Infographic: Financial Glossary for Kids

Previously, we shared a Financial Glossary infographic that focused on a wide range of financial terms that members are likely to come across in their lives. It’s an essential building block of financial education to know and understand these terms. It opens more options and gives members more control over their finances. Many of these terms are a bit too advanced for kids, however, and providing early financial education to children can go a long way to preparing them for a financially successful future. That’s why we’ve created another Financial Glossary for Kids, so that parents can help walk them through some basics and begin teaching their children about how to handle money.

In this infographic, you’ll find many fundamental financial terms and definitions. It’s a great beginning for kids to start learning about some elementary financial ideas as you guide them along. Before you know it, they’ll know enough to apply these ideas in real life and start moving onto more advanced money management lessons. Download the full infographic below and you can start your children on the path to financial literacy today!

Financial Glossary

• Checking account – an account at a safe place, such as a bank or credit union, where money is kept and can be taken out as needed to cover expenses.

• Credit – the ability to borrow money, up to a certain amount, such as through a credit card.

• Credit card – a plastic card allowing the cardholder to borrow money for purchases in exchange for interest charged against the card balance.

• Debt – money that is owed as a result of borrowing.

• Debit card – a plastic card that uses the money in the cardholder’s checking account to fund transactions.

• Interest – the fee for borrowing money from a lender.

• Interest rate – the rate at which interest is charged or paid.

• Investment – an asset or share that is purchased in the hope of earning money, such as a real estate property or a piece of a company.

• Loan – money borrowed from a bank, credit union or private lender. 

• Mortgage – a loan that is used to buy a house.

• Savings account – an account at a bank or credit union to safely keep your money and let your savings grow.  

• Stock – ownership in a company that is sold to raise money. The stock rises in value when the company is doing well and the stockholder can then sell their stock to earn money.