Money Dictionary

Every money word in the textbook, explained in plain language for grades 7–12. Search by word or by meaning, or filter by category. Each word is color-coded by where it is used.

Search the dictionary

113 of 113 words

business · business: An organization that makes or sells goods or services to earn money.
revenue · business: The total money a business brings in from sales, before any costs are paid.
expense · business: Money a business spends to run, such as rent, supplies, or wages.
profit · business: What is left when expenses are subtracted from revenue.
gross profit · business: Revenue minus the direct cost of the items sold, before other expenses.
net profit · business: The final profit after every cost is paid — sometimes called the bottom line.
profit margin · business: Profit shown as a percent of revenue; a 10% margin means $10 of profit per $100 of sales.
markup · business: The amount added to a cost to set a selling price; the markup rate uses cost as its base.
markdown · business: A reduction from the regular selling price, often to clear out inventory.
cost · business: The amount paid to make or buy an item before it is sold.
selling price · business: The price a customer pays for an item or service.
wholesale · business: The price or market for buying goods in bulk, usually from a supplier.
retail · business: The price or market for selling goods to the public, usually in small amounts.
invoice · business: A document listing goods or services sold and the amount owed.
vendor · business: A company or person that supplies goods or services to a business.
inventory · business: The stock of goods a business holds ready to sell.
overhead · business: Ongoing business costs such as rent, utilities, and insurance that do not change with each sale.
fixed cost · business: A cost that stays the same no matter how many items are sold, like rent.
variable cost · business: A cost that rises or falls with the number of items made or sold.
break-even point · business: The sales level where revenue exactly equals total cost, so there is no profit and no loss.
depreciation · business: The way a costly item, such as a machine, loses value and its cost is spread over its useful life.
asset · business: Something valuable that a person or business owns, like cash, equipment, or a building.
liability · business: Money or obligations a person or business owes to others.
equity · business: What is left of an asset after debts are subtracted; in a home, value minus what you still owe.
balance sheet · business: A snapshot listing what a business owns (assets) and owes (liabilities) on one date.
income statement · business: A report showing revenue, expenses, and profit over a period of time.
cash flow · business: The movement of money into and out of a business or account.
budget · business: A plan that shows expected income and how it will be spent.
sales tax · business: A percentage added by the government to the price of many purchases.
discount · business: An amount taken off a regular price.
commission · business: Pay based on a percentage of the sales a worker makes.
payroll · business: The system and records a business uses to pay its workers.
gross pay · business: Total earnings before any deductions are taken out.
net pay · business: Take-home pay after taxes and other deductions.
salary · business: A fixed amount of pay, usually stated per year, that does not depend on hours worked.
overtime · business: Extra pay, often 1.5 times the normal rate, for hours worked beyond a set limit.
deduction · business: Money removed from gross pay for taxes, benefits, or other reasons.
payment terms · business: The rules in an agreement about when a bill must be paid and any discounts for paying early.
purchase order · business: A formal request from a buyer listing items to buy at agreed prices.
insurance premium · business: The amount paid, often monthly, to keep an insurance policy active.
deductible · business: The amount you pay yourself before an insurance policy starts paying.
checking account · banking: A bank account for everyday spending, usually with a debit card and checks.
savings account · banking: A bank account meant to hold money for later, often earning a small amount of interest.
deposit · banking: Money placed into a bank account.
withdrawal · banking: Money taken out of a bank account.
balance · banking: The amount of money in an account at a given moment.
account statement · banking: A bank's record of deposits, withdrawals, fees, and the balance for a period of time.
bank reconciliation · banking: Comparing your own record of an account with the bank's statement and explaining any differences.
outstanding check · banking: A check you wrote that the recipient has not cashed yet.
deposit in transit · banking: Money you have recorded that the bank has not yet processed.
overdraft · banking: Spending more than the balance in an account, which may trigger fees.
debit card · banking: A card that takes money directly from your checking account when you pay.
mobile banking · banking: Using a phone app to check balances, deposit checks, or move money.
pending transaction · banking: A payment the bank has authorized but not yet completed, so it may not appear in the final balance.
FDIC insurance · banking: A government program that protects money in insured bank accounts up to a set limit if the bank fails.
simple interest · banking: Interest calculated only on the original principal, not on interest already earned.
