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After-tax is the total amount after all applicable taxes have been paid


Every year

Annual percentage rate

APR is a single number that represents the percentage you must pay each year to take out a loan.


Assets are things you own plus anything that is owed to you.

Asset management

Asset management is managing your investments such as stocks, bonds, and cash.


ATMs are machines that allow bank customers to withdraw cash from their bank account.


An audit is an independent check of your account to make sure it is accurate, fair, and legal.

Available credit

Available credit is the amount of money you can still borrow from your credit card. For example, if your credit limit is $3000 and you have already spent $500, your available credit is $2500.


Balance can usually mean two things. Sometimes it refers to how much money you have in your account. Other times, especially on your bill, it refers to how much money you owe.

Balance brought forward

Balance brought forward is when the amount you owed from your last account statement is 'brought forward' to the current statement.

Balance transfer

A balance transfer is switching the amount you owe on one credit card to another credit card.


Bankruptcy means you are unable to pay your debts. Usually in this case, you seek a legal resolution to settle your debts and can result in the sale of your property to pay your debts.


A bond is a loan, usually to the government, that pays you back with interest on a certain date in the future.

Book value

The book value is the price of a fixed asset (for example, a tractor), after depreciation.

Bounced check

A bounced check is when a bank refuses to pay the value of a check because there is not enough money in the account to pay it.


Budget is a record of how much you earn and how much you spend. It can help you make smarter financial decisions.

Calendar month

A calendar month means starting at the first day of the month and ending on the last day. This is opposed to referring to the last 30 days.


Capital is money that you can spend to make more money through an investment. For example, you could invest capital, or money, in a food truck to start a business.

Cash advance

A cash advance is taking out cash from your credit card, usually from an ATM. This usually results in very high interest rates but allows you to get cash very quickly.

Cash flow

Cash flow is the money coming in and going out of a business.

Cash value

Cash value is how much an account is worth at a given time.


Cashback is the ability to receive cash by paying the appropriate amount extra on top of your bill at a store. For example, if you need $20 cash, when you are checking out at a grocery store you can charge your debit card $20 extra and the cashier will give you that amount in cash.


A charge is the price asked for goods or services.


A check is a written order that instructs your bank to pay a specified amount of money to the person or company named on the check.

Checking account

A checking account is a basic bank account that allows you to easily access your money. You can use it to hold money, accept paychecks, pay bills, and take care of most other banking transactions.


A claim is an order to get money based on an insurance policy. For example, if you are in a car accident, you file a claim to your car insurance company to pay for the damage.


The time it takes for your bank to transfer money from one account to another.

Closing costs

This is what you must pay to finalize a transaction, usually in the case of a home.


These are assets which can be used to guarantee a loan. For example, if your friend loaned you money, you could say that if you are not able to pay him back, he can use your bike. Your bike would be collateral.

Collection Agency

A collection agency is an organization that attempts to collect money from debtors who have not repaid their loan.


A commission is a small fee that is charged as a percentage on the value of goods or services. For example, when a car salesman sells you a car, he usually earns a commission (i.e. money) based on the total value of the sale.


Compensation is how much you money you make.

Compound annual return

This is the annual rate that is equivalent to the compound interest rate.

Compound interest

Compound interest is when is when the money that you earn on interest starts to generate interest on itself. For example: if you invest $1000 at 10% interest for 10 years, you would end up with about $2590 (rather than $2000) because of compound interest.


This is money that a bank or credit card provider has lent to a person.

Credit agreement

A credit agreement is a formal document that lists the conditions on which a person receives credit.

Credit history

A person's credit history shows how well that person has been able to repay debt in the past. A poor credit history makes it harder for a person to get new loans in the future.

Credit limit

Credit limit is the most that you can charge on your credit card or bank account.

Credit outstanding

Credit outstanding is the amount of money that a person still needs to pay back.

Credit rating

Credit rating is an evaluation of credit risk, or the likelihood that the debtor will not be able to pay back the debt.

Credit risk

Credit risk is the risk that a person may not repay a loan or credit.

Credit score

Credit score is a rating or score that you receive based on your ability to pay back a loan. A higher score indicates that you have a higher likelihood of paying back the loan.


A creditor is a person who is owed money


A debit is a payment from an account.

Debit card

A debit card is a card that can be used instead of cash to pay for things and also allows you to withdraw money from an ATM. This is usually given to you when you open a checking account.


Debt is an obligation to pay back the amount you owe.

