The Spriggy Money Dictionary

Learning about money can be a little bit like learning a new language. We're here to help. This dictionary helps break down complex financial terms into simple, easy-to-understand definitions to help get kids started on their journey to financial literacy.

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1. Bank: A financial institution where some people keep their money. It’s where people can do things like save, deposit, or borrow money. It's kind of a hub for all things money-related.
2. Pocket Money: An allowance given to children by parents or guardians, often on a regular basis, to help teach them how to manage money.
3. Savings: Money that is usually set aside for future use, for example to buy something that’s expensive like a special game or something that might need to be spent on in the future, such as a holiday, university, a car or a house. It’s putting money aside now to spend later.
4. Interest: An amount received for keeping money in an account at a financial institution, where interest is paid on money deposited (for example, a bank may pay interest on amounts held in a bank savings account). Or, interest is money that is paid  by a person to a financial institution when they borrow money from the financial institution. So, it's a bit like earning a bonus for being patient or paying extra for using someone else's money.
5. Budget: A plan for how you'll spend and save your money. A budget helps people manage their money to cover things they need, what they want, and their savings goals.
6. Debt: Money you owe to someone else. If you borrow money to buy something (for example if you pay using a credit card, you’re actually borrowing money), you have to pay it back. It's important to manage debt wisely to avoid financial stress. Often debt also costs the borrower interest, which means they have to pay back the original amount plus some more.
7. Credit Card: A card that allows the cardholder to borrow money up to a certain limit to buy items. Remember, it's borrowed money that needs to be repaid. Cardholders usually have to pay interest on credit card purchases if they don’t repay it within a certain time.
8. Inflation: It's when things cost more than they used to, so your money doesn't go as far as it did before. For example, if something costs $10 today, due to inflation it might cost $12 next year. This means people need more money to buy the same thing.
9. Loan: An amount of money borrowed that must be repaid, usually with interest. Loans can often be used for big purchases like cars or college tuition.
10. Income: Money that a person earns, typically in exchange for working in a job. It could also be money received from an allowance, or gifts. Income is one part of your budget.  
11. Expense: Money that is spent on goods and services. Tracking expenses is key to effective budgeting.
12. Investment: This is money that’s  invested into something to earn interest, or otherwise hoping the investment will grow over time. Some examples of things that people can invest in are shares, bonds, or real estate. Investments often involve risk and aren’t always guaranteed to grow over time.
13. Tax: Money that people have to pay to the government so that it can provide services like schools, roads and parks.
14. Withdrawal: The act of taking money out of an account, reducing the balance.
15. Deposit: Adding money into an account, increasing the balance.
16. Charity: Donating money to support causes you care about, benefiting those in need.
17. Currency: The system of money in use in a particular country, such as the dollar (like the Australian dollar), euro (in the European Union), or yen (in Japan).
18. Balance: In the context of a bank account, this would be the total amount of money in the account at any given time.
19. Economy: How a country manages its money and resources. Think of it as a big picture of all the spending, saving, and working that happens.
20. Stocks: Tiny pieces of a company that people can buy. Buying stocks makes the shareholder a part-owner of that company. If the company does well, the shareholder’s piece can become more valuable.
21. Savings Account: A  bank or other account that earns interest over time, which could be ideal for keeping money that the account holder doesn’t need immediately.
22. Interest Rate: The percentage of interest that a person earns on savings or the rate of interest that the person will have to pay on loans. It influences how much the person’s money can grow or how much debt can cost.
23. Financial Goal: An objective you want to achieve with money that requires planning and saving. Such as saving for college, a car, or a vacation.

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This dictionary resource is provided for general informational and educational purposes only. The information is a general guide that is provided for illustrative purposes only and should not be relied on. The information does not take into consideration your or anyone else’s objectives, needs or financial situation and does not constitute financial advice or a recommendation. Before acting on any information consider its appropriateness.