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Glossary

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

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

Balanced BudgetRefers to a budget in which incomings are equal to outgoings.

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

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

Banking SheetA look at your financial accounts.

BankruptcyA legal proceeding involving a person or business that is unable to repay outstanding debts. 

BillsA statement of money owed for goods or services supplied.

BlessedTo 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.

BrokeHaving completely run out of money.

BudgetingProviding (a sum of money) for a particular purpose from a budget.

Compound InterestCompound 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 Reportcredit report is a detailed report of an individual's credit historyCredit 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.

DebtA sum of money that is owed or due. 

DenominationsDescription of currency amount. 

DepositA sum of money paid into a bank or building society account.

DirectionTo know where you are going. 

DistributeTo share or move across.

DreamsA cherished aspiration, ambition, or ideal.

Emergency FundMoney put aside for things that spring up unexpected. 

Exchangean act of giving one thing and receiving another in return.

FaithStrong or unshakeable belief in something.

FinancialRelating to money or how money is managed.

Fixed CostsAn expense / outgoing that does not change in the short term. 

FunctionWork or operate in a proper or particular way.

GamblingTaking risky action in the hope of a desired result

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

GoalsAn aim or desired result.

GrossBefore deductions, such as tax. 

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

HoldingA 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 StatementShows incomings and outgoings during a particular period. 

IncomingMoney that comes in. You receive / earn.

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

InterestA 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.

InvestTo put out money in order to gain profit.

Leisure MoneyDay to day spending and includes fun.

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

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

Limited & Fixed Access AccountsOffering 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 SharkA moneylender who charges extremely high rates of interest, typically under illegal conditions.

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

Money ManagementThe process of managing moneywhich includes expense tracking, investment, budgeting, banking and taxes.

Money Pots / JarsA place your store and manage your money. 

MoneyA current medium of exchange in the form of coins and banknotes.

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

NetAfter deductions, such as tax.

Online AccountAn account managed and funded mainly on the internet. 

OutgoingMoney 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.

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

PurposeSomething that pulls you. A compelling reason to want to do something.

SaveKeep and store up for future use.

Spending TrackerA system for keeping on track of yourspend.

TaxA compulsory financial contribution imposed by a government. 

Tool / VehicleSomething which helps you achieve your goals.

TransferMove from one place to another.

Variable CostsAn expense / outgoing that varies. It is not one consistent price. 

VisionThe ability to think about or plan the future with imagination or wisdom.