1. Unit 03: Financial Literacy Vocabulary

2. Available Balance The amount available in an account for a person, business, or organization to spend. How much cash do you have in the bank to spend?

3. Balance To make sure you spend no more than you earn, you reconcile your budget.

4. Budget A monthly or yearly spending and savings plan for an individual, family, business, or organization.

5. Check A written document telling the bank to pay a specific amount of money from your account to a specific person or organization.

6. Credit Card A card that can be used to borrow money from financial institutions, stores, or other businesses in order to buy products and services on credit.

7. Debit Cards A card that is linked to your checking account so that pa person can withdraw money, make deposits, or make purchases at a store.

8. Electronic payment (e-payment) Payments using the security features on the Internet.

9. Expenses Payments for goods and services.

10. Financial records A formal record of the transactions made by a person, business, or other organization.

11. Income Money earned or received.

12. Income Tax Money paid on the earned wages of an individual or business for the federal and/or state governments as required by law.

13. Net Income The income that remains after taxes and other deductions are taken from an individual’s gross income. The total amount of personal income prior to taxes and deductions. How much you earn from your job. Gross Income Deductions Money you have to pay to the government. Taxes Health insurance Medicare Social Security

14. Payroll tax The amount of money that a company withholds from its employees for the federal government as required by law.

15. Property Tax The amount of money collected on the value of a property for a local government as required by law.

16. Register A small table to track deposits added to account, expenses withdrawn from account, and current available balance.

17. Sales Tax The amount of money collected by a store (retailer) in addition to a good or service that was purchased, for the local government as required by law.

18. trans ACTION A specific time or instance when money changes hands.