Personal Finance Vocabulary

essential expense

• an agreement between you and a lender that allows you to borrow money to purchase a home

• expenses which stay the same from month to month, such as housing and car payment

• expense that cannot be eliminated from a person's day-to-day life; might include housing payments, utility bills, medical expenses, or food

• something you would like to have, but is not necessary to live

budget

• a person's knowledge and work skills

• plan for how to manage your money

• money that you earn

• cost of borrowed money, usually expressed as a percentage

interest

• committing money in the hope that it will make more money over time

• a sum paid or charged for the use of money or for borrowing money or a percent that you earn for having money in a savings account

• expense that cannot be eliminated from a person's day-to-day life; might include housing payments, utility bills, medical expenses, or food

• something you would like to have, but is not necessary to live

fixed expense

• an agreement between you and a lender that allows you to borrow money to purchase a home

• expenses which stay the same from month to month, such as housing and car payment

• money that is available quickly such as cash

• setting aside income for a period of time so that it can be used later

personal finance

• a person's knowledge and work skills

• the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future

• money that you earn

• cost of borrowed money, usually expressed as a percentage

variable expense

• an agreement between you and a lender that allows you to borrow money to purchase a home

• expenses which stay the same from month to month, such as housing and car payment

• an expense that changes from month to month, such as food or electricity

• setting aside income for a period of time so that it can be used later

mortgage

• an agreement between you and a lender that allows you to borrow money to purchase a home

• something, typically money, that is owed or due

• money that is available quickly such as cash

• setting aside income for a period of time so that it can be used later

spending

• using money to purchase goods and services

• the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future

• the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future (borrowing)

• cost of borrowed money, usually expressed as a percentage

debit card

• committing money in the hope that it will make more money over time

• a sum paid or charged for the use of money or for borrowing money or a percent that you earn for having money in a savings account

• a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

• type of card issued by a bank that allows users to finance a purchase.

saving

• using money to purchase goods and services

• the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future

• the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future (borrowing)

• setting aside income for a period of time so that it can be used later