Bank Lingo

Below are some terms that you will find in Kid's Korner. If you come across a word you do not understand that is not in this list, please e-mail us by clicking on "Question for the Banker"!

Balance: noun & verb

Balance, as a noun, refers to the amount you have in your bank account at any given time. If you have $38.00 in your savings account, you have a balance of $38.00.

Balance, as a verb, refers to the act of matching the amount of money the bank shows you have in your account, to the amount of money you have recorded in your account register. Back to What is a Checking Account?

Bartering: verb

Bartering is the trading of goods and services for other goods and services. If you trade your peanut butter and jelly sandwich and your bag of chips for your friend’s bologna and cheese sandwich, you are bartering. Back to What is Money?

Cancelled Check: noun

A cancelled check is a check you have written that has been turned in to the bank and taken out of your account. A cancelled check is as good as a receipt, because it is proof that you paid for something. Back to What is a Checking Account?

Check: noun

A check is a special piece of paper that you fill out and sign when you need to pay for something. Your signature on the check authorizes the bank to take the amount the check is written for from your account to pay the person or place to which you wrote the check. Back to What is a Checking Account?

Creditor: noun

A creditor is a person or a company who grants you credit. For example, if you get a loan from a bank, the bank becomes your creditor. Back to What is Credit?

Creditworthiness: noun

Creditworthiness refers to your ability to get credit. For example, if your credit history is good, and you have proven yourself to be responsible and able to pay back a loan, you are creditworthy. Back to What is Credit?

Currency: noun

Currency is the general term for all of the paper and coin money that is currently in circulation. Back to What is Money?

Deposit: noun

A deposit is any placement of cash or checks in a bank. If you have a $10.00 check and a $5.00 bill you want to put into your savings account, you have a deposit of $15.00. Back to What is a bank? Back to What is a Savings Account?

Down Payment: noun

A down payment is an amount of money that is offered at the time a loan is requested. For example, if you want to buy something that costs $1000.00, and you only have $250.00 in savings, the $250.00 becomes your down payment, and you only need to borrow $750.00 to buy what you want. Back to Why is Saving Important? Back to What is Credit?

Expenses: noun

Expenses are items on which you spend your money. If you buy $3.00 worth of candy, and spend $3.00 on a video rental, your expenses total $6.00. Back to What is a Checking Account?

FDIC Insured: adjective

FDIC stands for Federal Deposit Insurance Corporation. If a bank is FDIC insured, it means that each person's deposits are insured or guaranteed up to $100,000. Back to What is a Bank? Back to Are There Other Ways to Invest Money?

Goods: noun

Goods are physical items you purchase such as comic books and beanie babies. Back to What is Money?

Income: noun

Income is the amount of money you have coming in on a regular basis. If you get an allowance of $5.00 each week , and you earn $10.00 a week working around the house, your total weekly income is $15.00. Back to What is a Checking Account?

Interest: noun

Interest is money you receive for allowing the bank to use your money while it is on deposit. It is also the money you pay the bank in addition to the money you borrow when you get a loan. Back to What is a Bank? Back to What is a Savings Account?

Interest Rate: noun

An interest rate is the percentage rate that is used to calculate the amount of interest received on deposits and paid on loans. Back to What is a Savings Account?

Invest: verb

To invest is to put money into something that you think will increase in value over time. For example, if you invest in a Certificate of Deposit (CD), you know that you will earn interest. When the CD reaches its maturity date, it will be worth more than when you originally opened it because of the interest you will have received. Back to Are There Other Ways to Invest Money?