Definitions for becoming money smart

Learning about financial terms and definitions can help you feel more confident on your Money Smart journey. Let’s get started!

Img Moneycare Mascot Speechbubble, MoneyCare

Administration Fee

A sum of money charged for a business service or process.

bank loan

An amount of money loaned to you by the bank.

Bank Transfer

The way in which money is moved from one bank account to another.


When a person or business cannot pay back their debts.


Plans for how much money you need for a given purpose or to cover your cost of living.

Business Tender

Plans for how much money you need for a given purpose or to cover your cost of living.

Cash Flow

The increase or decrease in the amount of money that a business, organisation, or individual has.

Cash Flow Projections

A checklist of the money that is expected to come in and out of your business.


A written application to a business to pay you a sum of money which you believe it owes you.


“Occupational Injuries and Diseases Compensation” is a payment that employees receive for injuries, illnesses, or death at work.

Compound Interest

When you earn interest on both your savings and your interest.


A loan from the bank that is used to invest in your small business.

Credit Card

A payment card issued by the bank allows you to buy goods on credit and then pay it back with interest.

Img Moneycare Mascot Percentage, MoneyCare

Credit History

A record of how you managed your past debt payments and credit accounts.

Credit Score

A score from good to bad that shows how well you pay back your debt to a lender. Using this score, lenders determine how much they can lend you.


The amount of money that needs to be repaid.


The amount of value that a business asset loses over time.

Fixed Asset

A physical item that a business buys and uses for a long time.

Gross Profit

The amount of money a business makes after subtracting all its operating expenses.

Hire Purchase

A buying option where the buyer pays for goods in regular instalments.

Income statement

A financial statement that shows a company’s income and expenses.


A contract or a policy that gives financial protection against losses.


The extra amount you pay back on top of your original loan.


Putting money away for a specific amount of time can increase your wealth.


A payment method that allows you to pay in instalments over a period of up to six months.

Letter of Good Standing

An official letter proving that an employer has registered with COID and has made their payments on time.

Img Moneycare Mascot Cash, MoneyCare


An amount of money to be repaid with interest.

Loan term

How long you have to repay your loan.

Lump sum payment

An amount of money paid all at once rather than over time in smaller amounts.


An informal non-registered lender.

Micro Loan

A small loan for a small business.


A short-term credit loan linked to your current account.

Payday Loans

A short-term cash loan with high payback interest rates from a formal or informal lender.


“Pay As You Earn” is a type of income tax that you pay.

Payment Option

A way that customers pay for a product or service.


A document telling an employee how much they earned and how much taxes to pay at the end of each week or month.


Fees paid to municipalities for the services they provide such as sewerage, street lights and roads maintenance.


Formal financial institutions regulated by the National Credit Regulator (NCR) that protects borrowers.


The South Africa Social Security Agency that pays social grants.

Img Moneycare Mascot Papers, MoneyCare


The amount of money left over after meeting all monthly expenses.

Simple interest

Simple interest is the amount that one pays to the borrower for using the borrowed money for a fixed period.

Small business loan

A loan from the bank that is used to invest in your small business.

Social grant

An amount of money paid by the government to people who are elderly, helpless or disabled and unable to work.


A group of people who pay set amounts monthly into a savings pool that gets paid out annually.


“Unemployment Insurance Fund” a short-term financial assistance to a person who becomes unemployed.