FINANCIAL LITERACY

Glossary

Assets - Things of value that you own. This could be in the form of cash, buildings, land or machinery. 

 

Balance Sheet - A snapshot of a business as of a particular date. It lists all of the business or person's assets and liabilties and calculates the net assets. 

 

Budget - A listing of planned income and expenses for a certain period. 

 

Capital - Wealth in the form of money or property owned by a business or person.

 

Compound Interest - Compound interest can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount.

 

Credit history - A report detailing an individual's or business' past credit arrangements. A credit history is often sought by a lender when assessing a loan application.

 

Credit Limit - A dollar amount that cannot be exceeded on a credit card or the maximum lending amount offered for a loan.

 

Credit Rating - A ranking applied to a person or business based on their credit history that represents their ability to repay a debt

 

Debt - any amount that is owed including bills, loan repayments and income tax.

 

Debt finance - money provided by an external lender, such as a bank or building society.

 

Liabilities - A financial obligation or amount owed.

 

Loan - a finance agreement where a person borrows money from a lender and pays it back in instalments (plus interest) within a specified period of time.

 

Superannuation - money set aside for retirement, that must be paid into a complying superannuation fund.

 

All definitions found on : 

Australian Government n.d., 'Glossary of Key Finanical Terms', [online]

http://www.business.gov.au/business-topics/tax-finance-insurance/business-finances/Pages/glossary-of-financial-terms.aspx