Transcript for:
Essential Finance Vocabulary Terms

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Vocabulary Word Definition Income the money you earn over a certain time, like from a job or allowance Annual Fees money you pay once a year to a bank or company for using their services, like a credit card Savings Account a bank account where you keep your money safe, and the bank even pays you a little extra money (interest) for keeping it there Expense money you spend on things you need or want, like groceries or movie tickets Principal the original amount of money you borrowed or saved, not including any extra interest Exchange Rates This tells you how much one country's money is worth compared to another country's money, like how many Canadian dollars you get for one US dollar Chequing Account a bank account where you can keep your money and take it out whenever you need it, often by using a debit card or writing a cheque Tax money that people and businesses pay to the government, and the government uses that money to pay for things like schools, roads, and healthcare Budget a plan that helps you decide how much money you have and how you're going to spend it Debit Card a card that lets you pay for things directly from the money in your bank account Mortgage a big loan you get from a bank to buy a house, and you promise to pay it back over many years, otherwise the bank can take the house. Credit Card a card that lets you borrow money from a bank to buy things now, but you have to pay it back later, usually with extra money called interest if you don't pay it all back quickly Deposit when you put money into your bank account, or a payment you make upfront to show you're serious about buying something Interest Rate the extra percentage of money you have to pay back when you borrow money, or the extra percentage the bank pays you for saving your money with them Emergency Fund money you save up specifically for unexpected problems Withdrawal when you take money out of your bank account Debt money that you owe to someone else Currency the type of money a country uses, like Canadian dollars (CAD) Financial Advisor a person who helps people make smart choices about their money Societal Factors ways that other people and groups (like your family, friends, or culture) can influence your decisions about money Personal Factors things about you (like your experiences, what you know, and your personality) that affect how you handle money Savings the money you've put aside, usually in a bank, instead of spending it Investment when you use your money to buy something (like stocks or property) hoping it will grow and be worth more in the future Cost of Borrowing the total amount of money you have to pay back when you borrow money, which includes the original amount you borrowed plus all the extra interest $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $