1) In talking about loans, the balance is the difference between the amount owed and the amount paid. If you pay $45 on a $100 debt, your balance is $55. 2) In talking about checkbooks, balancing means to account for all money that came into and went out of your account, so that at the end of the month you and your bank statement agree. 3) In talking about savings, your balance is what is left in your savings account after you deposit or withdraw money.

A state of being in so much debt that you are legally declared unable to pay in full the people and companies you owe. When you legally declare yourself bankrupt in some states, you must sell off all your possessions and pay off your debts as best you can.

Using a bank’s or someone else’s money with their permission with an agreement to give it back to them, sometimes with extra money for letting you use theirs.

An operation that earns money by providing a service or selling a product.

A plan you create for controlling spending and encouraging saving.