Savings and Investment Vocabulary

An IOU issued by a company, municipality, or the federal government in exchange for a loan from an investor that will be repaid with a set rate of return

• bond

• stock

• savings account

A business that provides money-related services.

• stock market

• financial institution

• local government

A fee received or paid for the use of money.

• savings

• bond

• interest

• tax

To commit money to gain a profit or earn interest.

• sell

• buy

• invest

• tax

To automatically save a specified amount from a paycheck for future use.

• tax

• pay yourself first

• invest

• spend

A collection of stocks or bonds of various corporations.

• savings account

• retirement account

• mutual fund

• stock market

The next best alternative given up when making a financial choice.

• pay yourself first

• opportunity cost

• financial institution

• interest

The amount of money originally invested

• principal

• taxable amount

• interest

• stock

The possibility of financial loss or physical harm.

• investment

• interest

• bond

• risk

An interest-bearing account where people put money for future use.

• stock

• savings account

• principal

• bond