1. Personal Finance Review for CRCT
4th Quarter Emphasis
Personal Finance
Review for CRCT

2. Annual Salary
The money you earn over a year, often noted in a contract

3. Gross Income
Your earnings over a year before taxes are taken out

4. Gross Income

5. Net salary Your yearly earnings after taxes are taken out
Income tax- tax percentage taken out of your Gross Income, depends on how much you earn.
Higher income- higher percentage of tax rate
Property tax- tax paid on the property that you own

6. Net salary

7. Interest rates
Interest is the cost of purchasing the use of money, ie, borrowing. The interest rate charged by lending institutions must be sufficient to cover operating costs, administrative costs, and an acceptable rate of return

8. Mortgage
A loan to finance the purchase of real estate, usually with specified payment periods and interest rates

9. Budget
a quantitative statement, for a defined period of time, which may include planned revenues, expenses, assets, liabilities, and cash flows
Quantitative- numbers

10. Human Resources are the people that staff and operate an organization
They provide specific skills and Human Capital to a job

11. Human Resources

12. Marketplace
Where goods and services are bought and sold

13. Marketplace

14. Consumption
The use of a good or a service

15. Economize
conserve: use cautiously and frugally; "I try to economize my spare time"; "conserve your energy for the ascent to the summit"

16. Barter To trade goods or services without the use of currency
Often seen in traditional economies

17. Barter

18. Goods
Specific made or grown items
Corn, DVD player, Bass boat

19. Supply and Demand Supply- the availability of a good or a resource
Demand- how much consumers want a specific good or service and are willing to pay for it through currency or barter

20. Spending and saving
Debit- A debit may be an account entry representing money you owe a lender or money that has been taken from your deposit account. Credit- Purchasing power created by banks through lending based on fractional reserve system. Banks literally 'create' money with their bookkeeping entries.

21. Debit-
Money taken out of your account

22. Credit
Borrowing money from the bank, paying an annual or monthly interest rate for the convenience of this service