Financial Literacy Awareness 101: Vocabulary for Junior Achievers

It’s never too early to think about your financial future, so we’ve created a Financial Vocabulary List to help steer the course for your children, grandchildren, nieces and nephews. You can make flash cards, create a spelling test, or just sit together and talk about what it means to save and spend money.

Balance:  The amount remaining in one account after all deposits and withdrawals are considered.

Budget:  A daily, weekly, monthly or yearly plan with spending and savings goals and amounts listed.

Credit Union: A nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.

Expense:  The cost required for something/the money spent on something.

Income:  Money earned or received.

Gross income:  The amount of money earned prior to deductions and taxes.

Net income:  The amount of money paid to you after deductions and taxes.

Taxes:  Contributions to local, state, and federal governments, contributed through income, business profits, or through the sale of goods, services, and transactions.

Income Tax:  Money paid to local, state, and federal governments based on an individual’s income (as required by law).

Payroll Taxes:  Money that a company withholds from employees for the federal governments (as required by law).

Property Tax:  Money collected on the value of property for the local government (as required by law).

Sales Tax:  Money collected by a store or retailer in addition to goods or services purchased for the local government (as required by law).

Transaction:  Specific time or moment when money exchanges hands.