An initiative by four Humphrey Fellows, this project provides an inclusive platform for adults to learn essential financial concepts in clear, simple terms. We aim to empower rural communities, entrepreneurs, and underserved adults globally, offering content in seven languages to foster financial literacy, economic stability, and sustainable growth.
We are actively developing the website in English, Spanish, Russian, French, Mongolian, Ewe, and Tajik—and this is the English section.
Vocabulary Hub
Unlock the Language of Finance, One Word at a Time!
To facilitate financial education, the following terms have been categorized into four levels of comprehension, making it easier for users to navigate financial concepts based on their knowledge and experience:
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0 (Basic): Fundamental terms that most people should know.
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1 (Intermediate): More complex concepts requiring some familiarity with financial education.
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2 (Advanced): Technical or specialized terms commonly used in professional financial environments.
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3 (Expert): High-level terms related to financial regulation, AML (Anti-Money Laundering), compliance, Fintech, and digital finance.
Level 0
Fundamental terms that most people should know.
Finance
Day-to-day financial terms
Savings:
Setting aside part of your income for future use. Savings provide security in emergencies and help reach long-term goals.
Income:
Money a person or business earns, whether from work, investments, or selling goods or services.
Expense:
Any money spent to buy goods or services, such as food, transportation, or rent.
Budget:
A plan that organizes income and expenses to use money efficiently and avoid unnecessary debt.
Debt:
Money borrowed that must be paid back, sometimes with interest. It can be from a bank loan, credit card, or borrowed from a friend.
Cash:
Physical money in bills or coins that can be used immediately for purchases.
Credit Card:
A payment tool that allows spending borrowed money from a bank, with the obligation to pay it back later.
Debit Card:
A card linked to a bank account that allows you to spend only the money you have.
Emergency Fund:
Money set aside specifically for unexpected expenses or emergencies.
Financial Goal:
A target you aim to achieve with your money, such as saving for a car or a trip.
Net Salary:
The amount of income a person receives after taxes and deductions.
Financial Literacy:
Knowledge and skills to manage money responsibly and make informed decisions.
Banking
Day-to-day financial customer terms
Savings Account:
A bank account where you put money to save for the future. The bank pays you a small amount of extra money (interest) for keeping it there.
Checking Account:
A bank account used to spend money daily, like paying bills or shopping. It doesn’t usually earn extra money (interest).
Deposit:
Money you put into your bank account to keep it safe or to use later.
Bank:
A financial institution that stores money, offers savings and checking accounts, and provides financial services like loans and withdrawals.
ATM (Automated Teller Machine):
A machine that allows people to withdraw cash, check account balances, and perform other banking transactions without visiting a bank branch.
Lost Card:
When a debit or credit card is misplaced or stolen, requiring immediate reporting to the bank to prevent unauthorized use.
Withdraw:
The act of taking money out of a bank account, usually through an ATM, bank teller, or online banking.
Level 1
More complex concepts requiring some familiarity with financial education.
Finance
Day-to-day financial terms
Interest:
The cost of borrowing money or the reward for saving it. You pay interest on loans and earn it on savings.
Investment:
Using money to buy something expected to grow in value over time, like stocks, real estate, or a business.
Risk:
The possibility of losing part or all of the invested money. Higher returns often come with higher risks.
Inflation:
A general increase in prices, which reduces the purchasing power of money over time.
Depreciation:
The loss of value of something over time, like a car that wears out.
Assets:
Anything of value that can be sold or used, like a house, car, or stocks.
Liabilities:
Debts or obligations to be paid in the future, such as loans or unpaid bills.
Net Worth:
The difference between what a person owns (assets) and what they owe (liabilities). It measures wealth.
Cash Flow:
The movement of money coming in and out of a person’s or business’s finances. Positive cash flow means more money coming in than going out.
Liquidity:
The ease of converting an asset into cash without losing value. Cash is the most liquid asset.
Debt Load:
The amount of debt someone has compared to their income. Too much debt can be risky.
Insurance:
A contract that offers financial protection against loss, such as accidents or property damage, in exchange for a premium.
Premium:
The amount paid for insurance. It’s the cost of being protected from risks.
Tax:
Money that people and businesses must pay to the government to fund public services.
Subsidy:
Financial assistance from the government to support individuals or specific sectors.
Fixed Cost:
Expenses that do not change each month, such as rent.
Variable Cost:
Expenses that change depending on usage, like electricity or gas bills.
Break-even Point:
The sales level at which a business covers all costs, with no profit or loss.
Retirement Plan:
Savings set aside to provide income when a person stops working.
