A Little Money Glossary

The most important money words from this book. Keep them close — you will hear them all your life.

Barter

The old system of exchanging goods for goods, before money was invented.

Budget

A plan that decides where each rupee will go before you spend it.

Currency

The official money of a country. Ours is the Indian Rupee (₹).

Deposit

Putting money into your bank account.

Earning

Receiving money in return for work or effort.

Interest

Extra money the bank gives you for keeping your money with them.

Loss

When the money received is less than the money spent.

MRP

Maximum Retail Price — the highest amount a shop can legally charge you.

Need

Something we cannot live without — food, shelter, clothes, education.

Passbook

A small book that records every deposit and withdrawal in your bank account.

Profit

When the money received is more than the money spent.

RBI

Reserve Bank of India — the central bank that issues Indian Rupee notes.

Saving

Keeping aside some money for future use, instead of spending it all.

Spending

Using money to buy things, ideally on needs first and wants later.

Want

Something that makes us happy but is not necessary for living.

Withdrawal

Taking money out of your bank account.