c1Vocabulary Pack

Money & Finance

Banking, budgeting, saving and everyday money matters.

54 words

English vocabulary

Definitions in

Add to my library

54 words

Definitions in: English

Same-language deck – the back side will show definitions, and example sentences will hide the target word.

1
overdraftnounneutral
An arrangement allowing you to spend more than your account holds, up to a limit; the negative balance itself.
I went into my overdraft again this month and the bank charged me for it.
2
overdrawnadjectiveneutral
Describing an account that has gone below zero because more has been withdrawn than was available.
I'm three hundred pounds overdrawn and payday isn't until Friday.
3
direct debitexpressionneutral
An automatic arrangement letting a company collect varying amounts from your account on agreed dates.
I set up a direct debit so I never forget to pay the electricity bill.
4
standing orderexpressionneutral
An instruction to your bank to pay a fixed amount to someone at regular intervals.
I pay my share of the rent by standing order on the first of every month.
5
statementnounneutral
A periodic record from a bank listing all transactions and the balance on an account.
Check your bank statement carefully for any charges you don't recognise.
6
compound interestexpressiontechnicalneutral
Interest calculated on both the original sum and the interest already added, so it grows faster over time.
Thanks to compound interest, starting to save early makes an enormous difference.
7
principalnountechnicalneutral
The original amount of a loan or investment, before any interest is added.
Most of your early repayments cover interest rather than the principal.
8
collateralnountechnicalneutral
Property or assets pledged to a lender as security, which they can seize if the loan isn't repaid.
They used their house as collateral for the business loan.
9
defaultverbtechnicalneutral
To fail to make required payments on a debt or loan.
If you default on the mortgage, the bank can repossess the property.
10
solventadjectiveformaltechnical
Having enough money to pay all your debts; financially sound.
After clearing the loan, the household was finally solvent again.
11
insolventadjectiveformaltechnical
Unable to pay debts as they fall due; effectively bankrupt.
Mounting debts left them technically insolvent by the spring.
12
disposable incomeexpressionneutraltechnical
The money left over to spend or save after taxes and essential bills are paid.
With childcare costs so high, we've got almost no disposable income.
13
frugaladjectiveneutralformal
Careful and sparing with money, avoiding waste; usually approving.
They lead a remarkably frugal life and still manage to travel widely.
14
thriftyadjectiveneutral
Good at managing money so little is wasted; resourceful and economical.
My grandmother was incredibly thrifty and never threw anything away.
15
splurgeverbinformal
To spend a lot of money freely, often on something indulgent.
We decided to splurge on a proper holiday for once.
16
nest eggidiominformal
A sum of money saved up over time, usually for retirement or emergencies.
They've built up a decent nest egg for their retirement.
17
rainy day fundexpressioninformal
Money set aside specifically for unexpected difficulties or emergencies.
Always keep a rainy day fund covering three months of expenses.
18
live beyond one's meansidiomneutral
To spend more money than you earn or can afford.
They've been living beyond their means for years and it's catching up with them.
19
tighten one's beltidiominformal
To start spending less because money is short.
We'll have to tighten our belts until I find another job.
20
reimburseverbformal
To pay someone back money they have spent on your behalf or lost.
The company will reimburse you for any travel costs.
21
take outphrasal verbneutral
To arrange and obtain a loan, mortgage, or insurance policy from a provider.
They took out a loan to cover the renovation.
22
foot the billidiominformal
To pay for something, especially something expensive or that others benefit from.
Guess who ended up footing the bill for the whole party.
23
chip inphrasal verbinformal
To contribute a share of money along with others towards a common cost.
If everyone chips in a tenner, we can cover the gift.
24
cough upphrasal verbinformal
To pay or hand over money unwillingly.
I had to cough up two hundred quid for the repair.
25
dip intophrasal verbinformal
To take a part of an amount of money you had saved or set aside.
We had to dip into our savings to fix the roof.
26
recessionnounneutraltechnical
A period when the economy shrinks and business activity falls for several months.
The country slipped into recession after two quarters of decline.
27
depreciateverbtechnicalneutral
To fall in value over time, as with cars, equipment, or a currency.
A new car depreciates the moment you drive it off the forecourt.
