Money and Banking Terms
This type of account is designed for saving money and typically earns interest over time.
Savings account
This is a financial plan that helps you manage your income and expenses
Budget
This concept compares the chance of losing money to the potential profit from an investment
Risk vs Reward
This is the process of putting money into assets like stocks or businesses to earn a profit over time
Investment
This is something valuable that a person or company owns or controls
Asset
This account is primarily used for managing everyday transactions, such as sending and receiving payments.
Chequing Account
This is the money set aside to cover unexpected expenses like medical bills or car repairs
Emergency fund
This is the collection of all your financial assets, like stocks and bonds
Portfolio
This strategy helps reduce loss by spreading money across different investments
Diversification
This is a financial obligation or debt that a person or business is required to pay
Liability
This is the extra amount a borrower must pay a lender for using their money, often expressed as a percentage.
Interest
This term describes the movement of money into and out of a business or personal finances
Cash Flow
This type of security represents ownership in a company and a claim on its earnings
Stock
This is a payment a company gives to its shareholders, often in cash, as a reward for owning its stock
Dividend
This contract helps protect you financially in case of any potential losses or risks
Insurance
This agreement allows you to borrow money up to a limit and repay it later
Credit
This is the difference between your assets and liabilities
Net Worth
This is the profit you earn when you sell an asset
Capital Gain
This fund holds a collection of assets and trades on the stock market like a single stock
ETF (Exchange Traded Fund)
This is the general rise in prices over time
Inflation
This is the original amount of money borrowed in a loan
Principal
This is the money you have left after paying taxes
Disposable Income
This is an investment made by pooling money from many investors to buy different assets
Mutual Fund
This is a type of loan where you lend money to a company or government and get paid back with interest
Bond
This is the ability to understand and manage money through skills like budgeting and saving
Financial Literacy