Debt consolidation

Debt consolidation is taking out a single loan in order to pay off smaller, individual loans.


Default means not repaying your loan or interest on time.


A dependent is someone who depends on another person for financial support, such as a child.


A deposit is the initial amount you pay to get something.


Depreciation is the drop in value of something due to age or its use. For example, a used car is worth less than a new car because of depreciation.

Direct debit

Direct debit means giving permission to a company to automatically take money directly out of your bank account. For example, you can pay your cable bill automatically by setting up direct debit with your cable company.


A disclosure is a document that explains how a financial product works.


Divest means selling off. For example, a company may divest one part of its operations if it is not performing well.

Down payment

A down payment is the portion of an item, usually a house, that you must pay in cash.

Emergency fund

An emergency fund is money that you save to provide a financial back-up in the case that something unexpected happens.


An endorsement is a signature on a document, and usually refers to signing a check.


Equity is the value of shares issued by a company.


Money that a person spends

Face value

Face value can mean a few things but usually it refers to the price that you pay for the bond when it was issued.

Fair market value

This is the price you will pay for something on the open market.

Finance charge

Finance charge refers to the total amount you must pay to borrow money. It includes the interest and any other fees that go along with setting up the loan.

Financial adviser

Someone who provides advice on how to manage or invest a person’s money by evaluating his/her earnings, savings, and spending.

Financial plan

Financial plan is a document that describes your current financial status, your financial goals, and your plan for reaching those goals.


Fiscal refers to finances controlled by the government.

Fixed interest rate

Fixed interest rate means that the interest rate stays constant over time.


Foreclosure is when a lender repossesses your home because you are not able to make your mortgage payments on time.


A fund is money set aside for some purpose.

Grace period

Grace period is the amount of time between when you receive a credit card bill and when you must make your payment.


Gross refers to the total amount before fees or taxes are applied.

Gross domestic product

Gross Domestic Product, or GDP, is the total value of all goods and services produced in a country. For reference, the GDP of the U.S. is about $17 trillion.

Gross interest

Gross interest is the total interest on savings before tax is taken off.

Gross pay

Gross pay is the total pay before income tax and contributions to other programs such as a 401k.

Gross profit

Gross profit is the total profit of a business before taxes.


A guarantee is the contract to pay someone's debt if they are not able to pay it.

Guaranteed interest rate

Guaranteed interest rate is an interest rate that a person can be sure they will receive on an account.


Guarantor is a person who agrees to pay a loan if the person who received the loan is unable to pay it.

Income tax

Income tax is a tax on personal or business income.


Inflation is an increase in prices over time.


Being insolvent means not being able to pay debts when they are due.


An installment is a regular payment to pay back a loan.

Insufficient funds

Insufficient funds means you do not have enough money in your checking account to make a specified payment.

Insurance broker

An insurance broker is someone who can offer a person insurance from multiple insurance companies.

Insurance policy

An insurance policy is a document that outlines the contract made between the insurance company and the person who is receiving the insurance.

Insurance premium

Insurance premium refers to the amount a person regularly pays to the insurance company to make sure they are covered.


Interest is what you must pay to borrow money using a loan or credit card. For example, if a bank lends you $100 but requires you to pay back $110, the $10 is interest.

Interest rate

The interest rate is the extra amount that someone receives if they give out a loan or has to pay if they take a loan.

Interest-free credit

Interest-free credit is a loan that does not require the borrower to pay interest (usually for a specific period).

Investment portfolio

An investment portfolio is the collection of things that someone has invested in. It is usually comprised of stocks, bonds, cash, and property.

Joint account

A joint account is a bank account that is held by more than one person, such as a husband and wife who live at the same address.


A lease is a legal agreement for you to use something in exchange for payment (usually for apartments, cars, machinery, etc).


Levy means to obtain money through a legal process.


Liabilities are debts that you owe.


Lien is the right to keep something owned by someone who owes a debt until the person has repaid it.

Life insurance

Life insurance is a type of insurance that pays out a certain value to beneficiaries upon death.

Line of credit

Line of credit refers to an arrangement with a lender where the most a person can borrow is the credit limit.


Liquidity is how easy and quick it is to convert an asset to cash. For example, stocks are very liquid because they can easily be sold in the market for cash. Property, such as a home, is not liquid because it is much more difficult to turn it into cash.


A loan is borrowing money with the need for repayment.

Loan agreement

A loan agreement simply outlines the details of a loan.

