1️⃣ MONEY
Definition? Money is anything that is widely accepted as a medium of exchange for buying goods and services. It acts as a unit of account (to measure value) and a store of value (to save for future use). Money removes the difficulties of the barter system by providing a common standard of value. It can exist in many forms such as cash, coins, bank deposits, digital money, and UPI payments, and is issued or regulated by the government or central authority.
What is it? Money is something that we use to buy goods and services and pay debts.
Types: Cash, Bank money, Digital money
When? Buy, sell, save, pay
Who? Everyone
Why? Easy trade, avoids barter, stores value
How? Government guarantees value
Quiz (5 Questions)
1. Money is used to?
2. UPI is?
3. Money avoids?
4. Who uses money?
5. Who guarantees money?
2️⃣ INTEREST
Definition? Interest is the extra amount of money paid or earned in addition to the original amount (principal) when money is borrowed or saved. When a person borrows money, they pay interest to the lender as a cost of using that money. When a person saves or invests money, they earn interest as a reward for postponing spending. Interest depends mainly on the principal amount, rate of interest, and time period.
What is it? Extra money paid or earned.
Types: Simple, Compound
When? Borrowing or saving
Who? Borrower pays, lender earns
Why? Reward saving, cover risk
How? P × R × T
Quiz
1. Interest is?
2. Borrower?
3. Faster growth?
4. Interest rewards?
5. Interest depends on?
3️⃣ INVESTMENT
Definition? Investment means putting money into an asset or scheme with the expectation of earning future income or profit. The main purpose of investment is wealth creation over time. Common investment options include fixed deposits, mutual funds, shares, bonds, gold, and real estate. Investments usually grow due to interest, dividends, capital appreciation, and compounding, and they involve different levels of risk and return.
What is it? Investment means putting money today to get more money in the future.
Types: Fixed Deposits, Mutual Funds, Shares, Gold, Real Estate
When? As early as possible, especially for long-term goals
Who? Individuals, companies, governments
Why? Beat inflation, build wealth, achieve life goals
How? Through interest, profits, dividends, and compounding
Quiz
1. Investment means?
2. Which is an investment?
3. Best time to invest?
4. Why do people invest?
5. Investment grows mainly due to?
4️⃣ LOAN
Definition? A loan is an amount of money borrowed from a bank, financial institution, or individual with a promise to repay it over time along with interest. Loans are taken when a person or business does not have enough funds to meet a need such as education, housing, business, or emergencies. Loans are generally repaid in regular installments called EMIs (Equated Monthly Installments) and are governed by agreed terms and conditions.
What is it? A loan is money borrowed that must be repaid with interest.
Types: Education Loan, Home Loan, Personal Loan, Business Loan
When? When people do not have enough money
Who? Banks, NBFCs, government institutions give loans
Why? To study, buy a house, start business, emergencies
How? Repaid in monthly installments called EMI
Quiz
1. A loan is?
2. Which is a type of loan?
3. Who gives loans?
4. Why do people take loans?
5. Loan is repaid through?
5️⃣ INSURANCE
Definition? Insurance is a financial arrangement that provides protection against financial loss due to unexpected events such as accidents, illness, death, theft, or natural disasters. Under insurance, the insured person pays a regular amount called a premium to an insurance company. In return, the company promises to compensate for losses as per the policy terms. Insurance helps reduce financial risk and provides financial security and peace of mind.
What is it? Insurance is financial protection against loss.
Types: Life Insurance, Health Insurance, Vehicle Insurance, Property Insurance
When? During accidents, illness, death, or damage
Who? Insurance companies provide insurance
Why? Protects family and reduces financial burden
How? You pay premium, company pays during loss
Quiz
1. Insurance provides?
2. Which is a type of insurance?
3. When is insurance used?
4. Who provides insurance?
5. What do we pay regularly?
6️⃣ SHARE MARKET
Definition? The share market is an organized place where people buy and sell shares (ownership units) of companies. When a company needs money to grow its business, it divides its ownership into small parts called shares and sells them to the public. People who buy these shares become part-owners (shareholders) of the company.
