Topic 10: Money terms made easy

Glossary of financial terms

ATM	Automatic Teller Machine mainly used to dispense cash from an account by using a card with PIN access.
Balance	1. Used to describe what is owed on a statement of account (commonly known as a bill). 2. The difference between money received and paid. Can be positive or negative.
Bank	A financial institution providing a range of services for customers who deposit and withdraw money, including loans.
Bank account	A secure arrangement with a particular bank to deposit or withdraw money from that bank. A bank account can only be accessed by the owner of the account, using specific account information such as PIN or signature.
Bank fees	Charges for providing particular banking services.
Bank statement	A summary showing the debits and credits to your bank account.
BPAY	PAYment of Bills by transferring funds from your savings account to another bank account using the secure BPAY internet or telephone process.
Budget	1. A plan of expected income and expenses for a period of time. 2. A plan for how a person will spend and save their income.
Cash	Money in the form of notes and coins.
Cash register	A machine that records the value of transactions and provides a receipt. Usually computerised to give additional sales information. It can also operate as a cash box.
Cashier	A person operating the receipt and payment of money.
Cheque	A written promise to pay funds from a nominated bank account. Must be signed by the owner of the bank account.
Cheque account	A transaction account with a cheque book facility.
Consumer	An individual who purchases goods and services.
Credit	1. Accessing money on loan to make purchases. 2. A deposit into a bank account.
Credit card	A plastic card that allows the owner to get a loan when they use the card to pay for goods and services.
Credit union	A financial institution, run by members, that accepts deposits, allows withdrawals and lends money to members.
Contract	A legal agreement covering the payment of money in return for goods and services.
Debit	A payment out of a bank account.
Debit card	A plastic card that allows you to buy goods and services using money in your account. Can be used instead of a credit card.
Debt	Money that a person must repay.
Deposit	Money paid into an account.
Deposit slip	A form used to record payments into an account.
Direct debit	Funds transferred from one account to pay another used to pay a bill.
EFTPOS	Electronic Funds Transfer at Point Of Sale. Withdrawing a cash payment from your account when using a transaction card to pay for goods or services.
Enterprise	1. A business involved in buying and selling goods or services. 2. Activity aimed at making a profit.
Expenses	Costs associated with an activity.
Goods	Items available for purchase.
GST	Goods and Services Tax - a 10% government tax included in the purchase price of many goods and services.
Income	Take home pay from earnings, profit or other revenue.
Interest	1. Return on money saved. 2. Cost of borrowing money.
Internet banking	Being able to access and conduct transactions on your bank account through a secure internet link.
Lay-by	Items held by a retailer that are being paid off by the purchaser until the full price has been paid. Often used by those who do not use credit.
Loan	Money given to someone on condition that it is paid back later. Interest and fees are added to loans taken out with a financial institution.
Minimum balance	An amount of money in your account needed for that account to stay open or to avoid bank fees.
Money	Minted coins and bank notes from Treasury.
Passbook	A record for customers of transactions in a savings account.
Periodic payment	Payments made automatically at regular intervals.
Phone banking	Being able to access and conduct transactions on your account by telephone.
PIN	Personal Identification Number. A code used to protect access to personal information and funds.
Profit	The proceeds of a financial activity after all expenses have been paid.
Purchase	The exchange of money for goods or services of equivalent value.
Sales contract	An agreement between two or more parties for the sale of goods or services.
Savings	Money left over from income after expenses and debts have been paid. It is often necessary to reduce spending to save.
Savings account	A bank account that accepts deposits and allows withdrawals and sometimes provides interest on the balance in the account.
Scanner	An electronic machine that reads the barcode of a product at point of sale.
Services	Actions people provide for others for a fee.
Signature	The writing of your name by hand.
Tax	A proportion of income paid to the government to provide services for the community such as hospitals and schools.
Transaction	The transfer of money usually in return for goods and services of equivalent value.
Withdrawal	Taking money from an account.
Withdrawal slip	Record of money taken from an account.