Net income refers to the cash value of a paycheck after deductions. Gross income — your pay before deductions — starts with your wages for the pay period. For salaried workers, this equals your annual base salary divided by the number of pay periods in the year. Hourly workers’ gross income equals their hourly wage multiplied by hours worked, plus any overtime pay. Additional income from nonemployment sources may adjust the gross amount. Deductions can be pretax, tax or after-tax. Net income is your actual take-home pay after all adjustments.

Your net worth refers to how much more your assets are worth than your liabilities. In short, your net worth is how much money you would have if you sold everything you own and used the proceeds to pay off your debts, explains personal finance blogger Trent Hamm in the Christian Science Monitor. If the money wouldn’t be sufficient to pay off all your debts, you have a negative net worth.

Overdraft protection is a service offered by banks that issues you a short-term loan when you make a purchase with your debit card or write a check for more than your balance. However, the service comes at a cost, and it can sometimes be far more expensive than having the purchase denied.

Renting versus buying refers to the decision that people have to make when deciding where to live. The question has different answers for different people, and there’s more than just financial considerations to think about when making your decision. Renting can be less expensive up front, but owning may cost you less of the long term.

Savings refer to money you put aside for future use rather than spending it immediately. In addition to the benefits of saving up for future purchases, delaying an impulse purchase also helps you decide whether it is something you really need, or a waste of money you will regret shortly after buying.

Severance pay refers to payments made by an employer when employees are laid off or accept voluntary early retirement. Usually, you won’t receive severance pay if you quit or are fired for cause, but there are exceptions.

“Vesting” refers to the process by which you become the owner of the employer contributions to your retirement plan.