What is it? The share market is a place where company shares are bought and sold.
Types: Primary Market (IPO), Secondary Market (Buy/Sell shares)
When? On working days during market hours
Who? Investors, traders, and companies
Why? Companies raise money for growth
How? People earn through price rise and dividends
Quiz
1. Share market is used to?
2. IPO belongs to?
3. Who participates in share market?
4. Why do companies issue shares?
5. How do investors earn?
7️⃣ CRYPTOCURRENCY
Definition? Cryptocurrency is a type of digital or virtual currency that uses cryptography for security and operates on a decentralized system called blockchain technology. Unlike traditional money, cryptocurrencies are not issued or controlled by any central authority like a government or bank. Transactions are recorded on a public digital ledger, making them transparent and difficult to alter. Examples include Bitcoin, Ethereum, and Ripple. Cryptocurrencies are used for investment, online transactions, and digital asset storage, but they are highly volatile in value.
What is it? Cryptocurrency is digital money using computer codes.
Types: Bitcoin, Ethereum, Other altcoins
When? For investment or digital transactions
Who? Tech users and investors
Why? To avoid central control and enable fast transfers
How? Using blockchain technology
Quiz
1. Cryptocurrency is?
2. Which is a cryptocurrency?
3. Who uses cryptocurrency?
4. Why was cryptocurrency created?
5. How does cryptocurrency work?
8️⃣ COMPOUND EFFECT
Definition? The compound effect refers to the process where interest is earned not only on the original principal but also on the previously earned interest. Over time, this leads to exponential growth of money. The compound effect is most powerful when investments are made early and for a long duration. It plays a major role in wealth creation through long-term savings and investments such as fixed deposits, mutual funds, and retirement plans.
What is it? Interest earned on interest plus the original money.
Types: Annual compounding, Monthly compounding
When? Useful for long-term saving and investment
Who? People who start early benefit most
Why? Small amounts grow big over time
How? Money multiplies year after year
Quiz
1. Compound effect means?
2. Which is a type of compounding?
3. When is it most useful?
4. Who benefits most?
5. Why is it powerful?
9️⃣ CHIT FUND
Definition? A chit fund is a traditional group-based saving and borrowing system where a fixed number of members contribute a fixed amount of money regularly for a specific period. Each month, one member receives the collected amount either through auction or lottery. Chit funds are commonly used for short-term savings and access to lump-sum money. While registered chit funds are regulated by law, unregistered chit funds can be risky.
What is it? A chit fund is a group saving system.
Types: Registered chits, Private chits
When? Used when people need savings plus borrowing together
Who? Run by chit companies or individuals
Why? Easy access to lump sum money
How? Members contribute monthly, one member gets money each month
Quiz
1. Chit fund is?
2. Which is a type of chit fund?
3. Who runs chit funds?
4. Why join a chit fund?
5. How does a chit fund work?
🔟 INFLATION
Definition? Inflation is the gradual increase in the general price level of goods and services over time, which reduces the purchasing power of money. This means that the same amount of money buys fewer goods than before. Inflation usually occurs due to increased demand, higher production costs, or excess money supply in the economy. Moderate inflation is considered normal for economic growth, but high inflation can harm savings and living standards.
What is it? Inflation means rise in prices over time.
