Personal Finance Vocabulary

noun a book in which a bank records the depositor's current account transactions

• She kept meticulous records of her finances in her bankbook.
• I need to update my bankbook with the latest transactions.
• I lost my bankbook, now I have no idea how much money I have.
• His bankbook of memories was filled with moments of joy and sorrow.

adjective in a state of delay or tardiness

adverb in a tardy or delayed manner

• The project fell behindhand due to unexpected delays in the supply chain.
• I'm sorry I'm a bit behindhand on my part of the group project.
• I didn't realize I was so behindhand on my homework until the last minute.
• She felt like she was always behindhand in life, struggling to catch up with everyone else.

noun the lowest amount of money that someone has or is willing to accept

adjective referring to the lowest or final amount

• I am willing to bet my bottom dollar on the success of this investment.
• I'll bet you my bottom dollar that they will win the game.
• I wouldn't put my bottom dollar on that horse winning the race.
• You can count on me to give you my bottom dollar of support in your time of need.

noun a document issued by a bank or financial institution to a depositor as evidence of a deposit, usually with a fixed term and interest rate

• I decided to invest in a certificate of deposit to earn a fixed interest rate over a specific period of time.
• I put some money into a CD to earn some extra cash.
• I stashed some cash in a certificate of deposit to let it grow.
• Investing in a certificate of deposit is like planting a seed that grows into a financial tree.

noun a type of financial institution that offers similar services to a bank, but is owned by its members rather than by shareholders

• I decided to open a savings account at the credit union for better interest rates.
• I'm thinking about switching to the credit union because they have lower fees.
• I heard the credit union is the place to be for getting a good deal on loans.
• Joining the credit union felt like joining a supportive community.

verb to practice frugality or efficiency in the use of resources

• The company is economizing by implementing cost-cutting measures.
• We're economizing by cooking at home instead of eating out.
• I'm trying to save money by economizing on unnecessary expenses.
• She's economizing her time by delegating tasks to others.

verb to burden or weigh down

adjective burdened or restricted in some way

• The project was encumbered by a lack of funding and resources.
• I feel encumbered by all the paperwork on my desk.
• I'm so encumbered with all this stuff, I can barely move.
• Her past mistakes encumbered her ability to move forward in her career.

adjective describing the state of being unencumbered or unrestricted

conjunction used to join two words or phrases together

• After paying off the mortgage, the homeowner finally owned the property free and clear.
• I finished all my assignments so now I'm free and clear to enjoy the weekend.
• Once I broke up with my toxic ex, I felt free and clear of all the drama.
• With a clear conscience, he walked away from the situation free and clear.

adjective characterized by or reflecting economy in the use of resources

• She was known for her frugal spending habits, always looking for the best deals and saving money wherever she could.
• My dad is so frugal, he still uses coupons at the grocery store even though he doesn't need to.
• I'm trying to be more frugal with my money so I can save up for that new phone.
• His frugal use of words made his writing both concise and powerful.

verb to become subject to (something unwelcome or unpleasant) as a result of one's own behavior or actions

• Failure to comply with the company's expense policy may incur penalties.
• If you don't follow the rules, you might incur some extra charges.
• If you keep spending like that, you're gonna incur some serious fees.
• His reckless behavior will eventually incur consequences he can't escape from.

noun a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium

• It is important to have insurance coverage for your home in case of any unexpected events.
• I just got a great deal on car insurance for my new vehicle.
• I can't believe how much I had to pay for insurance on my phone.
• Having a good support system is like having insurance for life's challenges.

noun a word that represents a person, place, thing, or idea

verb a word that expresses an action or state of being

preposition a word that shows the relationship between a noun or pronoun and other words in a sentence

• Many families struggle to make ends meet with the rising cost of living.
• It's tough to make ends meet when rent keeps going up.
• I'm always hustling to make ends meet at the end of the month.
• Juggling multiple jobs is how she manages to make ends meet in this economy.

noun a sum of money saved for the future

• She diligently saved a portion of her income each month to build a nest egg for her retirement.
• He's been putting aside some money as a nest egg for a rainy day.
• I'm trying to grow my nest egg so I can eventually quit my job.
• The company's acquisition of another successful business became a valuable nest egg for future growth.

noun a deficit in a bank account caused by drawing more money than the account holds

• The customer incurred fees for going into overdraft on their checking account.
• I accidentally went into overdraft last week and had to pay a fee.
• I'm always in my overdraft, it's like a never-ending cycle.
• His emotions were in overdraft, constantly draining him of energy and positivity.

verb to extend or stretch beyond a safe or reasonable limit

• It is important not to overextend your resources when planning a project.
• Don't overextend yourself by taking on too many tasks at once.
• I always overextend my budget when shopping for new clothes.
• Sometimes we overextend ourselves trying to please everyone around us.

noun Owing can also function as a noun when referring to the amount of money or something else that is due or owed.

verb Owing is functioning as a verb when it is used to express that something is owed or due.

adjective Owing is functioning as an adjective when it is used to describe something that is yet to be paid or fulfilled.

preposition Owing is functioning as a preposition when it is used to indicate the reason or cause of something.

