Glossary · Core Concepts

28 Money Words You’ll Actually Use

You do not need to memorise these like a spelling list. Use them when they help you explain a real money decision clearly.

1. Money

Something people accept to pay for things, receive payment or settle what is owed.

2. Currency

The official money used in a country. In India, that is the rupee (₹).

3. Cash

Physical money—notes and coins—you can hold.

4. Income

Money coming in. It can come from work, a business, selling something, an allowance or a gift.

5. Spending

Using money now for something you buy, do or use.

6. Saving

Keeping some money for later instead of using all of it now.

7. Budget

A plan for money coming in, money going out and money you want to keep for later.

8. Goal

Something specific you are trying to reach with your money, usually with an amount and a timeline.

9. Bank

A regulated financial institution that can hold deposits, move payments and provide loans and other services.

10. Account

A bank record that tracks money held and transactions connected to you.

11. Deposit

Money added to an account.

12. Withdrawal

Money taken out of an account.

13. Interest

Money paid for the use of money. You may earn it on some savings or pay it when you borrow.

14. Price

The amount of money asked for an item or service.

15. Value

How useful, important or worthwhile something is to you—not just what its price tag says.

16. Discount

A lower price than the stated regular price. A discount does not automatically make something a good buy.

17. Need

Something important for health, safety, basic schooling or everyday functioning. Context can matter.

18. Want

Something you would like but can usually delay or live without. Wants are not automatically bad choices.

19. Choice

Picking one option when you cannot have every option.

20. Trade-off

What you accept giving up, changing or delaying to get something else you value more.

21. Scarcity

The fact that money, time and other resources are limited, even when the things we want are not.

22. Opportunity Cost

The next-best option you give up when you choose something else.

23. Digital Payment

Moving money electronically instead of handing over physical cash.

24. UPI

Unified Payments Interface—India’s system for instant bank-to-bank payments through supported apps.

25. PIN

Personal Identification Number—a secret code used to approve or protect access to certain transactions. Keep it private.

26. OTP

One-Time Password—a short-lived verification code. Treat it as secret and do not share it.

27. Scam

A dishonest trick designed to get your money, information or access by misleading you.

28. Impulse Purchase

Buying something suddenly before you have paused, compared or checked whether it fits your plan.