Glossary

Adverts include TV commercials, posters, online adverts, and social media. Companies use them to tell you about what they're selling and why you might want to buy it. The aim is to grab your attention and encourage you to spend your money on it.

A safe place to keep your money at the bank, either at a bank or online, where you can save, spend and manage it.

Before money existed, people swapped goods or services to get what they needed. For example, a farmer might trade vegetables for a fisher’s catch.

Making a plan for how to spend and save your money by keeping track of what you earn and what you spend. A good budget helps cover needs (like food and bills) first, then wants (like toys and treats), and savings. A common rule is the 50-30-20 rule: 50% on needs, 30% on wants, and 20% on savings.

An organisation that sells products or services to make money.

A new idea for a product or service that could make money. 

A simple written plan that explains your business idea, how it will work, and how it will make money, by offering something unique from other existing businesses. It’ll include information like what money and resources you need to make it work.

The money you get back when you give more than the price of something.

A non-profit organisation set up to help people, animals or causes in need.

Sharing ideas and information clearly with others.

Other businesses that sell the same or similar things as your business. 

Coming up with new and imaginative ideas. 

Borrowing money to buy something now and paying it back later, often with extra cost called interest. A credit rating is a scoring system so companies can see how likely you are to pay back debt. 

Lets you borrow money from a lender and repay it over time, usually with interest. You usually pay a fee to use the credit card and pay a fee every time you make a cash withdrawal from a cash machine.

A person who thinks carefully before spending money, knows how to spot a good deal and checks if things are worth buying.  

Thinking carefully about information to make good decisions and solve problems. 

Digital money that you can use to pay for things online, which isn’t controlled by banks or governments. A well-known example of a cryptocurrency is Bitcoin.

A card linked to your bank account that lets you spend money you already have, directly from your account.

Money that you owe to a bank, company, or person, usually from a loan, which must be paid back over time. There is usually interest added so you pay back more than the amount you borrowed. 

A person that comes up with creative ideas and plans what something looks like or how it works.

Giving money, items, or time to help others, a charity or a cause.

Making money by working, selling something, or through investments.

Taking ideas and developing them into a project, event or small business. 

The skills needed to start and run a business. These include creative thinking, teamwork, problem-solving and communication. These skills are also valued by employers in many jobs.  

Identifying new opportunities and finding creative solutions to challenges.

Starting and running a business to make money or solve problems/challenges. An entrepreneur is a person who starts their own business.

The act of lying or pretending to be someone else to get another’s money or personal information illegally. It is when money goes out of your account that you didn’t know about.

Collecting/raising money for a charity, a cause or a project.

Risking money or valuables on a chance-based activity.

Virtual money used in online games. The gaming currency is either bought with real money or earned during the game. 

People set goals for themselves to achieve in the future. They could be about learning new skills, getting a job, or reaching a personal dream. Setting goals helps you stay focused and work towards what you want to accomplish.

The belief that you can improve your skills through practice, learning and effort. Encourages people to learn from mistakes.

When a fraudster uses your personal information to commit theft, fraud or other criminal activities. 

When scammers use emails, text or voice calls pretending to be from a trusted organisation in order to steal money.

Money earned through work, such as wages or salary, or from other sources like investments, business profits, or rental income. It can also include benefits or allowances provided by the government.

These are new ideas or ways of doing things that make things better or easier. They can be clever solutions that help us in everyday life and improve it in some way.

When something or someone makes you feel excited and motivated to do something great. It could be a person, a story, or even a picture that gives you ideas and helps you want to achieve your goals.

A way to protect yourself from big, unexpected costs. You pay a small amount regularly, and if something goes wrong (like an accident, illness, or damage) the insurance company helps cover the expenses.

The percentage of money that is added to debt or savings over time. For example, borrow £100 at 5% interest, pay back £105 in one year. However, if you save £100 in a savings account at a bank with 5% interest, you’ll earn £5 over the year, making your total savings £105.

A brand-new idea or creation that solves a problem.