• The delay in payment is owing to a technical issue with our accounting system.
• She couldn't attend the meeting owing to a prior commitment.
• I didn't make it to the party owing to feeling under the weather.
• The success of the project is owing to the team's hard work and dedication.

noun a repayment of money

verb to repay or return something, typically money

• I will need to pay back the loan by the end of the month.
• I owe my friend some money, so I need to pay them back soon.
• I'll make sure to pay you back as soon as I can, bro.
• Kindness is like a boomerang - it always comes back to you when you pay it forward.

noun a date that is later than the actual date

verb to assign a date that is later than the actual date

• The document was postdated to ensure it would not be processed before a certain date.
• I postdated the check so it wouldn't be cashed until after my payday.
• I told my friend to postdate the message so it looks like she sent it earlier.
• Her actions seemed to postdate her true feelings, creating a sense of confusion.

noun immoral or licentious behavior

• The government's profligacy in spending has led to a significant increase in national debt.
• His profligacy with money always gets him into trouble.
• She's known for her profligacy when it comes to shopping.
• The profligacy of emotions in her writing makes it truly captivating.

adjective making or indicative of timely preparation for the future; frugal

• Being provident is important for ensuring financial stability in the long term.
• It's always good to be provident and save some money for a rainy day.
• Don't be reckless with your spending, try to be more provident with your money.
• In life, being provident with your decisions can lead to better outcomes in the future.

verb to pay back or return money that was borrowed or owed

• The borrower promised to repay the loan within five years.
• I'll make sure to repay you for helping me move next weekend.
• I owe you big time, I'll repay the favor soon.
• Kindness is a currency that we can never repay fully.

noun a secret store of valuables or money

verb to hide or store something in a secret or safe place

• The detective found a stash of stolen goods hidden in the suspect's home.
• I keep a stash of snacks in my desk at work for when I get hungry.
• I heard he's got a stash of cash hidden under his mattress.
• She has a secret stash of courage that she draws upon in times of need.

noun a sum of money that is considered to be large or significant

• He received a tidy sum for his work on the project.
• She made a tidy sum selling her old clothes online.
• I heard he got a tidy sum from his side hustle.
• The investment yielded a tidy sum of profits.

noun a fool, money

verb are, parted

adjective soon

conjunction and

article a

• It is a well-known saying that a fool and his money are soon parted.
• You know what they say, a fool and his money are soon parted.
• Don't be a fool, your money won't stick around for long.
• Just like a fool and his money, some things are destined to be separated.

noun pennies - plural form of penny, a small denomination of currency

verb a word that expresses an action or a state of being

pronoun a word that can function by itself as a noun phrase and that refers either to the participants in the discourse or to someone or something mentioned elsewhere in the discourse

preposition a word governing, and usually preceding, a noun or pronoun and expressing a relation to another word or element in the clause

• It is wise to count your pennies before making any major financial decisions.
• Make sure to count your pennies before going shopping.
• Hey, don't forget to count your pennies before hitting the mall.
• In times of uncertainty, it's important to count your pennies and be prepared for any financial challenges.

noun a numerical representation of a person's creditworthiness, based on their credit history and financial behavior

• Lenders use your credit score to determine your creditworthiness before approving a loan.
• Your credit score can affect whether you get approved for a credit card or not.
• Dude, my credit score is so low, I can't even get a decent interest rate.
• Think of your credit score as a financial report card that shows how responsible you are with money.

noun a shortened form of Financial Literacy, which refers to the knowledge and skills needed to make informed financial decisions

adjective describing something related to financial literacy

• Financial literacy, often referred to as FinLit, is an important skill for managing personal finances.
• I need to work on my FinLit so I can make better decisions with my money.
• My FinLit game is strong after taking that finance course.
• Improving your FinLit is like adding a powerful tool to your financial toolbox.

noun a person, place, thing, or idea

verb a word that expresses an action or state of being

preposition a word that shows the relationship between a noun (or pronoun) and other words in a sentence

• I need to make rent by the end of the month to avoid any late fees.
• I have to hustle this week to make rent on time.
• I gotta grind extra hard to make rent this month.
• She had to get creative to make rent after losing her job.