Key Vocabulary Terms in Finance

Income

• Definition: Money earned over a certain period, such as from a job or allowance.

Annual Fees

• Definition: Yearly payments to a bank or company for using their services, like a credit card.

Savings Account

• Definition: A bank account for keeping money safe, with interest paid by the bank.

Expense

• Definition: Money spent on necessities or wants, such as groceries or entertainment.

Principal

• Definition: The original amount of money borrowed or saved, excluding interest.

Exchange Rates

• Definition: The value of one currency in comparison to another, such as CAD to USD.

Chequing Account

• Definition: A bank account for daily use, accessed via debit card or cheque.

Tax

• Definition: Money paid to the government for public services like education and infrastructure.

Budget

• Definition: A financial plan to manage and allocate money effectively.

Debit Card

• Definition: A card for spending money directly from a bank account.

Mortgage

• Definition: A substantial loan from a bank to buy property, paid over many years.

Credit Card

• Definition: A card that allows borrowing money to make purchases, requiring repayment with possible interest.

Deposit

• Definition: Putting money into a bank account or an upfront payment to secure a purchase.

Interest Rate

• Definition: The percentage of extra money owed on a loan or earned on savings.

Emergency Fund

• Definition: Savings reserved for unexpected financial challenges.

Withdrawal

• Definition: Removing money from a bank account.

Debt

• Definition: Money owed to another party.

Currency

• Definition: The official money used in a country, such as Canadian dollars (CAD).

Financial Advisor

• Definition: A professional who guides individuals in making informed financial decisions.

Societal Factors

• Definition: Influences from family, friends, or cultural norms on financial decisions.

Personal Factors

• Definition: Individual traits and experiences affecting money management.

Savings

• Definition: Money set aside, typically in a bank, for future use.

Investment

• Definition: Using money to purchase assets like stocks or property for future growth.

Cost of Borrowing

• Definition: The total repayment amount on a loan, including principal and interest.