Types: Mild inflation, High inflation
When? When demand is more than supply
Who? Everyone is affected
Why? Money loses value if inflation is high
How? Measured using Consumer Price Index (CPI)
India Inflation (CPI) – Last ~20 Years
| Year | Inflation Rate (CPI, %) |
|---|---|
| 2005 | 4.25% |
| 2006 | 6.1–6.7% |
| 2007 | 6.4% |
| 2008 | 8.3% |
| 2009 | 10.9% |
| 2010 | 11.99% |
| 2011 | 8.9% |
| 2012 | 9.5–10.0% |
| 2013 | 10.0–10.9% |
| 2014 | 5.8–6.4% |
| 2015 | 4.91% |
| 2016 | 3.4–4.5% |
| 2017 | 3.3–3.6% |
| 2018 | 3.4–4.9% |
| 2019 | 3.7–4.0% |
| 2020 | 6.2% |
| 2021 | 5.1% |
| 2022 | 6.7% |
| 2023 | 5.6% |
| 2024 | 5.1% |
Quiz
1. Inflation is?
2. Inflation reduces?
3. How is inflation measured?
4. Who is affected by inflation?
5. Moderate inflation is?
1️⃣1️⃣ DEFLATION
Definition? Deflation is the decline in the general price level of goods and services over time. It increases the purchasing power of money, but it is often a sign of economic slowdown. Deflation occurs when demand falls, production decreases, and unemployment rises. Prolonged deflation can negatively affect businesses and wages, making it harmful to the economy.
What is it? Deflation means fall in prices.
Types: Temporary deflation, Long-term deflation
When? During economic slowdown
Who? Businesses and workers are affected
Why? People stop spending, economy slows down
How? Observed through price indices and economic data
In India: Very rare, only short periods in last 20 years
Quiz
1. Deflation is?
2. Temporary deflation means?
3. When does deflation happen?
4. Who is affected by deflation?
5. How often did India face deflation in last 20 years?
1️⃣2️⃣ TAX
Definition? Tax is a compulsory payment made by individuals and businesses to the government to fund public services and national development. Taxes are used for building infrastructure, providing education, healthcare, defense, and welfare schemes. Taxes are broadly classified into direct taxes (like income tax) and indirect taxes (like GST). Paying taxes is a legal duty of citizens and helps in the overall growth of the economy.
What is it? Tax is money paid to the government.
Types: Direct tax, Indirect tax (GST)
When? When earning or buying goods
Who? Collected by the government
Why? For country development and public services
How? Through income tax, GST, and other taxes
Quiz
1. Tax is?
2. Which is a direct tax?
3. Who collects taxes?
4. Why do we pay taxes?
5. How are taxes collected?
1️⃣3️⃣ GDP
Definition? Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country during a specific time period, usually one year. GDP is a key indicator of a country’s economic performance and growth. A rising GDP indicates economic progress, while a falling GDP may signal economic slowdown. GDP includes production from agriculture, manufacturing, and services sectors.
What is it? GDP is the total value of goods and services produced in a country.
Types: Nominal GDP, Real GDP
When? Calculated every year
Who? Calculated by government agencies
Why? Shows country’s economic strength
How? Increased by production, services, and exports
Quiz
1. GDP stands for?
2. Which is a type of GDP?
3. Who calculates GDP?
4. Why is GDP important?
5. How can GDP increase?
1️⃣4️⃣ FINANCIAL PLANNING
Definition? Financial planning is the process of managing income, expenses, savings, investments, and risks in a systematic way to achieve short-term and long-term financial goals. It helps individuals use their money wisely, prepare for emergencies, and secure their future. Financial planning includes budgeting, saving, investing, insurance, tax planning, and retirement planning.
What is it? Financial planning means deciding in advance how to earn, spend, save, and invest money.
Types: Short-term planning, Long-term planning
When? From an early age and throughout life
Who? Individuals, families, and businesses
Why? To achieve goals, avoid financial stress, and ensure a secure future
How? By budgeting, saving regularly, investing wisely, and managing risks
Quiz
1. Financial planning is about?
2. Which is a part of financial planning?
3. Who needs financial planning?
4. Why is financial planning important?
5. Financial planning should start?
1️⃣5️⃣ REVENUE
Definition? Revenue is the income earned by a business, government, or organization through its regular activities such as selling goods, providing services, or other income-generating operations. It is the primary source of funds used to meet expenses, invest in growth, and earn profits.
