FULL Period 1 6.2 Basic Money Terminology A1

Theory for Basic Money Terminology Lesson 

Here’s some very simple and basic theory you can present to your students:

What is Money?

• Money is what we use to buy things.
• We use money to pay for food, clothes, cars, and many other things.
• Money can be cash (coins and notes) or in a bank.

Price and Cost

• Price is how much money you need to pay to buy something.
  • Example: “The price of coffee is $2.”
• Cost is the same as price.
  • Example: “The cost of a new phone is $300.”

Spend and Save

• When you spend money, you use it to buy something.
  • Example: “I spend money on food.”
• When you save money, you keep it for later.
  • Example: “I save money for a vacation.”

Bank and Account

• A bank is a place where you keep your money.
  • Example: “I put my money in the bank.”
• An account is your money in the bank. You can check how much money you have.
  • Example: “My bank account has $500.”

Salary

• Salary is the money you get for working.
  • Example: “I get my salary every month.”

Budget

• A budget is a plan for how to use your money. You decide how much money you will spend and how much you will save.
  • Example: “My budget for food is $100 per month.”

Loan

• A loan is money you borrow from a bank or from a person. You must give it back later.
  • Example: “I need a loan to buy a car.”