Financial Literacy Terms

Consumer

• A person who buys or receives goods or services for personal needs or use.

• A person who sells products to retailers.

• A person who manufactures goods for sale.

• A person who provides services to consumers.

Cost

• The total price of a product or service.

• The amount of money that is needed to pay for or buy something.

• A measure of the value of an item in terms of money.

• The difference between the selling price and the purchase price.

Needs

• Basic things that someone must have to survive.

• Luxury items that enhance comfort.

• Optional items for leisure activities.

• Things that are nice to have but not essential.

Borrower

• Someone who 'borrows' money for a loan.

• A person who lends money to others.

• A financial institution that provides loans.

• A type of investment strategy.

Buy

• To get something by paying money for it.

• To sell something at a profit.

• To borrow something without paying.

• To exchange goods without money.

ATM

• Automated Teller Machine that lets bank customers perform basic transactions.

• A type of bank account for saving money.

• A machine that dispenses cash only during business hours.

• A device used for online banking transactions.

Interest

• A fee charged by a lender and paid by a borrower.

• A type of investment that guarantees returns.

• A penalty for late payment of a loan.

• A tax imposed on savings accounts.

Bank

• A financial institution that accepts deposits and makes loans.

• A place where people go to eat and socialize.

• A type of investment that guarantees returns.

• A government agency that regulates currency.

Emergency Fund

• A cash reserve that is specifically set aside for unplanned expenses.

• A type of investment account for long-term savings.

• A fund used for purchasing luxury items.

• A savings account with high interest rates.

Savings

• Money that you have put aside in a secure place for a future goal.

• Money that you spend immediately on goods and services.

• Money that is borrowed and must be paid back with interest.

• Money that is invested in stocks and bonds for potential growth.