Just as we use the alphabet “A for Apple” “B for Ball” etc. to teach our kids the English language, let’s also teach them the language of money using the ABCs of money.
A – ASSET
Assets are the things you own, and can be sold to get money.
B – BANK
A place that looks after people’s money, keeps it safe and lends money to people to help them buy things like houses.
C – CURRENCY
Consists of paper money and coins. It is the official money of a country. Each country has its own form of currency –
India – Rupee
USA – Dollar
United Kingdom – Pound
D – DEPOSIT
A deposit is when people put money IN the bank.
E – EARNINGS
The money people receive by doing any work is called earnings.
F – FINANCE
Management, creation and study of money.
G – GOODS
Things that people make or grow to sell. Like Toys, Laptops, Apple etc.
H – HEDGE
A plan to reduce risk.
I – INTEREST
A reward for saving and cost of borrowing.
J – JOINT ACCOUNT
A bank account, where money is shared by two or more people.
K – KYC
KYC means Know Your Customer. A process of verifying the identity of the customer.
L – LOANS
Money that people borrow from someone for a specific reasons with a promise to pay back.
M – MONEY
Money is what people use to buy things. Medium of exchange.
N – NEEDS
Things people must have to live.
O – OPPORTUNITY COST
When people give up something to do something else.
P – PROFIT
Income – Expenses = Profit
The money made by a business.
Q – eQuity
Represents ownership in a company.
R – RISK
A chance of getting hurt or losing something.
S – SAVING
The money people sets aside and decides not to spend.
T – TAX
A sum of money that people pay to the government for the services provided by the government.
U – UNBANKED
When a person does not have or use a bank account.
V – VALUATION
The process of determining the worth of an asset.
W – WANTS
Things that are nice to have but not necessary to survive.
X – eXpense
The money spent to purchase things.
Y – YIELD
The extra money people make by investing their money.
Z – ZERO BALANCE ACCOUNT
A bank account in which people can have “0” money.
Teaching children the basic words of money from an early age will help them as they grow and enter the real world. Finstart is a platform where your child can learn the language of money in a fun and interactive way.
Contact us to know more about our programs.
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