Tax Burden:
The impact of taxes on someone’s income or business profits.
Basic Accounting:
Recording income and expenses to keep track of money and make informed decisions.
Small Business
Day-to-day management terms
SME (Small and Medium Enterprise):
Businesses with a limited number of employees and revenue, smaller than large corporations. SMEs are essential for economic growth and job creation.
Entrepreneurship:
The process of starting and running a business to seize market opportunities or solve specific problems.
Target Market:
A specific group of potential customers the business aims to serve, identified by needs or preferences.
Operational Costs:
Expenses necessary for the daily running of the business, such as salaries, rent, and utilities.
Brand Positioning:
How a business distinguishes its products or services from competitors to create a specific image or value in customers' minds.
Value Proposition:
A clear statement that explains why a customer should choose the business’s product or service over competitors.
Banking
Day-to-day financial customer terms
Loans:
Money borrowed from a bank or financial institution that must be repaid over time with interest.
Scam:
A fraudulent scheme designed to deceive people, often to steal money or personal financial information.
PIN Code of Card:
A personal identification number used to authorize transactions at ATMs or payment terminals.
CVV/CVC (Card Verification Value/Card Verification Code):
A 3-digit security number found on the back of debit or credit cards, used to verify transactions, especially for online purchases. It helps protect against fraud by ensuring the person making the payment has the physical card.
Level 2
Technical or specialized terms commonly used in professional financial environments.
Finance
Day-to-day financial terms
Compound Interest:
Interest that accumulates on the initial amount and on previously earned interest. It’s like earning interest on interest.
Simple Interest:
Interest calculated only on the original amount, without adding previous interest.
Default:
Failure to repay a debt on time, which can lead to penalties or damage financial reputation.
Break-even Point:
The sales level at which a business covers all costs, with no profit or loss.
Investment Portfolio:
A collection of different investments owned to spread risk.
Diversification:
A strategy to reduce risk by investing in different types of assets or sectors.
Return:
The profit earned from an investment. If you invest 100 and get 110 back, your return is 10.
Audit:
A review of financial records to ensure everything is accurate and complies with regulations.
Small Business
Day-to-day management terms
Seed Capital:
The initial funding needed to start a business, covering costs such as equipment, licenses, and legal procedures.
Business Plan:
A detailed document outlining the company’s goals, strategies, products, operations, and financial forecasts.
Supplier Chain:
The network of companies and individuals that provide goods and services necessary for the business to operate.
Break-even Analysis:
A financial calculation that identifies when total revenues will cover all expenses, resulting in neither profit nor loss.
Cash Flow Management:
The process of tracking, analyzing, and optimizing the flow of money in and out of the business. Poor management can lead to liquidity issues.
Inventory Management:
The process of ordering, storing, and using a business’s goods to ensure they meet customer demand without excess stock.
Working Capital:
The funds available to cover day-to-day business operations, ensuring smooth operations between income and expenses.
Sales Forecasting:
Predicting future sales based on historical data, market trends, and other indicators to guide business decisions.
Lean Startup:
A business approach that focuses on building a product or service quickly, testing it in the market, and improving based on feedback.
Tax Compliance:
Adhering to all legal requirements for paying taxes, including filing returns and paying VAT, income taxes, or payroll taxes on time.
Angel Investor:
An individual who provides financial support to small businesses or startups in exchange for ownership equity or convertible debt.
Crowdfunding:
Raising small amounts of money from a large group of people, usually via online platforms, to fund a project or business.
Pivoting:
Changing the business model or product offering in response to market feedback or changes in demand.
Exit Strategy:
A plan for how the business owners or investors will eventually leave the company, such as through selling, merging, or going public.
Banking
Day-to-day financial customer terms
Certificate of Deposit (CD):
A savings option where you agree not to touch your money for a set time. In return, the bank gives you higher interest.
Fixed Income:
Investments, like certain bonds, that pay you the same amount of money regularly.
Bond:
When you lend money to a company or government, and they promise to pay it back with interest after some time.
Stock (Share):
Buying a small part of a company. If the company does well, you can earn money from it.
Dividend:
A part of the company’s profits given to people who own its stock.
Mutual Fund:
A group of people put their money together to buy many different investments, like stocks or bonds.
Forex Market:
A place where people exchange one currency for another, like dollars for euros.
Interest Rate Spread:
The difference between the interest banks charge when lending money and what they pay people for saving money.
Credit Score:
A number that shows how well someone has managed their money in the past. Lenders use it to decide if they can trust you to repay a loan.
Collateral:
Something valuable you promise to give the lender if you can’t pay back a loan, like a car or house.
