Financial Literacy Terms

Things you must have to survive

• Wants

• Desires

• Needs

• Preferences

Things you would like to have to raise your standard of living

• Needs

• Wants

• Essentials

• Desires

Fee paid for the use of borrowed money

• Principal

• Interest

• Dividend

• Fee

A fee paid when you pay a bill after the due date

• Late Fee

• Early Payment Discount

• Service Charge

• Processing Fee

The amount of money you earn. This can come from a job or investments. It is limited.

• Revenue

• Income

• Profit

• Earnings

Money earned per hour in exchange for your physical or mental labor

• Salary

• Wage

• Commission

• Bonus

Fixed amount of money earned per day, month, or year in exchange for your physical or mental labor

• Wage

• Salary

• Commission

• Bonus

Borrowing money and promising to pay it back later with interest added. Can be a loan or credit cards

• Loan

• Credit

• Mortgage

• Debit

Allowing others to use your money in return for giving you interest

• Saving

• Lending

• Investing

• Donating

Giving money in order to receive a good or a service

• Spending

• Saving

• Investing

• Borrowing