earnverb
urn
To receive money in return for work or services.
"She earns $95,000 a year as a software engineer."
spendverb
spend
To use money to pay for goods or services.
"He spends about 30% of his income on rent."
saveverb
sayv
To keep money rather than spending it, typically setting it aside for future use.
"Financial advisors recommend saving at least 20% of your income."
investverb
in-VEST
To put money into something — stocks, property, a business — with the expectation of a future return.
"She invested her savings in a low-cost index fund."
wasteverb / noun
wayst
To spend money carelessly or on things of little value.
"Buying lottery tickets every week is a waste of money."
splurgeverb / noun
splurj
To spend a large amount of money on something luxurious or non-essential, as a treat.
"After getting the promotion, she splurged on a new laptop."
cut backphrasal verb
kut BAK
To reduce spending in a particular area.
"The company was forced to cut back on travel expenses during the downturn."
put aside / set asidephrasal verb
put uh-SYD / set uh-SYD
To save a portion of money regularly for a specific future purpose.
"He sets aside $500 a month for his emergency fund."
live within your meansidiom
liv WITH-in yor meenz
To spend no more money than you earn; the foundation of financial stability.
"The key to financial stability is simple: live within your means."
paycheck / payslipnoun
PAY-chek / PAY-slip
The payment or document received from an employer showing earnings and deductions. "Paycheck" is American English; "payslip" is British English.
"He received his first paycheck on the last day of the month."
net paynoun phrase
net pay
The amount of money an employee receives after all deductions — tax, pension, insurance — have been taken out.
"Her net pay is $4,200 per month, down from a gross of $5,800."
gross paynoun phrase
grohs pay
The total salary or wages before any deductions are made.
"His gross pay increased by 8% following his annual review."
taxnoun / verb
taks
A compulsory payment to the government based on income, sales, or assets.
"Income tax in the US ranges from 10% to 37% depending on your earnings."
deductionnoun
deh-DUK-shun
An amount subtracted from income before tax is calculated, or taken from a paycheck.
"Pension contributions and health insurance premiums are common paycheck deductions."
pensionnoun
PEN-shun
A regular payment made to a person after they retire, funded by contributions during their working life.
"She has been contributing to her pension since she started working at 22."
retirement fundnoun phrase
reh-TYR-ment fund
Money saved and invested specifically to provide income in retirement.
"He checks his retirement fund balance quarterly to ensure it's on track."
disposable incomenoun phrase
dis-POH-zuh-bul IN-kum
The money remaining after taxes and essential living costs have been paid — what you actually have to spend or save.
"Rising rents have significantly reduced disposable income for young professionals."
financial goalnoun phrase
fy-NAN-shul gohl
A specific, measurable target related to money that a person aims to achieve by a set date.
"Her financial goal is to pay off her student loan within three years."
emergency fundnoun phrase
eh-MUR-jen-see fund
Savings set aside specifically to cover unexpected expenses or loss of income. Experts recommend 3–6 months of living costs.
"Without an emergency fund, a single unexpected bill can derail your finances entirely."
compound interestnoun phrase
KOM-pound IN-ter-est
Interest calculated on both the initial principal and the accumulated interest from previous periods — interest on interest.
"Compound interest works for you when saving and against you when in debt."
dividendnoun
DIV-ih-dend
A portion of a company's profits paid regularly to shareholders.
"She receives quarterly dividends from her investment in several blue-chip stocks."
frugaladjective
FROO-gul
Careful with money; avoiding waste and unnecessary spending. A positive quality in financial English.
"Warren Buffett is famously frugal — he still lives in the house he bought in 1958."
expenditurenoun
ek-SPEN-dih-cher
The total amount of money spent by a person, household, or government. More formal than "spending."
"Government expenditure on healthcare has risen 40% in a decade."
budgetnoun / verb
BUJ-it
A personal or household plan allocating income across spending categories. To budget means to plan your spending.
"She created a monthly budget and tracked every expense in a spreadsheet."