Definitions

MONEY-Anything people use to buy goods and services, or to pay others. It’s a way to store and measure value. 

CARD- A plastic card issued by a bank that lets you access your money, make payments, or borrow money.

                                                   ↙                                         ↘ 

                                                      credit card -                               debit card-

                        Lets you borrow money up to a limit                    Takes money directly from your bank

                                  to make purchases now and pay later                  when you buy something or withdraw cash.

Bank
A financial institution that keeps your money safe, helps you manage it, and offers services like savings accounts, loans, and debit or credit cards.

Account
A record at a bank or financial service where your money is stored and tracked. Common types include checking accounts (for daily spending) and savings accounts (for saving over time).

Income
The money you earn or receive, such as from a job, business, allowance, or gifts.

Expense
Any money you spend—whether it's on needs like food and rent, or wants like clothes and entertainment.

Loan
Money borrowed from a bank, person, or company that must be paid back over time, usually with added interest.

Credit Score
A number that represents how responsible you are with borrowing and paying back money. A higher score means better chances of getting approved for loans or credit cards.

Interest
The extra money paid over time when borrowing (you pay it) or earned when saving (you receive it). It’s calculated as a percentage of the amount borrowed or saved.

Debt
Money you owe to someone else, often from loans or using a credit card. Managing debt well is key to financial health.

Transaction
Any time money moves—whether you’re spending, receiving, transferring, or saving it. Each transaction is recorded in your account.

Digital Wallet
An app or service (like Apple Pay, Google Pay, or PayPal) that stores your payment information securely and lets you pay with your phone or device.

SCENARIO!

Jaya, 15, was super pumped about buying her own iPad so she could start selling digital art online. But she only had $15 in cash and no clue how to handle money like a pro.

Her first income came from babysitting her neighbors—$50 a weekend. Her mom helped her open a bank account so she could keep her money safe. She got a debit card linked to the account and even set up a digital wallet on her phone for quick payments.

Jaya tracked every transaction—from buying snacks (expenses) to saving for her iPad. One time she accidentally swiped her credit card for an online art brush subscription, forgetting she needed to pay it back later.

Her older cousin explained how credit cards let you borrow money, but you have to pay back with interest or get stuck in debt. He told her about the credit score—a number that shows how good you are at handling borrowed money. A good score makes borrowing easier; a bad one makes it harder.

Jaya was careful not to overspend. She knew every transaction mattered. She also learned about loans—borrowing money for big stuff like college but paying extra with interest.

After a couple of months, Jaya had saved enough in her bank account to buy the iPad outright—no loans, no credit card debt.