| Term | Definition |
| Building Societies | Financial institutions owned by their members, established to provide mortgages. |
| Credit Unions | A cooperative owned by a group of savers and borrowers who have something in common, such as living in the same area.loans are affordable and every member has equal say. |
| Saving | Not spending some of your income. |
| Investing | Spending on capital goods e.g. machines. |
| Demand Deposit Accounts | Saving accounts where money can be withdrawn at any time. |
| Time Deposit Accounts | Saving accounts when money can be withdrawn only by giving a minimum amount of notice. |
| DIRT | A tax on the interest on your savings. |
| Savings Certificates | Provided by the post office. People save a lump sum of money for five and a half years tax free. The money is state guranteed and they receive 7% interest |
| Saving Bonds | Provided by the post office.People save a lump sum of money for three years tax free. The money is state guranteed and they receive 2.5% interest |
| Instalment Savings Agreement | People save a regular amount for at least 12 months this money is then left on deposit for five years and earns 7% interest. |
| Shares | Buying a part ownership of a business. |
| Dividend | A payment to a shareholder based on the amount of profit earned by the business. |
| Simple Interest | Interest is paid each year only on the amount saved in that year |
| Compound Interest | Interest is paid each year on the total saved i.e. you earn interest on the interest received last year. |
| Mortgage | A long term loan, usually for the purchase of a house. |
| Bank Overdraft | The bank allows you to spend more than is in your account. You will have an agreed limit and pay interest. |
| Collateral | something of value that the bank can take if you do not pay back your loan. |
| Term Loan | Consumer borrows for a fixed period of time and repays in installments. They own the product. |
| Hire Purchase | A third party buys the product for you, and you pay them back, in installments, with interest. You own the good when the last payment is made. |
| Leasing | Renting on a contractual basis. You never own the good, you pay for the use of the good. |
| Money Lender | A person with a license to lend money. They will typically charge a high rate of interest. |
