← Glossary/Finance
Net Pay
FinanceSource: Standard payroll / personal finance
Net pay equals pay received after anything taken off is removed.
Example
A payslip starts at $100 and takes off $15. The net pay is $85. That is the amount that reaches the wallet.
How it fits in
Net pay is the number a budget can actually use. Gross salary shows the starting point. Deductions explain the difference. Net pay shows what is available for commitments, saving, and spending.
Where this is taught
Practise it on the platform
Related terms
Compound Interest
When the money you earn from saving starts earning its own money on top.
Simple Interest
Interest paid only on the original amount, never on the interest you have already earned.
Needs vs Wants
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.