Business Matters: Understanding basic financial terms, concepts
Do you know what words like "income", "budget", "savings" and "debt" mean?
They are important words to learn about because they help us understand how to manage our money better.
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Income is the money you get from work or other sources.
Expenses are the things you have to pay for like rent, food, and transportation.
A budget is a plan for how you are going to spend your money. It is like a money map. Savings means the money you save for future things like a new bike or your university education.
Investing is using your money to buy things that will go up in value like stocks or property. Interest is a bit like a fee you pay when you borrow money, or it can be the money you earn on your savings.
A credit score is a number that shows how trustworthy you are with paying back the money you borrow.
Debt is the money you owe to someone else, like a credit card debt or student loan.
Understanding these financial terms can help you make better choices with your money and work towards your financial goals.
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