Lump sum

A lump sum is a one-time payment from an investment or an insurance policy.


Maturity is when an investment, policy, or other contract reaches its end.

Minimum payment

Minimum payment is the lowest amount you can pay towards your credit card bill every month.

Monthly installment

A monthly installment is a payment each month.


A mortgage is a loan that gives you a temporary right to a real estate property (like a home), while you pay off the loan and interest.

Mutual fund

A mutual fund is an investment fund that allows you to buy a basket of different stocks and bonds by buying the mutual fund itself. Think of it like a cable tv bundle: you get access to many different channels by buying a package rather than buying each channel individually.


Net refers to the amount that is left after taxes and other fees have been paid.

Net income

Net income is the amount of money an individual or corporation earns after subtracting costs, taxes, and any other expenses.

Net of taxes

Net of taxes means after taxes have been deducted.

Net worth

Net worth is the total value of everything you own (cash, savings, property, home, etc.) after subtracting everything you owe.


Notice usually refers to the amount of time you must give a bank after telling them you would like to take out money.


Overdraft is when you try to take out more money than you have in your account, usually resulting in a fee.


This is when you are not able to pay for something when it is due, usually resulting in a fee.


A pension is money you receive from the government or a private company after you retire.

Pension fund

A pension fund is a fund that pays for employee pensions.

Personal loan

This is a type of loan that a person can use to pay for anything they want.


A PIN (or Personal Identification Number) is a four-digit number that you use as a password to get money from an ATM.


A policy is just a plan or agreement for savings or insurance.


A portfolio is a collection of stocks, bonds, mutual funds, and any other investments.

Pretax income

Pretax income is your income before taxes are applied.


Principal is the amount of money you lend or invest.


Profit (sometimes called net income or earnings) is the amount of money a business has left after it pays its operating costs, taxes, and other bills.


A quotation is just an estimation of what a product or service will cost. For example, you can ask for a quotation for fixing your car and the mechanic will estimate how much it costs.

Rate of return

Rate of return is how much you earn on an investment as a percentage of the purchase price. For example, if you have a 12% annual rate of return on a $100 investment, you will earn $12 in one year.


A rebate is when you are returned some part of what you have paid. A tax rebate is when the government returns money that you have paid for taxes.


A recession is a major decrease in economic activity over an extended period of time.


A remittance is a payment.

Repayment Schedule

Repayment schedule refers to a list of monthly loan payments toward paying off the total loan amount.


Return refers to the gain or loss on your investment. For example, if you invest $100 and your investment is worth $110, your return is 10%.

Revolving credit

Revolving credit is when your credit (or what you owe) is carried over from one period to the next because you did not make the full payment.


Risk is the possibility that you will lose money. All investments carry some amount of risk.

Savings account

A savings account is a basic bank account that allows you to build up savings and earn interest.

Secured loan

A secured loan is a special type of loan that is borrowed against a particular asset. If the person is not able to make the repayments, the lender can seize the asset.


A security is a proof of ownership or debt that has been assigned a value and may be sold. Securities are usually stocks, bonds, and options.


A share is an investment that gives the owner partial ownership of a company. For example, if I have a share of Apple, I am a (very small) owner of Apple.

Spending plan

A spending plan (or budget) is a plan that helps you save money, rely less on credit, and live within your means.


A statement is a document from the bank that shows your spending activity.

Stock market

The stock market is a place where you can buy and sell stocks.


A surcharge is a fee that a bank charges if a customer violates the agreement.

Tax credit

A tax credit is income on which a person does not have to pay tax.

Tax return

A tax return is a form that each person fills out to record their income and give other information about their financial situation and sends to the IRS.


Tender is an offer by a company or person to do specific work for a set price.

Term deposit

A term deposit is a deposit held at a financial institution for a fixed period of time.

Term insurance

Term insurance is an insurance policy that provides a guaranteed death benefit for a specific period of time.

Term loan

A term loan is a loan that you must repay within a certain time period.


An underwriter is usually an insurance company that agrees to pay out to an insurance policy.


Underwriting is when an investment firm takes a company public by buying unsold shares. It can also be the process of determining whether a person can afford a loan.

Unsecured loan

An unsecured loan is a loan that is not 'secured' by a particular asset. That means the lender cannot take an asset in the case that you are not able to pay back the loan.

Variable interest rate

An interest rate that may go up or down over time.


Withdraw means taking money out of your account.


Zero-rated is a term to describe goods that are not taxed.