budgeting vocab

Question 1

account balance

Answer 1

total amount of money in your account

Question 2

automated teller machine (ATM)

Answer 2

a machine that allows you to perform basic banking functions without the help of a bank teller

Question 3

balance

Answer 3

the money owing on a loan. also the money you have in your account

Question 4

bank

Answer 4

a financial institution that takes cash, lends money and provides other money services

Question 5

bank fees

Answer 5

fees you are charged for using a bank

Question 6

cheque

Answer 6

a written order specifying the amount of money to be paid and the name of the person or company who the money is being paid to

Question 7

chequing account

Answer 7

a personal bank account that lets you write cheques, pay bills, and do other personal money tasks

Question 8

compound interest

Answer 8

interest calculated on both the principal you have on deposit and interest that has accumulated in the past

Question 9

credit

Answer 9

buying now and paying later

Question 10

creditor

Answer 10

the person or business lending you money

Question 11

credit card

Answer 11

a card that lets you buy things now and pay later, usually for a fee

Question 12

deposit/ credit

Answer 12

money you put into your account

Question 13

debit

Answer 13

a withdrawal from your account

Question 14

debit card

Answer 14

a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase

Question 15

debt

Answer 15

money you owe

Question 16

expenses

Answer 16

what you spend your money on

Question 17

identity theft

Answer 17

someone pretending to be someone else, typically in order to access resources or obtain credit and other benefits in that person’s name

Question 18

interest bearing account

Answer 18

an account that earns interest

Question 19

income

Answer 19

the money you make

Question 20

income tax

Answer 20

the money you pay each year to the government

Question 21

interest

Answer 21

the amount of money you earn by leaving deposits in a bank

Question 22

loan

Answer 22

money you have borrowed and agree to pay back for a fee and according to a pay schedule

Question 23

online banking

Answer 23

allows account holders to access their account information, view transaction history and perform banking transactions via the internet

Question 24

personal bank account

Answer 24

a bank account that lets you save money and do everyday financial transactions, such as pay your bills

Question 25

personal identification number (PIN)

Answer 25

a four digit code connected to your debit/ credit card

Question 26

RESP

Answer 26

registered education savings plan– a way to save for a child’s future education

Question 27

RRSP

Answer 27

registered retirement savings plan– a way to save for your retirement

Question 28

transaction

Answer 28

a deposit or withdrawal

Question 29

savings account

Answer 29

a personal bank account that pays you interest on the money you put into it

Question 30

spending plan

Answer 30

a plan for how you will spend your money so that you can best meet your needs. also called a budget

Question 31

withdrawal

Answer 31

money taken out of your account