Account
This is the record of your business with a bank. Most young people have a savings account.
Activity
Anything that happens in your account such as deposits, withdrawals, checks paid and interest payments.
Allowance
This is an amount parents sometimes pay children (usually for chores they do) so that they will learn how to handle money before becoming an adult.
Annual Percentage Rate
(APR) The interest paid on a loan or deposit over one year.
ATM
Automated Teller Machine. This is a computerized machine that lets you withdraw or deposit money without someone else's help, 24 hours a day.
Bank
An organization that provides financial assistance for loans and savings for its customers.
Bankruptcy
This is when someone is so far in debt that they cannot pay the companies or people that they owe money to.
Borrow
To get money from someone to use now, with an agreement to pay it back later.
Bounced Check
This is a check that the bank returns because the person who wrote it did not have enough money in his or her account.
Budget
A plan you create for earning, spending and saving your money over a certain period of time.
Bullion
Gold or silver in the shape of a bar.
Capital
These are the valuable things like cash or equipment that belong to a business.
Check
A piece of paper that transfers money from the check-writer's account to the person being paid, instead of using cash. When you write a check you must have the money in your account that equals the amount you write the check for.
Check Register
This is a small book you keep with your checkbook to record when you write a check or deposit money in that account.
Collateral
Something valuable that you promise to give to someone you borrow money from if you can't repay a loan.
Compound Interest
Interest on an investment, like a savings account, that is calculated not only on the money you originally invested, but also on any interest the investment has already earned.
Contract
A written agreement between two or more people that describes some kind of trade of work or goods for money.
Counterfeiting
Making a fake and illegal copy of something, like money, and then pretending that it is real.
Credit
This is a loan that lets you buy something now and pay for it later.
Credit Card
A plastic card, issued by a bank or credit company that allows people to buy things without cash now and pay for it later.
Currency
The actual (or physical) form of money or cash.
Debit
The amount that is subtracted from an account.
Debt
Money that is owed to a person or business after a loan is made.
Deposit
Money put into a bank account.
Earned Income
Money you are paid in exchange for your work.
Expenses
An outflow of money to another person or group to pay for an item or service.
Federal Reserve System
This is the central banking system of the United States. It has the power to regulate our money supply and credit system.
Fee
The price charged for a service.
Finance Charge
The fees lenders charge for borrowing money, including interest, application fees, and service fees.
Fixed Costs
The price charged for a service.
Income
Money you receive.
Installment Loan
A loan that you repay with several payments, over a period of time. Car loans and mortgages are both types of installment loans.
Insufficient Funds
This means you did not have enough money in your account to cover an expense.
Interest
The fee for using someone’s money. In savings accounts, the bank pays the saver the interest. In loans, the borrower pays the lender.
Interest Rate
The amount paid for using someone’s money. This is usually expressed as the APY- Annual Percentage Yield or APR – Annual Percentage Rate.
Investing
Committing money or capital in order to make a financial gain. You can put your money into savings accounts, stocks, bonds, etc. in hopes that they will become more valuable and earn you money. Investments in a business are called capital investments.
Loan
Money given to someone with the understanding that it will be paid back, usually with interest.
Minimum Payment
The smallest amount you have to pay a lender each month on the debt you owe.
Minting
Making money by stamping metal, to create coins.
Money Market Account
A special savings account a bank offers that usually requires a minimum deposit and a minimum balance to be kept each month.
Mortgage
A loan made by a bank to purchase a home or other property.
NSF
An abbreviation for "Not Sufficient Funds." This means you didn’t have enough money in your account to cover the check you wrote.
Payee
The person or company you write a check to.
Percentage
A fraction of something, always divided by 100. One percent is 1/100th; ten percent is 10/100ths, and so on.
Period
The amount of time used to figure interest and record activity, usually one month.
Personal Identification Number
(PIN) The private number you choose to access your account or ATM.
Principal
The original amount of money owed or invested.
Profit
The money left over after you pay your bills.
Register
The record kept of all transactions.
Repossess
When a lender takes back something, like a car or a house, because the borrower can't repay the debt for it.
Simple Interest
Interest that is paid only on principal and not on the extra interest earned.
Transaction
Any change or activity in your account, such as a deposit or withdrawal.
Transfer
Moving money from one account to another.
Variable Costs
Costs a business must pay that change, depending on how many customers the business has.
Withdrawal
Taking money out of an account.
Yield
The amount of money you earn on an investment, figured as a percentage of the amount you invested.
