Amazing Kids! Magazine

Word Booster – Money

By Olivia Pineda, Assistant Editor

 

Here are a few terms that are almost always associated with money:

Loan (n.) – the act of lending, something lent or given, like a sum of money.

To help Charlie start his lemonade stand, his parents loaned him $30 to buy lemons and cups, which he could pay back once he’d sold enough lemonade.

Interest (n.) – a charge for the use of credit or borrowed money.

When Delilah borrowed money from the bank, the bank charged Delilah interest for every month that the money was borrowed.

Bank (n.) – an institution for receiving, lending, exchanging, and safeguarding money.

Doreen went to the bank in order to take some money out of her bank account.

Currency (n.) – something that is used as a medium of exchange, like money.

Although you may think that bills are the only form of currency used, gold and silver can be used as currency as well in some cases.

Invest (v.) – to put money to use through purchase or expenditure.

The Smiths invested in a big, old house to raise their children in.

Check (n.) – a slip or ticket that shows the amount owed.

Harold wrote a check to pay for his new car.

Debt (n.) – something that is owed.

Mrs. Nelson had a debt of $50 to her neighbor that had loaned her money a few months ago to help pay for her cat.

Credit (n.) – confidence in a person’s ability to pay what he or she owes.

The banker knew Sophie had good credit, so he loaned her money to buy a new house.

Debit (v.) – to charge with a debt.

Since Raymond paid with his credit card, the store debited his bank account for the charge that he owed.

Bankrupt (adj.) – unable to pay off debts.

Sandra had no more money, but she still owed the bank a lot of money for her house; therefore, she was bankrupt.