VOCABULARY 1
What is the financial term for the extra money that a person or company has to pay when they borrow money from a bank? It is usually a percentage of the borrowed amount.
Interest
What is saving?
Keeping money instead of spending it, usually for future use.
What does “ATM” stand for?
Automated Teller Machine
What is investing?
Putting your money into something to make more money in the future.
Scam
Dishonest plan for getting money
What do we call the total amount of money that a company earns from selling its products or services before subtracting any costs or expenses?
Revenue or Gross Income
What do we call the money you receive every month after taxes?
Net income
What is the difference between “deposit” and “withdraw”?
Deposit = put money in. Withdraw = take money out.
What is the stock market?
A place where people buy and sell stocks.
Tax evasion
The use of illegal methods to pay less tax or no tax at all
What is the term for dividing your money among different types of investments (stocks, bonds, gold, etc.) to reduce the chance of losing everything?
Diversification
Give examples for "passive income"
interest from savings, rent from apartment
What does “withdraw” mean?
Taking money out from your bank account.
What is a shareholder?
A person who owns stocks in a company.
Net worth
the value of all your property
What financial term describes the ability of a company to convert its assets into cash quickly without losing much value? It is very important for short-term financial health.
Liquidity
What is inflation and how does it affect your personal savings?
Inflation is when prices of goods and services increase over time. It reduces the purchasing power of your saved money.
What is a credit score?
A number that shows how good you are at paying back borrowed money.
What is the main difference between stocks and bonds?
Stocks = you own part of a company. Bonds = you lend money to a company or government.
A place where cars are repaired, especially after an accident
Bodyshop
What is the term for the process of spreading the cost of an intangible asset (like a patent or trademark) over its useful life, similar to depreciation but used for non-physical assets?
Amortization is the accounting practice of gradually writing off the initial cost of an intangible asset over a period of time. For example, if a company buys a patent for 10 years, it amortizes the cost each year.
What is opportunity cost?
The benefit you give up when you choose one option over another. Example: If you spend money on a new phone, the opportunity cost is the interest you could have earned if you saved that money.
What is “overdraft”?
When you spend more money than you have in your bank account.
What is the safest type of security?
The safest type of security is government bonds.
The process of becoming less valuable
Depreciation