Archive for the ‘Daily Definition’ Category

A Grant is…

Tuesday, June 23rd, 2009

A grant is a sum of money given to an individual or a nonprofit organization, usually to help finance some project. Grants do not need to be repaid.

Retirement is…

Tuesday, June 23rd, 2009

Retirement is the end of work as you know it. People usually retire when they have saved enough money to live comfortably off of their lifelong earnings.

A Tax Bracket is…

Tuesday, June 23rd, 2009

A tax bracket refers to an individual’s level of income tax. Once your income reaches a certain level, you fall into a higher tax bracket, and you have to pay a greater percentage of your income in taxes.

A Savings Bank is…

Tuesday, June 23rd, 2009

A savings bank is a bank which accepts customer deposits and funds mortgages. You can deposit checks and cash into your account, earn interest on the savings, and apply for a mortgage to buy a house.

Discretionary Income is…

Tuesday, June 23rd, 2009

Discretionary income is the portion of an individual’s income that is left after he or she has taken care of all essential expenditures, such as rent and food purchases. It’s basically the part of your paycheck or income that you’re free to use on whatever you want.

A Progressive Tax is…

Monday, June 22nd, 2009

A progressive tax is a tax system in which the more money you make, the more you pay in taxes as a percentage of your total income (this is what we do in the U.S.). For example, if someone who makes $200,000 a year pays 10% of his income in taxes and someone who makes $550,000 pays 15%, that is a progressive tax system.

The Yen is…

Thursday, June 18th, 2009

The Yen (abbreviated JPY, for Japan Yen) is the official currency of Japan and is represented using the symbol ¥.

A Loan is…

Wednesday, June 17th, 2009

A loan is an agreement between two people where you lend money or property to someone with the understanding that it will be paid back at a later date (usually with interest). People generally take out loans so they can afford large purchases – such as a house or car – or to start a business. On the other hand, people make loans as a way to earn interest on their capital (or extra funds on hand).

Principal is…

Wednesday, June 17th, 2009

Principal is the original amount of money making up a debt or investment. For example, if you take out a $10,000 loan, interest will increase your debt over time, but the principal is that initial $10,000.