Finance

[walley]

Hey guys, im in 7th grade, and were learning about finance. I am still getting confused between things like:
Deposit
Loan
Mortgage
interest
investment

I was just wondering if someone could help explain these things? I have a test soon, and I really need to get studying.

Thanks!

Ps. If there are any other financial words that I have not mentioned, please also post as well, I think I may need them in the future!

 

[JeffM]

Hey guys, im in 7th grade, and were learning about finance. I am still getting confused between things like:
Deposit This usually means money lent to a bank.
Loan This means any transaction in which A (the lender) provides B (the debtor) with something now, usually money, in return for B's promise to provide something, usually more money, in the future.
Mortgage A mortgage is a contract that allows a lender to become owner of some piece of real property currently owned by the debtor if the debtor does not keep his promise. Technically, it is a lien, not a loan, but it frequently is used to mean a loan associated with a mortgage.
interest Huge books have been written on this topic. But, keeping it simple, interest is how much the debtor agrees to pay to the lender in the future over and above what the lender pays to the debtor now.
investment This means some expenditure of money, time, or effort now in the reasonable hope of receiving something better in the future.

I was just wondering if someone could help explain these things? I have a test soon, and I really need to get studying.

Thanks!

Ps. If there are any other financial words that I have not mentioned, please also post as well, I think I may need them in the future!

.

 

[walley]

Appreciated

Thanks guys, this helped me a lot! I aced the test! Sorry if this sounded a bit noobish, but I went overseas and missed a lot of work Thanks again!