Financial Literacy Glossary
All the key words from our curriculum, explained in plain language. Terms are listed alphabetically. The Introduced column shows where each word first appears.
| Term | Definition | Introduced |
|---|---|---|
| Balance | The amount of money currently recorded in an account or ledger. A balance goes up when money is added and down when money is taken out. | Week 12 |
| Bank | A place or company that stores, tracks, and moves money. Some people use banks, some use credit unions, and some use other tools. | Week 12 |
| Barter | Trading one thing directly for another without using money. | Week 2 |
| Budget | A plan for how you will use your money over a period of time. A budget helps you make sure you have enough for what matters most. | Week 10 |
| Buffer | Extra money set aside to absorb surprise costs — like a financial cushion that keeps your budget from breaking when something unexpected happens. | Week 11 |
| Buying power | See Purchasing power. | Week 14 |
| Consumer | A person who buys or uses goods and services. | Week 8 |
| Credit card | A card that lets you buy things now and pay for them later. You usually owe interest if you do not pay the full amount on time. | Week 6 |
| Credit union | A financial institution that stores, tracks, and moves money, much like a bank. | Week 12 |
| Currency | The type of money used in a country or community — like dollars, euros, or pesos. | Week 3 |
| Debit card | A card that takes money directly out of an account linked to the card when you use it. | Week 6 |
| Deposit | Putting money into an account. | Week 12 |
| Digital payment | Paying for something using a phone, computer, or card instead of cash. | Week 7 |
| Emergency fund | Money you set aside for unexpected expenses — things you did not plan for but need to handle right away. | Week 11 |
| Entrepreneur | A person who starts a project or business to solve a problem or create something valuable. | Week 15 |
| Expense | Money you spend. Expenses can be needs (things you must have) or wants (things you would like to have). | Week 5 |
| Fixed expense | A cost that stays about the same every month, like rent or a phone bill. Fixed expenses are hard to change quickly. | Week 4 |
| Flexible expense | A cost that can go up or down depending on your choices, like food, entertainment, or clothing. Flexible expenses are easier to adjust. | Week 4 |
| Friction | Anything that slows you down before you spend money. Friction gives you time to think about whether a purchase is a good idea. | Week 8 |
| Goods | Physical things you can buy, like food, toys, or books. | Week 2 |
| Income | Money that comes in — from work, gifts, project sales, allowances, or other sources. | Week 5 |
| Inflation | When prices go up over time, so the same amount of money buys less than it used to. | Week 14 |
| Interest (borrowing) | Extra money you owe when you borrow. It is the cost of using someone else's money. | Week 13 |
| Interest (saving) | Extra money a bank or credit union may pay you for keeping money there. It is a reward for saving. | Week 13 |
| Ledger | A written record of money going in and out of an account. Banks use ledgers to track every deposit and withdrawal. | Week 12 |
| Mobile payment | Paying using a phone app, like tapping your phone at a store. | Week 7 |
| Needs | Things you must have to be safe, healthy, and able to live — like food, shelter, and clothing. | Week 4 |
| Opportunity cost | The value of the next-best option you give up when you make a choice. If you spend $10 on a book, the opportunity cost is the best other thing you could have done with that $10. | Week 9 |
| Pitch | A short, clear explanation of your project or idea designed to get other people interested. | Week 18 |
| Price | The amount of money you need to pay to buy something. | Week 3 |
| Profit | The money left over after you subtract your costs from your revenue. Profit = Revenue − Costs. | Week 17 |
| Prototype | An early version of a product or idea that you build to test whether it works. | Week 16 |
| Purchasing power | How much you can actually buy with your money. When prices go up (inflation), your purchasing power goes down even if you have the same amount of money. Also called buying power. | Week 14 |
| Revenue | The total money that comes in from selling a product or service, before subtracting costs. | Week 17 |
| Risk | The chance that something unexpected or bad could happen, especially something that costs money. | Week 11 |
| Savings | Money you keep and do not spend right away. Saving helps you afford bigger things later and prepares you for emergencies. | Week 10 |
| Subscription | A plan that charges again and again, such as every month, until it is canceled. | Week 8 |
| Services | Work that people do for others, like tutoring, haircuts, or fixing a bike. | Week 2 |
| Trade | Exchanging something you have for something someone else has. | Week 2 |
| Transaction | Any exchange of money for goods or services — buying, selling, depositing, or withdrawing. | Week 6 |
| Tradeoff | Giving up one thing in order to get another. Every choice involves a tradeoff. | Week 9 |
| Value | How much something is worth to a person. Value can be different for different people and can change over time. | Week 1 |
| Wants | Things you would like to have but do not need to survive — like toys, games, or treats. | Week 4 |
| Withdrawal | Taking money out of an account. | Week 12 |