1. Budget
A plan for how you earn and spend money.
It helps you track your income and expenses each month.
2. Income
Money you receive from your job, business, pension, rent, or any other source.
3. Expenses
Money you spend — for food, rent, transportation, bills, loans, etc.
4. Interest Rate
The percentage charged or earned on borrowed or saved money.
On a loan — you pay interest to the bank.
On a deposit — the bank pays interest to you.
5. Deposit
Money you put into a bank to keep safe and earn interest.
6. Loan / Credit
Money you borrow from a bank or person, which you must pay back later with interest.
7. Collateral
Something valuable (like a car or house) you offer as a guarantee when taking a loan.
If you don’t repay the loan, the bank can take the collateral.
8. Financial Literacy
The ability to understand and manage money — saving, budgeting, investing, borrowing wisely.
9. Inflation
When prices increase over time and money loses value.
What costs $100 today may cost $120 next year.
10. Assets and Liabilities
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Assets – things that bring you money (e.g., rental property, investments)
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Liabilities – things that cost you money (e.g., loans, debts)
📌 Summary
Knowing these 10 basic terms helps you:
✅ make smarter money decisions
✅ avoid debt traps
✅ plan for the future
✅ become financially independent