Putting your money into something, like a business or savings account, with the hope that it will grow over time and be worth more in the future. For example, buying an item to sell later at a higher price is an investment. Saving money in a bank account so it earns interest is another way to invest.

Money borrowed from a bank, company, or person that must be paid back over time, usually with extra cost called interest. A loan creates debt, which means owing money until it’s fully repaid. 

Harmful software often spread through gaming and streaming sites, designed to steal personal information.

This involves telling people about an idea or product in a way that makes them excited and want to buy it. For example, a toy company might create a fun advert to convince children that their game is the best.

How criminals try to hide illegal money by making it look like it came from a legal source. For example, they might use the money to buy things, then sell them, so it looks like the money was earned legally.

Someone who, often without realising it, helps criminals hide money by moving it through their own bank account.

The ability to earn, spend, save, and manage money wisely. These skills include budgeting, saving, and knowing how to make smart financial decisions, from pocket money to future goals.

A type of tax that workers pay in the UK to help fund things like healthcare, pensions, and support if they lose their job. It's like a safety net to make sure people get help when they need it.

Things we must have to live, like food, water, clothing and shelter. Spending money on needs can include paying for groceries, rent, and bills.

The amount you earn after deductions like tax and national insurance.

Interacting with others to exchange information or develop professional contacts.

Pay as you earn is the system in the UK that collects income tax and NI from employees salaries.

These are the ways people pay for things. Some common ones are cash, debit cards or credit cards, bank transfers, and digital payments using apps on your phone. These methods let you buy things in shops or online.

This is when someone feels encouraged or influenced by their friends or people around them to do something, whether it's good or bad. It can make someone feel like they have to act a certain way to fit in or be accepted.

A type of scam where fraudsters send you malicious or fake emails or texts which promise prizes to try to get to you reveal personal information or details.

Sharing an idea in a way that convinces others to support it. For example, you might pitch a new business idea to a group of people to get them to help you fund it.

A small amount of money given regularly to young people, often by parents, carers or other family members. It can sometimes be earned by helping with household jobs and is also known as an allowance.

A career that includes more than one job or role, so that someone has more than one source of income.

A card that is preloaded with a set amount of money, and you can spend only the amount loaded onto the card.

A skill that involves finding solutions to challenges.

This is something that you can hold and buy, like a T-shirt or a snack. A business can sell a product.

The money a business makes after buying and spending what is needed to set it up and run it.

They try to persuade people to buy something, by explaining why it's fun, useful or special.

Putting money aside instead of spending it. If you put this into a bank, you may put it into savings account.

Money you set aside and don’t spend right away, usually for a future goal or an emergency.

A bank account where you can store money securely and earn a small amount of interest over time.

Scams are when you’ve paid a person or company money because you thought they were genuine. Scams can be convincing because criminals are good at using social media or messaging to find out information about you.

This is something someone can do for you, like provide a car wash. A business can sell a service.

When someone makes extra money in addition to their main job or source of income.

This means making thoughtful choices about how you use your money. It’s about buying what you really need, looking for good deals, and saving money for the future instead of spending it all at once.

A type of scam where fraudsters send you malicious or fake text messages to try to get to you reveal personal information or details.

A way of manipulating, influencing or deceiving a person to share confidential information and in the case of a person's finances this could lead to the loss of money through a type of scam.

Fraudsters gather personal information from public social media profiles and use fake prize draws to obtain bank details.

Using money to buy things we need or want.

Giving money to support a person, event, or cause.

Money that can be borrowed from the government for higher education.

Tax is money that people and businesses pay to the government to help pay for public services, like libraries, parks, schools, healthcare and the police. National insurance supports people that are retired or looking for new jobs.

Exchanging things, sometimes using money and sometimes not. In the past, people traded items like spices, metals or cloth, before money was commonly used.

In the context of money this means how much something is worth. Putting coins in value order means sorting them from the smallest amount to the largest amount. For example, you would place 1p coins first, then 5p, 10p, and so on, with £1 coins last.

Things we would like to have but don’t need to survive. For example, someone might save money to buy a new bike or video game.