Everyday personal finance and investing vocabulary covering budgeting, credit, retirement accounts, and basic investment terms.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What does APR stand for?
- Annual Percentage Rate
- What is a credit score?
- A numerical rating that represents creditworthiness, typically ranging from 300 to 850
- What is a budget?
- A spending plan that allocates income to expenses and savings
- What is an emergency fund?
- Savings set aside to cover unexpected expenses or loss of income
- What is a deductible?
- The amount of money you must pay out of pocket before insurance begins to cover costs
- What is a 401(k)?
- An employer-sponsored retirement savings plan that allows employees to contribute pre-tax income
- What does IRA stand for?
- Individual Retirement Account
- What is a dividend?
- A payment made by a company to its shareholders, usually from profits
- What is a bond?
- A fixed-income security representing a loan you give to a government or company in exchange for interest payments
- What is a stock?
- A share of ownership in a company
- What is asset allocation?
- The process of dividing an investment portfolio among different asset types, such as stocks, bonds, and cash
- What is compound interest?
- Interest earned on both the original principal and previously earned interest
- What is inflation?
- A general increase in prices of goods and services over time, reducing purchasing power
- What is net worth?
- The total value of your assets minus your total liabilities
- What is liquidity?
- A measure of how quickly an asset can be converted to cash without losing value