What is it? Revenue is the money received from customers or other sources in exchange for goods or services.
Types: Operating revenue, Non-operating revenue, Tax revenue, Non-tax revenue
When? Whenever goods are sold or services are provided
Who? Businesses, governments, and organizations
Why? To run operations, pay expenses, and earn profits
How? By selling products, providing services, charging taxes, fees, interest, and rent
Quiz
1. Revenue means?
2. Which is an example of operating revenue?
3. Tax collected by the government is called?
4. Interest received by a business is an example of?
5. Why is revenue important?
1️⃣6️⃣ MUTUAL FUND
Definition? A Mutual Fund is an investment vehicle that pools money from many investors and invests it in securities such as shares, bonds, money market instruments, or a mix of these. It is managed by professional fund managers with the aim of generating returns for investors.
What is it? A mutual fund is a collective investment where money is invested in different assets.
Types: Equity funds, Debt funds, Hybrid funds, Index funds
When? When investors want long-term or short-term investment returns
Who? Individual investors, institutions, and fund houses
Why? For diversification, professional management, and better returns
How? By investing through SIP (Systematic Investment Plan) or lump sum
Quiz
1. Mutual fund is?
2. Who manages a mutual fund?
3. SIP stands for?
4. Which fund mainly invests in shares?
5. Main benefit of mutual fund is?
1️⃣7️⃣ TRADING
Definition? Trading is the activity of buying and selling financial instruments such as shares, commodities, currencies, or derivatives with the objective of making profit from price movements in a short or medium period.
What is it? Trading means buying and selling assets to earn profit.
Types: Intraday trading, Swing trading, Positional trading, Commodity trading
When? During market hours or specific trading sessions
Who? Traders, investors, institutions, and brokers
Why? To earn profit from price fluctuations
How? By analyzing market trends using charts, news, and data
Quiz
1. Trading mainly involves?
2. Intraday trading means?
3. Which of the following is a type of trading?
4. Who participates in trading?
5. Trading decisions are mainly based on?
1️⃣8️⃣ OPTIONS
Definition? Options are derivative financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price (strike price) on or before a specified date.
What is it? An option is a contract that allows buying or selling an asset at a fixed price in the future.
Types: Call option, Put option
When? Used when traders expect price movement in the future
Who? Traders, investors, and institutions
Why? For hedging risk and earning profit
How? By buying or selling call and put option contracts
Quiz
1. Options are?
2. A call option gives the right to?
3. A put option gives the right to?
4. The fixed price in an option contract is called?
5. Options are mainly used for?
1️⃣9️⃣ BOND
Definition? A bond is a fixed-income financial instrument where an investor lends money to a government, company, or institution for a specified period in exchange for regular interest payments and repayment of the principal amount at maturity.
What is it? A bond is a loan given by an investor to an issuer.
Types: Government bonds, Corporate bonds, Municipal bonds
When? When governments or companies need long-term funds
Who? Governments, companies, and investors
Why? To raise capital and provide stable returns to investors
How? By issuing bonds with fixed interest (coupon) and maturity period
Quiz
1. A bond is?
2. Who issues government bonds?
3. Interest paid on a bond is called?
4. Which bond is considered safest?
5. Bond investors mainly receive?
2️⃣0️⃣ DIVIDEND
Definition? A dividend is the portion of a company’s profit that is distributed to its shareholders as a reward for investing in the company. Dividends may be paid in cash, additional shares, or other forms.
What is it? Dividend is the profit shared by a company with its shareholders.
Types: Cash dividend, Stock dividend, Interim dividend, Final dividend
When? When a company earns profit and decides to distribute it
Who? Companies pay dividends; shareholders receive them
Why? To reward shareholders and build investor confidence
How? By distributing profits after approval by the board/shareholders
Quiz
1. Dividend is?
2. Who receives dividends?
3. Which is a type of dividend?
4. Dividend is paid from?
5. Why do companies pay dividends?
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