withdrawal

• the value of money right now, today

• Present Value

• money taken out of an account

• Rule of 72

• a formula designed to help people estimate how long it will take to double their money at a certain expected interest rate

• Saving

• the process of setting money aside until a future date instead of spending it today

Match the following

• Account Balance

• total amount of money that is in the account at a given point in time

• Automated Teller Machine (ATM)

• a machine that allows you to perform basic banking functions without the help of a teller

• Check

• a book or document in which to record the money taken out or put into a checking account. Designed for recording checks, withdrawals, and deposits, it can be updated to fit other methods of banking and spending

• Check Register

• an account at a bank against which payments can be made based on available funds that are deposited by or on behalf of the account holder

• Checking Account

• handwritten or computer-generated order specifying the amount of money to be paid and the name of the person or company who should receive the funds

Match the following

• Minimum Balance

• the movement of funds using computer systems, telephones, electronic terminals, or smartphones

• Digital Payment Service

• stealing someone’s personal, identifying information and using it to make purchases or to get other benefits

• Identity Thef

• a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase

• Electronic Funds Transfer (EFT)

• an app or online tool that is provided by a company independent of the bank that holds your checking account

• Debit Card

• the amount of money that must be kept in an account to avoid service charges, qualify for special service, or earn interest on a checking account

Match the following

• Near-Field Communications (NFC)

• a short-term loan provided by a credit card issuer in the form of cash through the use of an ATM or bank

• Annual Percentage Rate

• the average amount owed on the credit card for each day of the billing cycle, calculated by adding up each day’s ending balance and then dividing by the total number of days

• Average Daily Balance

• the amount of money the credit card issuer charges for having the credit card account each year

• Annual Fee

• technology that allows two devices to “speak” to each other when they come into close range. It is the basis for services that allow one to pay with a smartphone simply by waving a device over a receiver at the register

• Cash Advance

• the yearly interest rate paid on the credit card balance

Match the following

• Credit Card

• monies borrowed using a credit card

• Charge

• the maximum amount of money that the credit card issuer will allow you to charge

• Credit Limit

• the ability to make purchases with the promise that the money will be repaid later

• Daily Finance Charge

• a card that allows the cardholder to repeatedly purchase products and services on credit. Most credit cards have credit limits and monthly minimum payments, but users are allowed to carry an outstanding balance from month to month

• Credit

• the interest rate you pay each day on the outstanding balance

Match the following

• Interest Rate

• the percentage paid on the money one has charged

• Late Fee

• the least amount one can pay on the card and still keep your account in good standing; typically, a percentage of the outstanding balance or some pre-set minimal amount if the balance is low

• Finance Charge

• a penalty charged for not making the required minimum payment by the due date

• Minimum Payment

• the interest payment owed on the credit card balance