B is for Bonus
Definition: money or rewards given to an employee outside of their salary. Bonuses may be linked to employee performance, company performance, a predetermined percentage of salary or other factors.
While employees sometimes expect bonuses, the bonus itself and/or the amount are usually not guaranteed. Essentially, it’s not money you can reliably count on, like a salary; it’s outside regular agreements.
Real life example: unexpected $100 from Grandma showing up in your mailbox. It’s not your birthday, but last week she got lucky at the craps table.
The Billfold ABCs is a new feature that translates financial language into understandable concepts. Using real life examples alongside definitions and illustrations, The Billfold ABCs explains the words that we associate with money.
Previously: A is for Amortize