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.
