ABC's of Finance

Common Finance Terms

Use our ABC’s of Finance glossary from A to Z when defining monetary terms and principles. This free tool is essential to understanding how money works and most importantly, how to make money work for you! Each term is accompanied with an extended definition and a brief outline of its applications.

What Is Interest?

INTEREST - Financ a sum paid or charged for the use of money or for borrowing money. such a sum expressed as a percentage of money borrowed to be paid over a given period, usually one year Definition provided by Dictionary.com

What Is An Emergency Fund?

EMERGENCY FUND - An emergency fund is a stash of money set aside to cover the financial surprises life throws your way

What Is A Deductible?

DEDUCTIBLE - capable of being deducted. allowable as a tax deduction:Charitable contributions are deductible expenses. noun the amount for which the insured is liable on each loss, injury, etc., before an insurance company will make payment Definition provided by Dictionary.com

What Is A Recession?

RECESSION - a period of an economic contraction, sometimes limited in scope or duration Definition provided Dictionary.com

What Is A Credit Card?

CREDIT CARD - a card issued by banks, businesses, etc, enabling the holder to obtain goods and services on credit Definition provided by Dictionary.com

What Is A Bank?

BANK - an institution for receiving, lending, exchanging, and safeguarding money and, in some cases, issuing notes and transacting other financial business. Definition provided by Dictionary.com

What Is An Account?

ACCOUNT - an amount of money deposited with a bank, as in a checking or savings fund. Definition provided by Dictionary.com