11 Business Terms Every Teen Should Know Before College

By VIBS | vibslearn.org

Whether you're starting a side hustle, joining a business club, or just curious about how the real world works — understanding the basics of business can set you apart before college even begins.

At VIBS, our mission is to teach students real-life skills that schools often overlook. From financial literacy to entrepreneurship, we empower the next generation of thinkers and doers. That starts with speaking the language of business — so here are 11 terms every teen should know:

1. Revenue

Revenue is all the money that a business makes over a certain period of time. Revenue can be obtained through selling your product/service, renting out land, etc. Revenue is the amount of money made before filtering in the costs that were needed to obtain it (expenses). 

2. Expenses

Expenses are the money that a business needs to use in order to generate their revenue. This can be marketing fees, production fees, shipping costs, wages, etc. 

3. Profit

While it is great to generate a high amount of revenue, it is ultimately the amount of profit a business generates that matters. If you have high revenue, but high expenses as well, then you get very little profit and make very little money. Profit is the money you make after you deduct expenses from revenue.

4. Budget

Budgets help you organize your revenue and profits. A budget helps you map out where you want your money to go in order to maximize its value.

5. Investment

An investment is where you put money into something with the expectation that it will grow over time. This can be through stocks, where you put money into businesses, real estate, where you put money into housing, art, where you put money into paintings/artworks, and so much more. However, it’s not all sunshine and rainbows. Investments come with risks, you have to do proper research into the company and market in order to ensure you don’t lose your money.

6. Marketing

It’s one thing to have a good idea, but if you can’t get other people to know about it, then the idea is just noise. Marketing helps you reach your target market and customers. You see marketing campaigns in your everyday lives and may not even notice it. An ad on a bus stop, a billboard, a sponsored message as you doom scroll on Instagram or Tiktok. These are all marketing methods that companies will use in order to reach their audience.

7. Target Market

Your target market is the specific group of people most likely to want what you're offering. You can’t please everyone, and you don’t need to. Knowing who your audience is helps you focus your energy where it actually matters.

8. Entrepreneur

An entrepreneur is someone who has an idea and actually does something about it. They take initiative, solve problems, and take smart risks to bring their ideas to life. They’re the people who bring an idea from start to finish and execute their goals.

9. Startup

A startup is a brand-new business, usually launched by an entrepreneur with a big idea and bold goals. It often starts with nothing more than a notebook and a dream. If you’ve ever imagined launching your own business, that first spark of inspiration? That’s your startup moment.

10. Equity

Equity is ownership. When you are working for a business and you have equity in it, you own a piece of it. This is especially important if you are a business owner, entrepreneur, or you have investors/partners.

11. ROI (Return on Investment)

ROI stands for Return on Investment. It measures how much money you make compared to how much you spent. For example, if you spend $10 on materials and earn $30, your ROI is 200%. It’s a great way to figure out what’s worth your time and money.

Final Thoughts:

If you're a parent looking to help your child build financial literacy early, shoot us an email. We would love to get them started. Visit our Courses page to explore the topics we cover, from real-world money skills to subjects schools often leave out.

If you're a teacher interested in bringing financial literacy into your classroom, check out our Workshops page. We’ll send you our workshop package and help you bring these essential skills to your students.

About Us:

At VIBS, we believe students shouldn’t have to wait until highschool to learn real-life skills. Our free workshops and tutoring sessions are built to give you the tools and confidence to speak the language of business — now, not later. This blog was written by Kubo Pokorny and Kenny Lu