You and your money
You and your money

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.


Annual Percentage Rate (APR)
APR or Annual Percentage Rate is a summary figure for comparing debt costs which brings together interest rates and other charges.
Everything that a person owns that has a monetary value (e.g. property, investments or cash).
The process by which interest repayments are added to the original amount borrowed to give a higher total figure which, in turn, attracts interest rate charges.
An arrangement to receive cash, goods or services now and to pay for them in the future.
A recurring pattern of a variable over time showing peaks and low points at regular intervals.
Equity in a property is the excess of the market value of the property over the outstanding mortgage debt secured against it.
Equity withdrawal
The process whereby mortgage levels are increased to release funds for additional spending.
The charge a borrower pays for the use of someone else’s money.
Interest rate
The exact price that a borrower pays for debt, normally expressed as an annual percentage.
An amount of money owed at a particular point in time.
A loan secured on property or land.
Net worth/net wealth
The value of all assets minus all liabilities.
A facility provided by banks and some building societies which allows customers to go into debt on their current account.
Principal sum (or capital sum)
The original amount of debt taken out.
Secured debt
Debt secured against an asset such as a home. If the debtor fails to make adequate repayments, the lender has a right to obtain money by selling the asset.
The period of time over which a debt is to be repaid.
Unsecured debt
Debt not backed by any asset.

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371