Finance Vocabulary for ESL Learners

Understanding finance vocabulary is crucial for English as a Second Language (ESL) learners, whether they’re managing personal finances, navigating the business world, or simply reading financial news. This guide introduces some key terms to help build a solid foundation.

Basic Banking Terms

• Account: An arrangement with a bank where you can deposit and withdraw money. Types include checking accounts (for everyday transactions) and savings accounts (for storing money and earning interest).
• Balance: The amount of money you have in your account.
• Deposit: To put money into your account.
• Withdrawal: To take money out of your account.
• Interest: The money a bank pays you for keeping your money in a savings account or the money you pay on a loan.
• Loan: Money borrowed from a bank that you have to pay back, usually with interest.
• Fee: A charge for a service, like an overdraft fee if you spend more money than you have in your account.
• Overdraft: Occurs when you spend more money than is in your account.
• Mortgage: A loan specifically for buying a house.
• Credit Card: A card that allows you to borrow money to make purchases, which you must pay back later, usually with interest if not paid on time.

Investment Terms

• Investment: Putting money into something with the expectation of earning a profit.
• Stock: A share of ownership in a company.
• Bond: A loan to a company or government that pays interest.
• Portfolio: A collection of investments.
• Dividend: A payment made by a company to its shareholders.
• Market: A place where stocks, bonds, and other investments are bought and sold. The “stock market” refers specifically to the market for stocks.
• Risk: The possibility of losing money on an investment.
• Return: The profit or loss made on an investment.

Budgeting and Personal Finance

• Budget: A plan for how you will spend your money.
• Income: The money you earn.
• Expenses: The money you spend.
• Debt: Money you owe to others.
• Savings: Money you set aside for future use.
• Tax: Money paid to the government.
• Inflation: A general increase in prices.

Business Finance

• Revenue: The total amount of money a business earns from selling its products or services.
• Profit: The money a business makes after deducting all expenses from its revenue.
• Assets: Things a company owns, like cash, equipment, and buildings.
• Liabilities: Things a company owes, like loans and unpaid bills.
• Equity: The value of a company after deducting its liabilities from its assets.

This is just a starting point. As you become more comfortable with these basic terms, continue to expand your vocabulary by reading financial news, listening to financial podcasts, and taking courses on personal finance or investing. Don’t be afraid to ask for clarification when you encounter unfamiliar words. Building a strong financial vocabulary is an investment in your future.