interest rate · banking: The percent used to calculate how much interest is earned or charged.
credit · credit: The ability to buy now and pay later, or money borrowed that must be repaid.
credit card · credit: A card that lets you borrow up to a limit and repay over time, usually with interest.
APR · credit: Annual percentage rate — the yearly cost of borrowing, including interest and some fees, shown as a percent.
minimum payment · credit: The smallest amount due on a credit card bill each month; paying only this keeps you in debt longer.
credit limit · credit: The most you can borrow on a credit card or credit line.
credit score · credit: A number that estimates how reliably someone repays debts.
debt · credit: Money that is owed and must be paid back.
installment plan · credit: Paying for something in a set number of equal payments over time.
late fee · credit: An extra charge when a payment arrives after its due date.
grace period · credit: A short time after the due date before a fee or interest charge applies.
statement balance · credit: The amount owed on a credit account as of the statement date.
balance transfer · credit: Moving debt from one card to another, sometimes to get a lower interest rate.
default · credit: Failing to repay a loan as agreed, which can harm credit and lead to collection.
cosigner · credit: A person who agrees to repay a loan if the borrower cannot.
loan · financing: Money borrowed that must be repaid, usually with interest.
principal · financing: The original amount of money borrowed or invested, before interest.
interest · financing: The cost of borrowing money, or the earnings on money saved or invested.
loan term · financing: How long a loan lasts before it must be fully repaid.
total repayment cost · financing: The full amount paid over a loan's life — principal plus all interest and fees.
finance charge · financing: The total dollar cost of borrowing — all interest and fees added together, on top of the amount financed.
monthly payment · financing: The amount paid each month toward a loan or installment plan.
down payment · financing: Money paid upfront when financing a purchase, which reduces the amount borrowed.
amortization · financing: Spreading a loan into scheduled payments so that early payments are mostly interest and later payments are mostly principal.
mortgage · financing: A long-term loan used to buy a home, with the property as security.
collateral · financing: Property a borrower promises to a lender if the loan is not repaid, such as a car.
refinance · financing: Replacing an existing loan with a new one, often to get a lower rate or payment.
origination fee · financing: A fee a lender charges to set up a loan.
closing costs · financing: Fees paid when a home or property purchase is finalized, such as appraisal and title fees.
escrow · financing: Money held by a third party, such as property tax collected along with a mortgage payment.
promissory note · financing: A written promise to repay a specific amount by a certain date.
maturity date · financing: The date a loan or note must be fully repaid.
bank discount · financing: Interest deducted from a loan in advance, so the borrower receives less than the face amount.
sinking fund · financing: Money set aside regularly so a future obligation can be paid without borrowing.
lease · financing: A contract to use an item for a period of time by making payments, without owning it.
prepayment penalty · financing: A fee charged for paying off a loan early.
investment · investing: Money put into something with the hope it will grow or earn income later.
return · investing: The money or gain an investment produces, often shown as a percent.
ROI · investing: Return on investment — the gain compared to what you put in, as a percent: (gain ÷ cost) × 100.
stock · investing: A share of ownership in a company.
bond · investing: A loan to a government or company that pays interest and repays the face amount at maturity.
mutual fund · investing: A pool of money from many investors used to buy a mix of stocks, bonds, or both.
dividend · investing: A share of a company's profit paid to its stockholders.
compound interest · investing: Interest earned on both the original amount and the interest already earned.
future value · investing: What an amount of money today will be worth at a later date with interest.
present value · investing: What a future amount of money is worth today at a given interest rate.
diversification · investing: Spreading money across different investments to reduce risk.
inflation · investing: A general rise in prices over time, which makes money buy less.
yield · investing: The income an investment pays, shown as a percent of its price.
capital gain · investing: Profit made by selling an investment for more than it cost.
portfolio · investing: The full collection of investments a person or fund owns.
annuity · investing: A series of equal payments made at regular intervals, such as monthly.
risk · investing: The chance that an investment or decision will turn out worse than expected.
speculation · investing: A very risky investment made in hopes of a quick, large gain.
bid-ask spread · investing: The gap between what buyers will pay (bid) and what sellers will accept (ask); a hidden cost on every trade.
limit order · investing: An order to buy or sell only at a price you choose or better; it protects your price but may not fill.
liquidity · investing: How quickly and easily something can be bought or sold for cash without changing its price much.

Vocabulary quiz