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Money Words
Money words explained in plain English, three ways each, so you can pick whichever fits the child asking. Handy when a question arrives and you’d rather not say “I’ll explain when you’re older”.
Nineteen words, with more on the way. If there’s a word you’d like us to explain, do tell us.
- B
- Bank A place that looks after money for people — and lends some of it out.
- Budget A plan for your money.
- C
- Charity An organisation that uses money to help people, animals or causes.
- Compound interest When your interest starts earning interest of its own.
- Credit card A card that lets you pay with money you haven’t got yet.
- Currency The particular kind of money a country uses.
- D
- Debt Money you owe someone else.
- I
- Inflation When things slowly cost more than they used to.
- Interest Money a bank pays you for keeping your money there — or money you pay for borrowing.
- Investing Using money to buy something you hope will be worth more later.
- L
- Loan Money you borrow and promise to pay back.
- N
- Needs and wants Things you must have, versus things that would be nice.
- P
- Pocket money Money some children are given regularly by a grown-up.
- Profit What’s left when you sell something for more than it cost you.
- S
- Saving Keeping money instead of spending it now.
- Scam A trick designed to take someone’s money.
- Share One small piece of a company that you can own.
- Stock market Where shares in companies are bought and sold.
- T
- Tax Money everyone pays towards the things we all share.
Looking for something longer?
Every one of these ideas gets a proper topic page in Money World, with activities to try.