Income: Money you earn or receive
Expense: Money you spend
Budget: A plan for how to spend and save money
Needs: Things you must have, like food, shelter and clothing
Wants: Things you would like but can live without
Saving: Setting money aside for later
Spending: Using money to buy things
Earning: Getting money for work
Allowance: Money children receive regularly from a family
Wage: Money paid for work, often by the hour
Salary: A fixed yearly payment for a job
Tip: Extra money given to thank someone for service
Gross pay: Pay before taxes are taken out
Net pay (take-home pay): Pay after taxes and deductions
Tax: Money people pay to the government for public services
Income tax: Tax on money you earn
Sales tax: Tax added to things you buy
Deduction: An amount subtracted from pay
Bank: A business that holds and lends money
Credit union: A not-for-profit financial cooperative owned by members
Savings account: An account that holds money and pays interest
Checking account: An account for everyday spending with checks or a debit card
Deposit: Money put into an account
Withdrawal: Money taken out of an account
Balance: The amount of money in an account
Debit card: A card that takes money directly from your bank account
ATM: Machine to withdraw cash or make deposits
PIN: Personal identification number, a secret code for a card
Cash: Coins and paper money
Check: A written order for the bank to pay money
Interest: Money paid for using money, earned on savings or paid on loans
Compound interest: Interest earned on both the money and past interest
Simple interest: Interest calculated only on the original amount
Principal: The original amount of money borrowed or invested
Goal setting: Deciding what you want to save for
Short-term goal: A goal you can reach soon
Long-term goal: A goal that takes many years
Emergency fund: Money saved for unexpected costs
Pay yourself first: Saving some money before spending the rest
Save, spend, share: Three jobs for money: keep some, use some, give some
Donation: Money or goods given to help others
Charity: An organization that helps people in need
Opportunity cost: What you give up when you choose one thing over another
Trade-off: Giving up one thing to get another
Price: The amount of money a good or service costs
Value: What something is worth to you
Unit price: The price per single unit, like per ounce
Comparison shopping: Checking prices at several places before buying
Coupon: A voucher for a discount
Sale: A time when items are priced lower
Impulse buying: Buying without planning
Advertising: Messages that try to persuade you to buy
Profit: Money left after costs are subtracted from earnings
Entrepreneur: A person who starts a business
Supply: How much of something is available
Demand: How much people want something
Inflation: A general rise in prices over time
Investing: Putting money into something hoping it grows
Stock: A small share of ownership in a company
Bond: A loan to a company or government that pays interest
Mutual fund: A mix of many investments pooled together
Diversification: Spreading money across different investments to lower risk
Retirement: The time of life after stopping regular work
Net worth: What you own minus what you owe
Asset: Something valuable that you own
Liability: Something you owe
50/30/20 rule: About 50% needs, 30% wants, 20% savings

Free flashcards from Peabody at peabody.kids/flashcards/finance-money-basics