Money Matters Glossary of Terms

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Automated-Teller Machine (ATM): An electronic banking machine that allows customers to perform certain bank services. People with bank accounts (like checking and savings) can use ATMs to do things like withdraw money or make deposits to and from their accounts. – “The ATM always gives my mom a receipt to show her how much money is left in her account after she makes a withdrawal.”

Balance: The balance of a bank account is the amount of money in it after deposits, withdrawals, transfers, and other transactions have taken place. – “I always make sure I know the balance in my bank account so I don’t accidentally use more money than I have.”

Bank: A place where customers (people, businesses) can keep and store their money in a safe way, often while earning interest. A bank is also a place where customers can borrow money, in exchange for paying interest. – “Whenever I get a paycheck, I put it in the bank right away.”

Borrow: To take something with the promise of returning it. When we borrow money from the bank, we usually return it by paying it back in smaller amounts over time. In exchange for letting us borrow the money, the bank charges interest on it. – “My aunt borrowed money from the bank to buy a new car. Now she pays back a little every month with interest.”

Budget: An overview of how much money a person has, and the needs and expenses they must from that money. A budget can help a person know how much money they have leftover for savings or wants after their needs and expenses are taken care of. – “Our family’s budget allows us to go to the movies two times every month.”

Cash: Paper money and coins. – “My mom gave me a $5 bill, so I paid for my lunch with cash.”

Check (or Cheque): A written instruction telling a bank to pay a certain person or business a specified amount of money. The payment made in a check is deducted from the account of the person who wrote it. It must include that person’s signature. – “Instead of cash, my grandparents sent me a $20 check for my birthday.”

Checking Account: A type of bank account where people deposit money and then can write checks to make payments using the account’s funds. – “When my sister moved out of the house, she opened up a checking account to deposit all the money she made and pay all of her bills.”

Credit Card: A card that is issued to a customer by a bank, which allows that person to pay for items by borrowing money that they will pay back. – “I always pay my credit card bill right away, so that I’m not charged interest for borrowing money.”

Debit: A transaction that takes money out of a bank account, such as a cash withdrawal or a check payment. – “Every month I review the debits on my bank account to make sure there aren’t any errors.”

Debit Card: A card that looks exactly like a credit card, but instead of paying for things with borrowed money that must be paid back, it pays for things by deducing their cost directly from the buyer’s checking account. A debit cards works almost exactly like a check, except it makes a payment with an electronic card rather than a paper slip. – “I didn’t have my checkbook, so I paid with my debit card instead.”

Deposit: As a verb, it means the act of putting money into a bank account. As a noun, it refers to the money that is put into a bank account. – “I always deposit my birthday money into a savings account at the bank.”

Economics: Subject areas dealing with the exchange of goods and services, like the things people need and want, how people produce and get those things, how much of it they have, and how they’re able to get those amounts. – “I thought about the economics of my idea before opening a lemonade stand.”

Expense: The cost of an item, or, something on which you spend money. – “Food are rent are two expenses that I have to put first in my budget.”

Goods: All items are goods. Anything from paperclips to yachts to cans of tomatoes are goods. Goods, together with services, form the basics of all economics! – “Farmers make money by selling goods, since everyone needs to buy food.”

Income: Money paid in exchange for goods and services. – “I make more income when I work full-time hours at my job.”

Interest: A fee charged for borrowing money. – “I always think carefully before borrowing money because I know I will have to pay interest.”

Investment: Something likely to increase in value, purchased with the idea of making money in the future. – “Buying a house is a good investment, because property almost always increases in value.”

Lend: To give something to another person on the condition that it be returned in the future. – “The bank will lend me the money I need, but I’ll have to pay interest on the money I borrow.”

Loan: The term for the money lent by a bank to a borrower, including interest that will be charged on the money. – “My cousin took out a loan to help him pay for college, and now he’s repaying the amount he borrowed plus interest.”

Money: Something everyone deems valuable and worthy of accepting for a trade, often used to help in the exchange of goods and services. – “The builder didn’t want the farmer to pay him in vegetables, so the farmer paid him with money instead.”

Needs: Something essential we must have for survival, such as food, clothing, and shelter. – “When writing out my budget, I have to make sure I take care of all my needs before spending money on wants.”

Overdraft: When a checking account holder pays out more money (such as by check or debit card) than they have available in the account. The bank usually charges the account holder a fee for this problem. – “To avoid an overdraft, I’m very careful about adding up the balance in my checking account and never spending more than I have.”

Savings: Money that is put away for use in the future. – “Half of my allowance goes towards savings, so I can have money for big or important things in the future.”

Savings Account: A bank account where a customer can store and save money. Banks usually pay interest to customers with savings accounts. – “Instead of saving money in a piggy-bank, I put it in a savings account where it’s safe and able to earn interest.”

Services: Things that people do are services. Anything from working as a nurse to driving a truck to being a firefighter to fixing computers – all of these jobs are types of services. Services, together with goods, form the basics of all economics! – “People who provide services, like a plumber who fixes a leak, can be paid with a trade, such as money.”

Value: How much something is worth. – “As they get older, my collectible dolls will increase in value.”

Wants: Something that isn’t essential to survival, but which we would like to have if we can. – “I don’t need a new stereo, but I’m putting away money in my savings because I really want one.”

Withdraw: To take money out of a bank account. – “I have to withdraw money from my checking account so I have some cash to spend.”

Posted by  angela7  on 2011-04-10 23:29:56  

>>>gr8 list, thnx>>>!!!