Money Matters: Essential Vocabulary for Business in the USA

Welcome to Business Fluency - a newsletter designed to enhance your understanding of essential business terms and concepts and provide you with practical strategies to boost your business and career prospects.

In today’s newsletter:

• Money Matters: Essential Vocabulary for Business in the USA

• Quote of the day: Evan Esar

• What I’m Watching: Ariannita la Gringa

• Words of the day: Cheque & Check

• Business English: Test Your Knowledge

• Whenever you are ready, here is how I can help you

Money Matters: Essential Vocabulary for Business in the USA

Navigate American Currency Like a Local: A Business Traveller's Guide

Introduction

Last week we explored British currency and money vocabulary, but this week we shift our focus across the Atlantic to the United States.

Understanding the key differences in financial terminology and practices will help you navigate professional settings confidently. American English diverges from British English in several important ways when discussing money, and these distinctions can impact everything from casual conversation to formal business negotiations. These contrasts are particularly important for international business travellers who want to blend in seamlessly with their American counterparts.

Mastering these American financial nuances will complement the UK knowledge we shared last week.

Dollar Basics

The official currency of the United States is the US dollar ($).

The dollar is divided into 100 cents (¢), with coins available in 1¢ (penny), 5¢ (nickel), 10¢ (dime), 25¢ (quarter), 50¢ (half-dollar, though rarely used), and $1 (dollar coin, very uncommon) denominations, while notes come in $1, $5, $10, $20, $50, and $100 values. Unlike British banknotes which vary in colour and size, US currency notes are all the same size and predominantly green, making them harder to distinguish at a glance for international visitors. In business contexts, Americans typically refer to their currency simply as "dollars" or "bucks" rather than "US dollars."

This uniformity in US currency appearance differs significantly from the UK's visually distinct notes.

Common Slang Terms

While the UK has "quid," Americans use "bucks" as their universal slang term for dollars in everyday conversation.

Where Brits might ask for a "fiver" or a "tenner," Americans typically refer to their bills by saying "a five" or "a ten" with no special nicknames for standard denominations. You'll never hear Americans say "cents" in casual speech; instead, they use specific coin names—"a quarter" instead of "twenty-five cents" or "give me fifty cents in nickels." The American "penny" contrasts with the British "pence" or "p"—you'd hear "seventy-five cents" in the US versus "seventy-five p" in the UK.

These terminological differences highlight the importance of adapting your financial vocabulary when crossing the Atlantic.

Sales Tax Complexities

While almost all prices in UK shops include VAT (value-added tax), American prices typically do not include sales tax on the displayed price.

This key difference means that the price you see on a product in the US is almost always less than what you'll actually pay at checkout, as sales tax (ranging from 0% to over 10% depending on the state and city) is added at the point of purchase. There are notable exceptions—gasoline prices include tax, and some states don't charge sales tax on certain necessities like groceries or clothing under a certain value. This system creates a mental calculation challenge for international visitors accustomed to all-inclusive pricing models like those in the UK and Europe.

Always be prepared for your final bill to be higher than the advertised prices when shopping or dining in America.

Payment Methods

While both the UK and US embrace digital payments, Americans still use physical checks far more frequently than their British counterparts.

Americans write "check" rather than the British "cheque” (the pronunciation is the same), and many still use them for rent payments, contractor services, and even some retail transactions, whereas they've largely disappeared from everyday UK commerce. While the UK widely adopted "contactless" payments years ago, the US caught up more recently, with Americans more likely to say "tap to pay" or simply "tap" rather than "contactless." Person-to-person digital payment apps like Venmo and Zelle dominate in the US, whereas services like PayPal or bank transfers are more common in the UK.

These payment method differences reflect deeper cultural and banking system divergences between the two nations.

Tipping Culture

The most dramatic difference between UK and US money customs is America's widespread and almost obligatory tipping culture.

While the UK has a modest tipping tradition with service charges often included, tipping in the US is effectively mandatory in many situations, with servers typically receiving a base wage well below the minimum wage under the assumption that tips will make up the difference. When dining out, Americans routinely add 15-20% to their bill (calculating from the pre-tax amount is acceptable), whereas the automatic service charge common in UK restaurants is rare in the US. The tipping expectation extends far beyond restaurants to include bartenders ($1-2 per drink), hotel housekeeping ($2-5 per day), taxi drivers (15-20%), tour guides (15-20%), and even coffee shop baristas—vastly more situations than a UK business traveller might expect.

Failing to understand these tipping expectations can create awkward situations and is considered a serious cultural faux pas in American business contexts.

Conclusion

Understanding the contrasts between UK and US money vocabulary and practices is essential for the international business traveller moving between these markets.

The differences—from terminology and currency appearance to sales tax calculations and tipping expectations—reflect broader cultural distinctions that impact daily financial interactions. These nuances extend beyond mere vocabulary into areas of social etiquette and business protocol that can significantly affect how you're perceived by American colleagues and partners. Remember that demonstrating fluency in these cultural differences signals respect and professionalism in international business relationships.

By building on last week's UK knowledge with these American insights, you'll navigate both financial landscapes with confidence and cultural sensitivity.

Quote of the Day: Evan Esar

While last week we highlighted the British proverb "Take care of the pence and the pounds will take care of themselves," this American variation from humourist Evan Esar reflects a similar focus on saving, with a practical twist. Esar's addition of "but seldom vice versa" cleverly points out how people often spend what they earn instead of saving it!

It is an extension of the proverb:

What I’m Watching: Ariannita la Gringa

I have just found this YouTube English teacher explaining money in America.

Words of the day: Cheque & Check

Cheque - noun - countable - a written order to a bank to pay a specified amount of money from one's account, commonly used in British English

Check - noun - countable - the American English spelling and pronunciation of "cheque"; a written order instructing a bank to pay money from one's account to another person or organization

Key Differences:

• Cheque is the British English spelling used throughout the UK and many Commonwealth countries

• Check is the American English spelling used in the United States

• Both refer to the same financial instrument but signal regional language differences in business communication

Business Example: When conducting international business, it's important to note that while a British client might say, "I'll post the cheque tomorrow," an American partner would say, "I'll send you a check in the mail," referring to exactly the same payment method. However, the use of cheques has reduced considerably in the UK.

Language Note: In American English, "check" has multiple meanings including: the bill at a restaurant ("Can I get the check, please?"), a verification process ("Let me check on that for you"), and a pattern of squares ("The tablecloth has a check pattern"). In British English, "cheque" only refers to the banking document, making context crucial for international business communication.

Newsletter Connection: As mentioned in our newsletter comparing US and UK money vocabulary, Americans will ask for "the check" in restaurants (not "the bill" as in the UK), and still use physical checks for certain business transactions, while in the UK, "cheques" have largely disappeared from everyday commerce.

Business English: Test Your Knowledge

Whenever you are ready, here is how I can help you:

We provide Business English lessons and Cambridge and IELTS preparation courses. You can book an online lesson over Zoom here:

You can book a free 20-minute consultation with Iain over Zoom here:

Why not subscribe to our sister Financial Fluency newsletter for English students interested in learning about the financial markets and investing?

Disclaimer:

This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.

Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.