Personal Finance Glossary

Credit Card

• a small plastic card issued by a bank, allowing a person to purchase goods or services on credit

• a type of loan that must be repaid in full each month

• a card that allows users to withdraw cash from ATMs only

• a card used exclusively for online shopping

Commission

• money earned as a percentage of a sale or service

• a fixed fee paid for a service

• a bonus given for exceptional performance

• a tax on sales transactions

Interest

• a fee paid for the use of borrowed money

• a percentage of a borrowed sum of money which must be paid in addition to the repayment of the loan itself

• a type of investment that guarantees returns

• a tax imposed on financial transactions

Expenses

• financial obligations, such as bills

• unexpected income

• savings for future investments

• non-essential purchases

Wants

• things we need for survival, such as food and water

• things we desire but can live without, such as toys, video games, or fancy treats

• things that are essential for our daily activities, like clothing and shelter

• things we aspire to achieve, like goals and dreams

Debt

• money owed

• a type of investment

• a financial asset

• a government grant

Short term investments

• Saving your money in a place where you can easily get it back quickly, usually within a year or a few years.

• Investing in stocks for long-term growth.

• Buying real estate to rent out for passive income.

• Putting money into a retirement account.

Mortgage

• house payment

• car loan

• credit card debt

• student loan

Wage or Salary

• terms for work-related financial earnings

• a type of investment

• a form of taxation

• a government subsidy

Credit

• a loan of money

• a type of bank account

• a form of investment

• a method of saving money