Personal Financial Literacy Vocabulary

borrower

a person who borrows money

demand

how much a good or service is wanted based on price and availability

availability

how easy or difficult it is to obtain goods or services

budget

an organized plan for spending and saving money

capital

money, property, or other resources owned by a person, family or business

charity

an organization that helps people who are poor, ill or have special needs

checking account

an account that allows a person to deposit or withdraw money and pay for goods or services

cost

the amount paid for goods and services based on their value

credit

loaned money that a lender or business allows a person to use to purchase goods and services. Must be repaid with interest.

credit card

a card issued by a bank, store or other business that is used to borrow money or buy goods and services on credit; must be repaid to the bank, store or business

deposit

money placed into a checking or savings account at a bank

donate

charitable giving that gives money or other resources to help others

expense

money deducted for goods and services

human capital

the education, skills, knowledge, experience and abilities that make a person valuable as an employee

income

the amount of money paid weekly, monthly or yearly in exchange for work

interest

money paid by a borrower in exchange for using a lender’s money for a certain period of time

labor

(verb) to work; (noun) the group of people who work for a company or business

lender

a person or business that loans money

planned spending

expected amounts of money to spend for needs, such as food and housing, as well as money saved for wants, such as vacation trips

scarcity

the situation that exists when the demand for particular goods or services is greater than the supply

unplanned spending

money spent to pay for goods or services that are not part of planned or regular expenses, such as a repair or sudden illness

wage

a regular payment, usually hourly, paid to a worker by an employer

withdrawal

money removed from a savings or checking account