It's easy to be MoneyMinded when you understand the language of finance. Click on the letters below to learn more about the words that relate to or describe money and finance matters.
Advocate A person who supports, acts or speaks on another person's behalf or assists them to communicate with authorities.
Amount due The amount of money that the debtor has to pay on an outstanding account.
Annual percentage rate of interest The rate at which interest is charged over a yearly period. Interest is usually calculated on a daily basis and may be charged monthly, quarterly or annually.
Arrears The amount you are behind with regular payments (i.e. past the due date). This differs from the balance owing.
Asset Property that a person owns or has a right to from which a benefit can derive. A net asset is owned outright. A liquid asset is in the form of cash or readily convertible into cash.
Asset (secured) An asset that has been offered by a debtor as security on a loan. For example, if a person takes out a loan to buy a car, they may offer the creditor the car as security' for that loan. If the person fails to repay the loan, the creditor may claim the security (in this case the car) and sell it to recover some or all of the outstanding debt. A secured asset cannot be sold by the debtor without the written permission of the creditor. When a secured asset is sold, the creditor holding the security gets paid first, to the value of the outstanding balance plus fees. Only the loan that is secured can be cleared by this security.
ATM card A card that allows people to access their accounts via ATMs and EFTPOS.
Australian business number (ABN) A number issued to registered businesses in Australia by the Australian Tax Office(ATO). Each business has its own ABN and must use this as an identifier on official paperwork and transactions and for GST purposes.
Australian Securities & Investments Commission (ASIC) The consumer protection regulator for financial services in Australia. It protects investors, superannuation members, depositors and insurance policy holders. It also regulates and enforces laws that promote honesty and fairness in financial products and services, in financial markets and in Australian companies.
Automatic deduction See Direct debit.
Automatic Teller Machine (ATM) A machine placed in Supermarkets, outside banks and other public places that can be used to withdraw money from an account without going into a bank. Some ATMs accept cash deposits and cheques, provide current account balances, and can be directed to transfer money between accounts. Many ATMs can be accessed 24 hours a day.
