Financial Literacy Terms Vocab Test

the total amount of money you earn before any deductions are taken out

also known as take-home pay, this is the amount left over after all deductions are subtracted

costs that stay the same each month

costs that change depending on your choices or usage

money spent on "wants" rather than "needs"

money taken out of your pay for things like federal and state income taxes, Social Security, and Medicare

money received from work, gifts, or interest

money spent on either needs or wants

when income is higher than expenses

when expenses are higher than income

the money earned on money deposited in a savings account, or the cost of borrowing money

a place where you can store your cash safely while earning interest

earns higher interest and is designed to help your money grow faster

a savings product where you deposit money for a fixed period at a guaranteed interest rate; you agree not to withdraw the money until the term ends

an account designed for frequent deposits and withdrawals, used for paying bills and everyday transactions

a charge for when you withdraw more money than you have in your account

filled out when you add cash or checks to your account

an official summary of all transactions in your account over a specific period (usually one month)

when you put money into your bank account

when you take money out of your bank account

the person or business to whom a check is written

used to write a brief note about what the payment is for

a series of numbers that identifies your specific bank

a unique series of numbers that identifies your personal bank account

your signature on a check that allows it to be deposited or cashed

the written numbers in the box on a check

the dollar amount in words and the cents as a fraction

a written document that orders a bank to pay a specific amount of money from your account to a named person or business

a record book or log where you write down all transactions made to track your checking account balance

the process of verifying that your records match the transactions on your bank statement

a card linked to your checking account that allows you to make purchases or withdraw cash directly from your account

a card that allows you to borrow money to make purchases

the concept of borrowing money with the agreement to repay it later, often with interest

a three-digit number that represents your creditworthiness based on your borrowing and payment history