Financial Literacy Vocab

bank

an institution for receiving, keeping, and lending money

everyday account / current account

bank account for everyday transactions

savings account

a bank account that earns interest

interest

the price paid for the use of borrowed money

interest rate

percentage rate used to calculate interest

compound interest

interest earned on both the principal amount and any interest already earned

principal amount

the amount originally lent

debit card

a card that enables the holder to withdraw money or to have the cost of the purchases charged directly to the holder’s account

credit card

a card used to make purchases now and pay them later

debit card vs. credit card

debit comes right out of the account
credit have to pay back with interest

career

an occupation undertaken for a significant period of a person’s life and with opportunities for progress

job

a regular activity performed in exchange for payment

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

job ad

advertisement for a job

CV

curriculum vitae

curriculum vitae

a document that sets out information about a person, including qualifications, employment history and interests

resume

a brief account of a one’s work experience and qualifications

cover letter/letter of application

a letter that introduces you and allows you to say why would you do a good job for the company

work skills

skills needed to be successful at work, may also refer to specific skills needed for a specific job description

employment sites

a popular way for multiple businesses to post their jobs online to the public (e.g. Seek)

superannuation

regular payment made into a fund by an employee toward a future pension

superannuation guarantee

the minimum amount that your employer must pay into an employee’s superannuation fund; currently 9.5% of gross salary

voluntary contribution

amount given up as part of your before tax salary and have your employer pay this to your super fund

superannuation funds

investment products with different asset allocations as well as different risk and reward strategies

fund provider

company that looks after your superannuation funds and invests the money on your behalf, usually offering you several choices

retirement

the action or fact of leaving one’s job and ceasing to work

landlord

the person who owns the property that you rent

tenant

a person who pays for the right to live in a residence owned by someone else

tenancy agreement

contract between landlord and tenant

bond

money paid by the tenant to guarantee missed rent or damages to the property at the end of lease

share house

arrangement whereby multiple people reside at the same property, and each share the facilities such as dining room and kitchen

mortgage

a loan to purchase a home or other real estate

home deposit

the initial amount of money paid towards the purchase of a property. It’s usually a percentage of the property’s price

budget

a plan for making and spending money

surplus

n. an amount beyond what is required, excess

adj. more than what is needed or expected

deficit

the amount by which something is, especially a sum of money, is too smal

insurance claim

a formal request to an insurance company asking for a payment based on the terms of the insurance policy

insurance excess

part of the damage that the insurant has to pay by himself

income cover

insurance that protects your income in case you are unable to work

insurance

protection against possible financial loss

insurance premiums

money that is paid to an insurer so that an individual will be insured against adverse events

diversification

spreading out investments to reduce risk

dividend

the portion of corporate profits paid out to stockholders

shares

part of a company that people can buy or sell

share price

the cost of a company’s shares

stock exchange

a market for buying and selling stock

IPO

Initial Public Offering

pre-existing condition

a health condition that you already know that you have

Private Medical Cover

insurance that covers medical needs

home and contents insurance

insurance coverage for your home and things that you own from damage and theft