Money and Benefits Market : Jargon Buster
What do the Words Mean?
Below we've listed explanations of some money, housing, and benefits jargon so you can understand all you need to know...
Debt: money that is owed, an outstanding payment or money that is due.
Budget: An estimate of what your income and expenditure is over a period of time.
Current Account: An account where you can take out money without giving advanced warning that you are taking it out.
Savings Account: An account where you will probably earn a higher level of interest.
Interest Charged: Money you will have to pay for borrowing money. Works out as a percentage of the sum you borrowed.
Interest Earned: Money you earn for keeping your money in a bank account or building society - this works out as a percentage of the money you keep in the account.
Loan Shark: Someone who lends money with very high interest rates, often an illegal lender.
Payday Loan: Short term loan with a very high-rate of interest and is repaid using the borrower’s next monthly wage.
Council Tax: A tax on any household in the UK. The money is worked out based on the type of property and the number of people living there. Must be paid to the local council.
Gross Income: This is your total income before tax has been paid or before you have paid bills.
Net Income aka Disposable Income: This is all the money that you have left once your outgoings and tax have been paid.