1. Personal Finance Vocabulary
Income – money that comes in from work, or investments.
Occupation – work a person does to earn a living
Wage – hourly rate of money paid for work
Salary – yearly amount of money paid for work.
Gross pay – total amount of paycheck BEFORE deductions are taken out.
Net Pay – amount of paycheck AFTER deductions are taken out.

2. Spending – pay out money for a good or service
Needs – things that are essential like clothing, shelter, or food.
Wants – things that are non-essential that are desired.
Opportunity cost – what you give up in order to get something else.
Personal budget – a plan for how to spend your income.
Fixed expenses – amount of cost that stays the same.
Variable expense – amount of cost that changes depending on
circumstances.

3. Credit – a promise to pay later
Debt – something owed to another
Short term goals – something you want to accomplish pretty quickly
Long term goals – something you want to accomplish over time
Interest – money paid for the use of money – usually a percentage
Risk – chance of loss
Reward – return made for something done