Financial Literacy Terms

expenses that may change from week to week or from month to month

property which is pledged as collateral for a loan - it can be taken by the lender if the borrower fails to pay it back

the debts and other financial obligations of a person or company; the opposite of assets

someone you owe money to

the amount you’ve borrowed

An agreement by a lender to extend credit up to a certain limit whenever the borrower needs to use it.

the cost of borrowing money, expressed as a percentage, usually over a period of 1 year

money you take out of an account

the profit you make on an investment

the person who owes money to someone

how much your pay cheque is after taxes and any other deductions have been taken off

an evaluation of the likelihood of a borrower to pay back a loan.

money you put into an account

the ease with which a financial asset can be turned into cash

the repayment time period of a loan or debt

the price associated with using someone else's money

the extension of credit by a bank which allows withdrawals to exceed deposits

interest earned on previously accumulated interest as well as the principal

the number of months for the current period of the loan

things you own, even if you still owe money against them

a plan to manage income, spending and saving

borrowing to buy something with the promise to make payment at a later time

expenses that are the same every month

a general increase in the price of goods and services over time

how much your pay cheque is before taxes are deducted