Glossary Terms:

Money Comes and Goes

Glossary terms from:
http://www.econedlink.org/e483


Allowance

A sum of money paid regularly to a person, often by a parent to a child; sometimes paid in compensation for services rendered.

Balanced Budget

A financial plan in which income is equal to expenses.

Bank

A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.

Budget

A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.

Consequence

A result or effect of an action or decision; may be positive or negative.

Entrepreneur

One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit. Often a risk-taker, inclined to see opportunity when others do not.

Expenses

Payments for goods and services.

Goal

Something a person or organization plans to achieve in the future; an aim or desired result.

Income

Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Principal

An original amount of money invested or lent.

Purchases

In a credit arrangement, the total amount spent during the billing cycle.

Save

To keep money for future use; to divert money from current spending to a savings account or another form of investment.

Saving

Disposable income (income after taxes) minus consumption spending.

Savings

Money set aside for a future use that is held in easily-accessed accounts, such as savings accounts and certificates of deposit (CDs).

Spend

Use money now to buy goods and services.

Spending Diary

A record of spending over a period of time.

Wants

Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.

Work

Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.