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Money Matters Terms and Definitions |
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Budgeting |
the responsible management of money Parents often have a budgeting plan for a child's wedding. |
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Debt |
an amount of money that is owed people accumulate debt by using credit cards for items they can't afford. |
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Expenses |
products and services that money is spent on Your personal expenses may include rent, food, and utilities. |
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Income |
money earned or received from other sources The IRS (Internal Revenue Service) requires you to report your income on your tax form. |
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Insurance |
protection against damage, loss, theft, and other adverse situations You must have car insurance to drive in Massachusetts. |
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Loan |
money that is borrowed and must be paid back. He took out a loan from the bank to pay for his new car. |
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Mortgage |
long-term loan secured by property such as buildings or land Most people use a mortgage to buy their first house. |
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Rent |
a payment made for the use of leased property Every month she has to mail her rent check to the landlord. |
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Salary |
earned income The employee asked his boss for a raise in salary. |
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Tuition |
money or fees required to attend educational institutions Private universities usually charge higher tuition than state schoolsy. |
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Utilities |
resources such as electricity, heat, water for a home or business Some utilities such as a phone may have a fixed monthly rate |
