💵 Money and Banking Terms
Bank Account
A place where your money is kept at a bank, you can deposit and withdraw funds.
Budget
A plan that shows how much money you earn and how you’ll spend or save it.
Investment
Putting money into something (like stocks) with the hope of making more money.
Asset
Something valuable you own, like a house or car.
Credit
Borrowed money you agree to pay back later.
Savings Account
A bank account that earns interest and is used to save money for the future.
Income
Money you earn from work, investments, or other sources.
Risk Vs reward
Higher risk can mean higher reward, but also bigger losses.
Liability
Something you owe, like a loan or credit card debt.
Debit
Money taken directly from your bank account when you buy something.
Chequing Account
A bank account used for daily spending; you can write cheques or use a debit card.
Expenses
What you spend your money on (e.g. rent, food, bills
Portfolio
A collection of all your investments.
Equity
The value you own in something after subtracting what you owe (e.g. home value minus mortgage).
Loan
Money you borrow and must repay with interest.
Interest
The cost of borrowing money, or the money you earn when you save.
Discretionary income
The money you have left after paying taxes.
Stock
A share in the ownership of a company
Insurance
A service you pay for that protects you financially from accidents, damage, or loss.
Mortgage
A loan specifically used to buy a home.
Principal
The original amount of money borrowed or invested, not including interest.
Emergency Fund
Money set aside to cover unexpected costs (like car repairs or medical bills).
Bond
A loan you give to a company or government that pays you back with interest.
Retirement Planning
Preparing and saving money so you can live comfortably after you stop working.
Credit Score
A number that shows how reliable you are at paying back borrowed money.