Underwriting:
A bank or insurer checks if it’s safe to give someone a loan or insurance, based on their financial situation.
Reinsurance:
Insurance for insurance companies to protect them from very large payouts, like in case of natural disasters.
Liquidity Ratio:
A way to check if a company has enough cash or things it can sell quickly to pay its short-term debts.
Hedge Fund:
A group of wealthy people’s money managed together to try and make a lot of profit, sometimes taking big risks.
Chip of Card:
A small embedded microchip in debit and credit cards that enhances security by encrypting transaction data and reducing fraud risks.
Password of Card:
A security feature used for online transactions or mobile banking to verify the cardholder's identity.
Bankruptcy:
A legal process in which an individual or business declares inability to repay outstanding debts, often leading to asset liquidation or restructured repayment plans under court supervision.
Level 3
High-level terms related to financial regulation, AML (Anti-Money Laundering), compliance, Fintech, and digital finance.
Anti-
Money Laundering:
Day-to-day user of the financial services terms
Money Laundering:
The process of hiding where illegal money comes from, making it look like it was earned legally.
Suspicious Activity Report (SAR):
A report that banks or businesses send to authorities when they notice unusual or strange transactions.
Know Your Customer (KYC):
The steps companies take to check who their customers are, to make sure they are not involved in illegal activities.
Beneficial Owner:
The person who actually owns or controls a business or account, even if someone else’s name is on the documents.
Shell Company:
A company that exists only on paper and doesn’t do real business. It’s often used to hide money or avoid taxes.
Politically Exposed Person (PEP):
Someone who holds a high government position or has influence, which could make them more likely to be involved in corruption or bribery.
Sanctions List:
A list of people or organizations that are not allowed to do business because of illegal activities or security risks.
Customer Due Diligence (CDD):
The process of checking a customer’s background and activities to ensure they aren’t involved in money laundering.
Transaction Monitoring:
A system used by banks to track customer transactions and spot anything unusual that might suggest illegal activity.
Anti-Money Laundering Compliance Program:
A set of rules and actions that a company follows to detect and stop money laundering activities.
FINTECH
Day-to-day user of technological financial services terms
Fintech:
A blend of "financial" and "technology," referring to companies that use technology to offer financial services in innovative ways. Fintech aims to make financial transactions faster, cheaper, and more accessible.
Digital Wallet:
A mobile app or online service that stores payment information and allows users to make secure payments without cash or cards, like Apple Pay or Google Wallet.
Blockchain:
A decentralized digital ledger that records transactions across multiple computers, ensuring security and transparency without the need for intermediaries. Commonly used in cryptocurrency.
Cryptocurrency:
A digital currency that uses encryption for secure transactions. It operates independently of a central bank, with Bitcoin and Ethereum being popular examples.
Peer-to-Peer (P2P) Lending:
A method where individuals lend money directly to others via an online platform, bypassing traditional financial institutions.
Robo-Advisor:
An automated platform that provides financial advice or investment management with minimal human intervention, using algorithms to create and manage a diversified portfolio.
Open Banking:
A system where banks share customer data with third-party companies via APIs, allowing consumers to access financial services from multiple providers within a single platform.
Crowdfunding:
A method of raising funds by collecting small amounts of money from many people, usually via the internet, to finance a project or venture.
Neobank:
A type of digital-only bank that operates exclusively online, offering services like checking accounts and loans without any physical branches.
Smart Contract:
A self-executing contract with terms directly written into code on a blockchain. It automatically enforces actions based on predefined rules, reducing the need for intermediaries.
Financial Awareness & Security Tips
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Never share your PIN code – Keep your card’s PIN private and do not write it down where others can find it.
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Do not disclose your CVV/CVC – The 3-digit number on the back of your bank card should never be shared, especially online or over the phone.
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Beware of phone and email scams – Banks will never ask for your PIN, OTP (One-Time Password), or account details via call, email, or text.
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Check ATMs for tampering – Look for unusual devices or loose parts before inserting your card to avoid skimming fraud.
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Use strong passwords for online banking – A void easy-to-guess passwords like "123456" or your birthdate.
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Enable transaction alerts – Activate SMS or email notifications to monitor your banking transactions in real time.
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Be cautious with online shopping – Only enter card details on secure websites (look for “https://” and a padlock symbol).
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Do not lend your bank card to others – You are responsible for transactions made using your card.
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Shred bank statements and receipts – Prevent identity theft by destroying financial documents before disposing of them.
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Report lost or stolen cards immediately – Call your bank as soon as you realize your card is missing to block unauthorized use.