My Financial Life

Our financial lives can be somewhat difficult to manage especially if we don't know the language. Let's learn some Finance vocabulary to better balance the books on our English financial future.


Finance vocabulary

Nouns

Bank
A financial institution that holds and gives money.

Save
To keep money.

Income
The amount of money you make from working or investments.

Expenses
The amount of money you spend on food, rent or mortgage, clothes, utilities, etc.

Budget
Based on income and expenses a planned amount of money set aside for food, clothes, utilities, entertainment, savings, etc.

Debt
Amount of money you owe to others from credit or a loan.

Check
A special piece of paper paid to a business or individual for goods and services for an amount of money taken out of a checking account. Typically not used very often anymore.

Debit
An amount of money taken out of an account usually a checking account with a debit card.

Credit
An amount of money your allowed to borrow but have to pay back commonly used through a credit card.

Loan
An amount of money borrowed from a bank or individual for buying a house, opening a small business or to go to school that is paid back.

Interest
To earn money on top of money based on a percentage of the total value usually in a savings account; or in credit or a loan the amount of money owed based on a percentage of the total value added to the balance.

Rent
Amount of money paid every month for an office, house, or apartment. Sometimes you can rent furniture or a car and might be referred to as a 'rental'.

Mortgage
A special loan given to buy non movable property such as a house or land.

Profit
Total income after expenses for a goods and services business.


Verbs

Banking
A verb used when we're doing money activities.

Savings
An account for money that is saved.

Checking
An account for money that is often spent using a check or debit card.

Spend
To pay, buy or give money for goods and services.

Invest
To spend money into land (real estate), stocks, bonds or other goods that may gain value over time such as art, antiques or other valuable collectables in the hopes of making a profit.


Idioms

Balance the Books
To add up all your income and expenses and to make sure all is accounted for.

In the red
To be in debt or to not make a profit.

In the black
To make a profit.

Bounce a check
To write a check in which you don't have the amount in the checking account.

Spend some time studying these words to understand the world of finance better. Who knows maybe there will be a quiz later!!

Happy learning!