28
appreciateverbtechnicalneutral
To rise in value over time, as with property, investments, or a currency.
Property in that area has appreciated enormously over the decade.
29
assetnountechnicalneutral
Something of value that you own, such as property, savings, or investments.
Their main asset is the flat they bought years ago.
30
liabilitynountechnicalformal
A debt or financial obligation that you owe to others.
Once you subtract your liabilities, your net worth isn't huge.
31
capitalnountechnicalneutral
Money or assets available to invest or use to generate more wealth.
You need a fair amount of capital to get started in property.
32
yieldnountechnicalneutral
The income or return produced by an investment, usually expressed as a percentage.
These bonds offer a higher yield but carry more risk.
33
returnnountechnicalneutral
The profit or gain made on money that has been invested.
The fund delivered a solid return of eight percent last year.
34
purchasing powerexpressiontechnicalneutral
The amount of goods and services that a sum of money can buy, which inflation erodes.
Inflation has quietly eaten into our purchasing power.
35
liquiditynountechnicalformal
How easily an asset can be turned into cash without losing value; available ready money.
Property is a poor choice if you need liquidity in a hurry.
36
in the redidiominformal
Owing money or having a negative balance; the opposite of being in profit.
We've been in the red ever since the boiler broke.
37
in the blackidiominformal
Having money, with a positive balance and no debt.
After clearing the card, I'm finally in the black again.
38
break the bankidiominformal
To cost more than you can afford; usually used in the negative to mean something is affordable.
A weekend away won't exactly break the bank.
39
pay through the noseidiominformal
To pay far too much for something.
You'll pay through the nose for parking in the city centre.
40
strapped for cashidiominformal
Temporarily short of money.
I'm a bit strapped for cash until I get paid.
41
splash outphrasal verbinformal
To spend a lot of money on something special or indulgent.
We splashed out on a fancy dinner for the anniversary.
42
fork outphrasal verbinformal
To pay for something, often a lot and reluctantly.
I had to fork out for a whole new washing machine.
43
instalmentnounneutral
One of a series of regular payments made to gradually pay off a larger sum.
You can pay for the sofa in twelve monthly instalments.
44
dividendnountechnicalneutral
A share of profits paid out to people who own shares in a company.
The shares pay a modest dividend twice a year.
45
squanderverbneutralliterary
To waste money, time, or opportunities carelessly and pointlessly.
He squandered his inheritance within a couple of years.
46
fritter awayphrasal verbinformal
To gradually waste money or time on small, trivial things without noticing.
I frittered most of my wages away on takeaways and taxis.
47
set asidephrasal verbneutral
To deliberately keep an amount of money for a particular future purpose.
We set a little aside each month for the children's education.
48
bail outphrasal verbneutral
To rescue a person or organisation from financial trouble by giving them money.
His parents keep bailing him out whenever he overspends.
49
equitynountechnicalneutral
The value of a property you actually own, after subtracting any mortgage owed.
After ten years of payments, they have plenty of equity in the house.
50
deflationnountechnicalneutral
A general fall in prices across the economy over time, the opposite of inflation.
Prolonged deflation can be just as damaging as runaway inflation.
51
austeritynounformaltechnical
A policy or condition of severe spending cuts and economic restraint, often imposed by governments.
Years of austerity left public services badly stretched.
52
cost an arm and a legidiominformal
To be extremely expensive.
The repairs cost an arm and a leg.
53
windfallnounneutral
An unexpected sum of money that comes to you, such as a bonus, gift, or inheritance.
She used the windfall to clear her debts.
54
installmentnounneutralAmerican English
American English spelling for one of several scheduled partial payments.
She paid for the car in twelve monthly installments rather than all at once.
She spread the car payment across twelve equal monthly amounts.

Learn anywhere, even offline

Download decks to your phone and practice without internet. Perfect for commutes, flights, or anywhere with spotty connection.

App Store Google Play

Money touches nearly every part of daily life, and this pack gives you the vocabulary to manage it in English. Learn the language of banking, budgeting and spending – accounts, transfers, income and expenses – along with the basics of saving and borrowing. Growing from intermediate to advanced, it prepares you to handle your finances, discuss plans, and talk about money with confidence.