Glossary

Addiction: The state of being enslaved to a habit or practice or to something that is psychologically or physically habit-forming.

Allocate: In financial terms it is to spread across, distribute and move your money across various accounts / locations.

Balanced Budget: Refers to a budget in which incomings are equal to outgoings.

Bank Account: An arrangement with a bank in which the customer (you) put in and remove money and the bank keeps a record of it. 

Banker: An individual that is employed by a banking institution and participates in various financial transactions, which may or may not include investments.

Banking Sheet: A look at your financial accounts.

Bankruptcy: A legal proceeding involving a person or business that is unable to repay outstanding debts. 

Bills: A statement of money owed for goods or services supplied.

Blessed: To receive or give something of great value… To promote happiness upon.

Borrow: Take and use (something belonging to someone else) with the intention of returning it.

Broke: Having completely run out of money.

Budgeting: Providing (a sum of money) for a particular purpose from a budget.

Compound Interest: Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Credit Report: A credit report is a detailed report of an individual's credit history. Credit agencies collect information and create credit reports based on that information, and lenders use the reports along with other details to determine loan applicants' credit worthiness.

Credit Score: A statistical number that evaluates a consumer's creditworthiness and is based on credit history.

Debt: A sum of money that is owed or due. 

Denominations: Description of currency amount. 

Deposit: A sum of money paid into a bank or building society account.

Direction: To know where you are going. 

Distribute: To share or move across.

Dreams: A cherished aspiration, ambition, or ideal.

Emergency Fund: Money put aside for things that spring up unexpected. 

Exchange: an act of giving one thing and receiving another in return.

Faith: Strong or unshakeable belief in something.

Financial: Relating to money or how money is managed.

Fixed Costs: An expense / outgoing that does not change in the short term. 

Function: Work or operate in a proper or particular way.

Gambling: Taking risky action in the hope of a desired result. 

Give: To offer something to someone. In financial terms, it is cash or asset which is of value…

Goals: An aim or desired result.

Gross: Before deductions, such as tax. 

Habits: Something that you do often and regularly, sometimes without knowing that you are doing it (repeated action).

Holding: A place you hold your money until you move it across your pots / accounts… With your Money Pots at home it also serves as a place you hold your money until you can get change to allocate appropriately across all your Pots.

Income Statement: Shows incomings and outgoings during a particular period. 

Incoming: Money that comes in. You receive / earn.

Interest Rate: the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Interest: A payment made by a borrower to the lender for the money borrowed and is expressed as a rate percent... In simple terms banks borrow your money (the customer) to lend to another customer who pays interest to the bank and in return you gain a piece of that interest.

Invest: To put out money in order to gain profit.

Leisure Money: Day to day spending and includes fun.

Lend: Grant to (someone) the use of (something) on the understanding that it will be returned.

Lifestyle: Someone's way of living; the things that a person or particular group of people usually do.

Limited & Fixed Access Accounts: Offering a better rate of interest if you don’t need access to your money straight away or on a regular basis. Longer the term, greater the return. 

Loan Shark: A moneylender who charges extremely high rates of interest, typically under illegal conditions.

Loan: A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

Money Management: The process of managing moneywhich includes expense tracking, investment, budgeting, banking and taxes.

Money Pots / Jars: A place your store and manage your money. 

Money: A current medium of exchange in the form of coins and banknotes.

Motivator: Something that provides a reason or stimulus to do something.

Net: After deductions, such as tax.

Online Account: An account managed and funded mainly on the internet. 

Outgoing: Money that goes out. Also known as expenditure.

Owe: Have an obligation to pay or repay (something, especially money) in return for something received.

Principal: The original sum of money borrowed in a loan, or put into an investment.

Principle: Something of great value / importance… A moral rule or belief that helps you know what is right and wrong and that influences your actions.

Purpose: Something that pulls you. A compelling reason to want to do something.

Save: Keep and store up for future use.

Spending Tracker: A system for keeping on track of yourspend.

Tax: A compulsory financial contribution imposed by a government. 

Tool / Vehicle: Something which helps you achieve your goals.

Transfer: Move from one place to another.

Variable Costs: An expense / outgoing that varies. It is not one consistent price. 

Vision: The ability to think about or plan the future with imagination or wisdom.