Personal Finance Vocabulary

Expenses

• The things you spend money on, like food, clothes or bills.

• A type of income that you receive monthly.

• A financial term for saving money.

• A method of investing in stocks.

Income

• Money you earn or receive, like a job or gift.

• A type of investment that generates returns.

• A tax imposed on earnings and profits.

• A loan taken from a financial institution.

Needs

• Things you must have to live: food, clothes, shelter.

• Things you want to have for comfort: luxury items, entertainment.

• Things that are optional for a good life: hobbies, vacations.

• Things that are harmful to your health: junk food, excessive screen time.

Borrowing

• Using someone else’s money (like a bank) with a promise to pay it back later, often with extra money called interest.

• Taking money from a bank without any obligation to return it.

• Receiving a gift of money from a friend or family member.

• Investing money in a business with the expectation of profit.

Investing

• Using money to try to make more money, like buying stocks or real estate.

• Saving money in a bank account with no interest.

• Spending money on luxury items without any return.

• Donating money to charity without expecting anything in return.

Spending

• Using money to buy things or pay for services.

• Saving money for future use.

• Investing money in stocks or bonds.

• Donating money to charity.

Saving

• Putting money aside for later.

• Spending money immediately.

• Investing in stocks and bonds.

• Borrowing money from a friend.

Debit

• Money taken out of your bank account when you buy something using a debit card.

• A type of credit that allows you to borrow money from the bank.

• A fee charged by the bank for maintaining your account.

• A method of saving money in a bank account.

Wants

• Things you must have to survive.

• Things you would like to have but don't need to survive.

• Basic necessities for living.

• Items that are essential for health.

Debt

• Money that you owe to someone, usually because you borrowed it.

• A type of investment that generates interest.

• A financial term for profit made from sales.

• A legal agreement to purchase property.