Personal

Finance
Vocabulary

budget
a

plan for how much money will be

spent and earned during a certain
period.

i.e.

The school makes a new budget

every year.

benefit
an

object, action, or sum of money that

improves someone's life; aid.

i.e.

The company gives its workers

benefits such as health insurance and
vacation days.

cost
the

amount of money charged or paid

for something.

i.e.

The cost of cereal is higher than it

used to be.

earnings
money
i.e.

received as pay; wages.

His earnings doubled at his new job.

interest
a

rate that is paid for the use of another

person's money.

i.e.

The bank will pay us 7.9 percent

interest on the money we keep there.

interest expense
In

order to borrow money from a bank,

or when using a credit card, you will pay
the amount you borrowed back with
interest.

i.e.

I borrowed $4,000.00 from the bank

and paid back this amount plus 9%
interest.

interest income
When

you put your money in the bank,

the bank will pay you interest on that
money, which is called interest income.

invest
to

put into use for the purpose of

making money.

i.e.

He invested his money in a new

company and hoped to get back twice
as much.

investing
The

act of using money to make

purchases that will make you more
money.

spending
to

pay out.

i.e. I will spend my money on a new

book.

savings
(plural)

money that has been collected

over a period of time.

i.e.

Over the past year I have added fifty

dollars to my savings.