Economics Definitions

Related to money, this is the money that you make.

• Income

• Expense

• Credit

• Save

Related to money, this is the money that you spend.

• Income

• Expenses

• Credit

• Spend

Something you do with money you’ve earned. The goal is to have more money in the future than you do now.

• Save

• Invest

• Spend

• Borrow

Something you do with money you’ve earned. The goal is to have the same amount of money in the future as you do now.

• Save

• Spend

• Invest

• Interest

Something you do with money you’ve earned. The goal is to trade having less money in the future in exchange for having something (stuff, services, etc) now.

• Save

• Spend

• Invest

• Borrow

Related to budgets, this means that you have the same level of income as you have expenses.

• Balanced

• Surplus

• Deficit

• Debit

Related to budgets, this means that you have more income than you have expenses.

• Surplus

• Deficit

• Balanced

• Borrow

Related to budgets, this means that you have less income than you have expenses.

• Save

• Balanced

• Deficit

• Surplus

Related to borrowing, this means that you’re paying with money you already have and it’s coming straight out of your account.

• Credit

• Debit

• Debt

• Deficit

Related to borrowing, this means that you’re paying with someone else’s money that you promise to pay back.

• Credit

• Debit

• Deficit

• Debt