Money glossary
The words adults throw around — explained in plain English.
- APR
- Annual Percentage Rate — the yearly cost of borrowing money, including interest and some fees.
- Budget
- A plan for where your money goes each month before you spend it.
- Checking account
- A bank account for everyday spending — debit card, bills, direct deposit.
- Compound interest
- Interest earned on your interest. Small savings grow faster over time.
- Credit score
- A 300–850 number lenders use to judge how reliably you repay debt.
- Debit card
- Spends money directly from your checking account. No borrowing.
- Direct deposit
- Your paycheck sent straight into your bank account.
- Emergency fund
- Savings set aside for surprises like car repairs or losing a job.
- Gross pay
- What you earn before taxes and deductions are taken out.
- Net pay
- Your take-home pay — what actually lands in your account.
- High-yield savings
- A savings account that pays much more interest than a regular one.
- Overdraft
- Spending more than is in your account — often comes with a fee.
- Security deposit
- Money a landlord holds in case of damage; usually returned when you move out.
- W-4
- The form you fill out at a new job so your employer withholds the right taxes.
- Credit utilization
- How much of your credit limit you're using. Under 30% is healthier.
- Minimum payment
- The smallest amount you must pay on a card to avoid penalties — interest still grows.