IELTS Vocabulary: Money and Finance Vocabulary

Expand your understanding of financial concepts with this list of essential terms and their definitions.

• Currency: The type of money used in a particular country, such as dollars, euros, or yen.
• Exchange Rate: The value of one currency compared to another when exchanged.
• Interest: The additional money earned on savings or charged on borrowed money, typically as a percentage of the amount.
• Credit Card: A bank-issued card that allows you to borrow money to make purchases, repayable with interest.
• The Cost of Living: The average cost of essential goods and services, such as housing, food, and transportation, in a specific area or country.
• Fee: A fixed charge for a service, such as tuition, legal advice, or membership.
• Cash: Physical money in the form of notes and coins.
• Invest: To allocate money with the expectation of generating a profit or income, such as in stocks, property, or business ventures.
• Bank Loan: Money borrowed from a bank, which must be repaid with interest over an agreed period.
• Bankrupt: A legal state in which an individual or organization is unable to repay their debts.
• Pension: A regular payment received after retirement, funded by prior contributions from the individual and/or their employer.
• On Credit: Buying goods or services with an agreement to pay later.
• Mortgage: A loan specifically for purchasing property, repaid with interest over a long period.
• Overdraft: A facility that allows you to withdraw more money than you have in your bank account, up to an agreed limit, often with a fee.
• Rebate: A partial refund given after an overpayment, such as taxes or utility bills.
• Credit Crunch: A financial situation where borrowing money becomes difficult due to limited availability of credit.
• Deposit: An upfront payment to secure a purchase or a sum of money placed in a bank for safekeeping.
• Expenditure: The total amount of money spent on goods and services.
• Income Tax: A tax imposed by the government on personal earnings or business profits.
• Black Market: An illegal trading environment where goods or services are exchanged outside official regulations.
• Worthless: Lacking any value or usefulness.
• Priceless: So valuable or unique that its worth cannot be determined in monetary terms.
• Well Off: Financially comfortable or wealthy.
• Debit Card: A bank-issued card that allows direct access to your bank account for purchases or cash withdrawals.

Practice Money and Finance Vocabulary

Test your understanding of the terms by filling in the blanks with the correct word. Share your answers in the comments section below!

1. You can buy the laptop ________ ________, which means you’ll pay for it in monthly installments.
2. The value of one country’s ________ can fluctuate depending on the exchange rate.
3. Despite not being a millionaire, they are quite ________ ________ and live comfortably.
4. To hold the apartment, we placed a ________ and will pay the remaining amount next month.
5. You can check the ________ ________ before converting your money to another currency.
6. The lawyer charged a ________ for their professional services during the consultation.
7. Many people choose to ________ in stocks, hoping to grow their wealth over time.
8. After the scandal, the company’s shares became ________ and were no longer traded.
9. When you save money in a bank account, you may earn ________ on your savings over time.
10. I used my ________ ________ to make an online purchase and will repay the amount next month.
11. The ________ ________ in large cities is often higher than in smaller towns due to housing costs.
12. Using a ________ ________ is safer than carrying large amounts of cash during travel.
13. Please pay in ________; we are not accepting card payments today.
14. After losing all their money in a failed venture, the company declared they were ________.
15. We applied for a ________ ________ to help cover the cost of starting our business.
16. Employees contribute to a ________ fund to ensure they have an income after retirement.
17. The tax office issued a ________ because I had overpaid on my taxes last year.
18. To purchase a house, we had to secure a ________ from the bank.
19. Be cautious with your ________, as exceeding your bank balance can result in fees.
20. The ________ ________ made it harder for small businesses to get loans during the financial crisis.
21. Our monthly ________ includes rent, utilities, and groceries.
22. The government requires individuals to pay ________ ________ on their earnings annually.
23. You can often find rare or illegal goods sold on the ________ ________.
24. The painting is ________; its value cannot be measured in money.