budgetA forecast of money in and money out, used as a guide. It covers a set period of time and is also called a spending plan.
consumerThe buyer who ends up using a product. A store that buys goods to sell again is not the consumer of those goods.
creditTrust that lets a person buy now and repay later. Using a credit card and taking out a loan are both ways of using credit.
debitMoney subtracted from what an account holds. A debit card pays for a purchase with money from a checking account.
expenseA cost of living or working, such as rent or food. A fixed expense generally stays the same each month; a variable expense changes from month to month.
financial literacyThe knowledge and skills to handle money well. People use it to make informed decisions about money.
incomeAll the money that comes in, from pay or other sources. Wages, tips and gifts all count as income.
interestThe amount added over time to a sum borrowed or saved. A lender charges it on a loan, and a bank or a credit union may pay it on money deposited.
loanA sum lent on a promise that it will be returned. A loan is generally repaid with interest.
needsWhat a person cannot do without, like food. Clothing, shelter and a reliable way to get to work are needs too.
savingsFunds put away for a future need or purchase. People often keep their savings in a bank account.
wantsExtras that add comfort or fun but can be skipped. A want is wished for; a need is necessary for survival.
Show all 36 terms (24 more)
Planning 12
buying powerHow much a unit of money can buy. It is also called purchasing power, and it falls when prices rise.
comparison shoppingWeighing similar products against each other first. The shopper compares prices, features and risks before paying.
delayed gratificationWaiting for a bigger reward instead of a quick one. Saving for weeks to buy one thing, and passing up small treats on the way, is an example.
donationA gift made to help a charity or people in need. Food, clothes and toys can be donated as well as money.
emergency fundCash kept ready for surprise costs. A car repair or a loss of income is the kind of surprise it covers.
impulse purchaseAn unplanned buy made on the spur of the moment. Buying this way can add up to more than a person can afford.
irregular incomePay whose amount and timing keep changing. It can come from work or from investments.
long-term goalA target that lies more than five years away. Saving for college is an example.
net worthWhat you own minus what you owe. It is negative when a person owes more than he or she owns.
opportunity costWhat you pass up by picking one option over another. It can be measured in time as well as in money.
regular incomePay that arrives in the same amount on a schedule. A weekly or monthly paycheck of a set amount is regular income.
short-term goalA target to hit soon, in five years at most. Saving for a bicycle is an example.
Staying safe 12
borrowerThe one who gets a loan and owes it back. A borrower may be an organization as well as a person.
contractA deal whose promises can be upheld in court. The same word names the document that records the agreement.
debtAn amount still to be repaid. A debt may be owed to a person or to a business.
deposit insuranceProtection for money in a bank that fails. In the United States the FDIC insures deposits to at least $250,000 for each depositor at each insured bank.
feeAn extra charge added for a service. A card replacement fee and an inactivity fee are two examples.
financial institutionA business such as a bank or a credit union. Banks and credit unions are two kinds, and both accept deposits.
fine printDetails and limits printed in very small type. Limits and conditions of an offer are often tucked into it.
identity theftStealing a person's private details to pose as them. A name, a Social Security number or a credit card number can be stolen this way.
lenderA bank or a person who supplies borrowed money. A lender generally expects to be repaid with interest.
phishingSending fake messages to fish for secret information. The message often pretends to come from a business or a government agency.
riskExposure to a possible loss. People buy insurance to be paid back for certain losses.
scamA scheme that fools people into handing over money. A scam may come by phone, text, email, letter or social media, or face to face.
How this list was compiled: Term list chosen for this site on 2026-10-16. Each meaning is written in our own words and was checked that day against the glossary of the youth financial education pages of the Consumer Financial Protection Bureau (https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/glossary/), which defines budget, income, fixed and variable expenses, savings, interest, credit, debit card, loan, needs, wants, consumer, opportunity cost, short-term and long-term goals, regular and irregular income, emergency fund, impulse purchase, comparison shopping, buying power, donate, debt, lender, borrower, the fees named, bank, credit union, identity theft, phishing scam, scam, risk and insurance. Deposit insurance was checked against the page Understanding Deposit Insurance of the Federal Deposit Insurance Corporation (https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance). Each term was also checked against its English Wikipedia article (https://en.wikipedia.org/) or its entry in Wiktionary, the free dictionary (https://en.wiktionary.org/), both under the Creative Commons Attribution-ShareAlike license: the articles Financial literacy, Credit, Want, Delayed gratification, Net worth, Fee, Fine print, Financial institution, Deposit insurance, Donation and Phishing, and the entries debit, expense, net worth, fine print, contract, lender and opportunity cost. The rows financial literacy, delayed gratification, net worth, fine print and contract rest on Wikipedia or Wiktionary alone. The sentence after each meaning is our own. Licence: own work
How it works
This financial literacy vocabulary worksheet opens on the words of everyday money: budget, income, expense, savings, interest, credit, debit and loan, with needs and wants. A key prints as page two.
Read the full guide
Planning
In Set, the second sheet is about deciding: opportunity cost, short-term goal, long-term goal, emergency fund, delayed gratification, impulse purchase, comparison shopping, net worth, regular income, irregular income, buying power and donation.
Staying safe
The third has debt, lender, borrower, fee, fine print, contract, financial institution, deposit insurance, identity theft, phishing, scam and risk. Most meanings follow the youth glossary of the Consumer Financial Protection Bureau, put in other words for the sheet.
These one-line meanings are for vocabulary practice; none is financial advice.
Questions and answers
What is financial literacy?
It is the knowledge, skills and habits that let a person make informed decisions about money.
What is the difference between a need and a want?
A need is something a person must have to live or to work, such as food, clothing, shelter or a way to get to a job. A want is an extra: pleasant to have, but a person can do without it.
What is the difference between credit and debit?
Credit is borrowed money: a credit card purchase is a loan to be repaid, often with interest. A debit takes money straight out of an account, so a debit card spends what is already in a checking account.