Money Basics
The money you earn, often from a job.
What is income?
A bank account used for everyday transactions like paying bills.
What is a checking account?
A type of savings account that typically offers higher interest rates than a regular savings account and may require a higher minimum balance.
What is debt?
Putting money aside for future use, often for short-term goals.
What is savings?
Extra money you pay when borrowing money, or money you earn from saving, usually shown as a percentage.
What is interest?
The money you spend on things you need or want.
What is an expense?
A bank account that typically earns interest and is used for storing money you don't need immediately.
What is a savings account?
This allows you to borrow money with the promise to repay it later, usually with interest.
What is credit?
The act of putting money into something (like stocks or bonds) with the expectation of earning a profit.
What is investing?
The original amount of money borrowed in a loan or put into an investment
What is the principal?
A plan that outlines your expected income and how you will save or spend it
What is a budget?
When you spend more money than you have in your bank account, often resulting in a fee.
What is an overdraft?
A payment card that creates a loan, requiring you to pay back the purchase amount plus interest.
What is a credit card?
A small unit of ownership in a company.
What is a stock?
Anything that has value and is owned, like a house or a car.
What is an asset?
Having the knowledge and skills to manage your money effectively.
What is financial literacy?
The electronic transfer of a payment, like a paycheck, directly into a bank account.
What is direct deposit?
A numerical expression representing your creditworthiness, influenced by payment history and amounts owed.
What is a credit score?
A type of investment where you loan money to a government or company, and they pay you interest.
What is a bond?
An increase in the value of an asset over time.
What is appreciation?
The value of all assets you own, minus your total liabilities
What is net worth?
A type of savings account that typically offers higher interest rates than a regular savings account and may require a higher minimum balance.
What is a money market account?
An asset you pledge as security for a loan; it can be seized if you fail to repay
What is collateral?
This is the addition of interest to the principal sum of a loan or investment, allowing money to grow faster.
What is compound interest?
This is a profit from selling an investment for more than you paid for it.
What is a capital gain?