MONEY VOCABULARY

Income (noun): Money received regularly from work or investments

Example: My monthly income allows me to cover all my basic expenses comfortably.

Expense (noun): The cost of something; money spent

Example: Rent is my biggest monthly expense.

Savings (noun): Money that is not spent but kept for future use

Example: I always try to put 20% of my salary into savings.

Budget (noun/verb): A plan for managing income and expenditure

Example: I created a strict budget to avoid unnecessary spending.

Debt (noun): Money owed to someone

Example: After University, I had a huge student loan debt to repay.

Loan (noun): Money borrowed from a bank or individual

Example: We took a loan to buy our first house.

Interest (noun): Extra money paid for borrowing or earned on savings

Example: The interest rate on my savings account is quite low.

Income tax (noun): Tax paid on earnings

Example: A large portion of my income goes to income tax every year.

Wealth (noun): A large amount of money or valuable possessions

Example: He inherited great wealth from his grandparents.

Currency (noun): The money system used in a particular country

Example: The local currency in Japan is the yen.

Broke (adjective – informal): Having no money

Example: I was completely broke by the end of the month.

Afford (verb): To have enough money to pay for something

Example: I can’t afford to buy a new phone right now.