Take-home Pay
This is the name given to the money you actually get paid after deductions such as income tax and National Insurance contributions.

Tax - this period
You find this on your payslip. It tells you how much income tax you have to pay this pay period. It is worked out from tables using your tax code.

Tax code
This code tells your employer how much tax-free pay to give you each pay period.

Tax year
The tax year runs from 6 April one year to 5 April the next year. Taxes, such as income tax, are worked out over this period.

Taxation - local
You may pay local taxes to your council. These taxes include the Council Tax which is used to pay for local services such as libraries and the police.

Taxation - national
You are taxed in a variety of ways including:
by paying income tax on your wages.
by paying VAT when you buy certain goods and
by paying the road fund licence for a car.

These taxes are used to pay for services, which benefit everyone such as the National Health Service, the armed forces and education.

Term of the loan
This refers to the time you have to pay back a loan. Generally, the longer the period you borrow the money for, the lower the interest rate. But this will still add up over the time that you are paying the money back.

Third-party insurance
Third-party car insurance means that your insurance company will pay out if you accidentally cause injury to another person or damage their car. Adding in 'fire and theft' means that your car is covered if it is stolen or damaged by fire. However, any damage you do to your car, or injury you do to yourself, is not covered.

Total deductions
On a payslip this is the total amount that will be taken from your gross pay. What is left after this is your take-home pay.

Transaction
This is any payment into or out of your account.

Travel insurance
When you travel abroad you may want to take out travel insurance. Many countries will not treat you if you have an accident or fall ill unless you can pay, and medical bills can be extremely expensive. Some travel insurance policies will cover such events as the cost of flying you home if necessary, and giving you money for lost luggage or cancelled flights. As with all insurance policies, it is important to understand exactly what is covered.

U

Unsecured loan
An unsecured loan means the lender relies on you to pay the money back. They do not use anything you own as security. But, you can be taken to court and end up having to pay back the money. Your 'credit rating' may also be affected if this happens - this means that most financial companies will refuse to lend you money.

Utility bills
These are the bills for electricity, water, gas and phone.

W

Withdraw
If you withdraw cash, you take it out of your account.

Working Families Tax Credit
The Working Families Tax Credit is a way for working parents to claim financial support from the Government. The amount of help you can get depends on your income, how many children you have and whether you have to pay for childcare. You can find out more about the Working Families Tax Credit from your local Benefits Agency office, New Deal adviser, job centre or tax enquiry office.

Y

Your credit history
If you have had trouble paying loans before, or if you have any court judgements against you, this will be recorded in your credit history. If you apply for a loan, this will be checked and you may find that if lenders are willing to lend you money, they will charge you very high interest rates.

If you have had trouble paying loans before, or if you have any court judgements against you, this will be recorded in your credit history. If you apply for a loan, this will be checked and you may find that if lenders are willing to lend you money, they will charge you very high interest rates.