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401k Plan – A retirement savings plan offered by employers, allowing employees to save part of their paycheck before taxes are deducted. Employers often match a portion of the contributions, and taxes are deferred until withdrawal.
A
Annual Percentage Rate (APR) – The total yearly cost of borrowing money, expressed as a percentage, including interest and fees. It helps compare the cost of loans or credit cards.
Arbitrage – Buying and selling the same asset in different markets to profit from price differences.
Asset – Anything of value that a person or company owns, like cash, property, or stocks, which can be used or sold to meet financial needs.
B
Bankruptcy – A legal process where someone who cannot pay their debts gets relief from some or all of their financial obligations, often by restructuring or liquidating assets.
Bear Market – When stock prices are falling.
Blockchain – A digital ledger of transactions maintained across multiple computers.
Blue Chip Stock – Shares of large, reputable, and financially sound companies.
Bond – A loan you give to a company or government and earn interest from.
Bubble – When some type of hype drives the price of a good far above the item's real value
Budget – A plan for how to spend and save money.
Bull Market – When stock prices are rising.
C
Capital – Money used to start or grow investments.
Certificate of Deposit (CD) – A special bank account that earns more interest.
Checking Account – A bank account for spending money.
Compound Interest – Earning interest on both your money and the interest it has already earned.
Credit Card – A card that borrows money to pay later.
Cryptocurrency – A digital currency secured by cryptography, operating on decentralized blockchain technology without a central authority.
Currency – The money used in a specific country.
D
Deflation – When prices of things go down over time.
Debit Card – A card that uses money directly from your bank account.
Demand – How much people want something.
Deposit – Putting money into a bank account.
Diversification – Spreading investments across different types of assets to reduce risk.
Dividend – Money a company pays its shareholders from its profits.
E
Emergency Fund – Savings for unexpected expenses.
ETF (Exchange-Traded Fund) – A fund that tracks a stock index and trades like a stock.
Expense – Money you spend.
F
FDIC – A government group that protects your money in banks.
Federal Interest Rates – Set by the Federal Reserve, they control the cost of borrowing money. They impact loan, mortgage, and credit card rates, influencing the economy by encouraging or discouraging spending and saving.
G
Goal – A plan for what you want to save money for.
Gross Income – The total money you earn before expenses.
H
Hedge Fund – A private investment fund that uses advanced strategies to maximize returns.
I
Inflation – When prices of things go up over time.
Index Fund – A type of mutual fund that matches the market’s performance.
Interest – Money earned from lending money or investing in bonds.
Interest Earnings – Extra money the bank pays you for saving with them.
Interest Rate – The percentage of extra money paid or earned on a loan or savings.
IPO (Initial Public Offering) – When a company sells shares to the public for the first time.
L
Liquidity – How easily an asset can be bought or sold in the market without affecting its price.
Loan – Money borrowed from a bank that must be paid back.
Long-Term Savings – Money saved for big goals, like college.
Loss – When costs are more than the money earned.
M
Market – A place where people buy and sell investments.
Market Capitalization (Market Cap) – Total value of a company’s shares. Price of stock times amount in market.
Mortgage – A special loan for buying a house.
Mutual Fund – A group of investments managed by experts.
N
Net Income – The money you keep after expenses.
O
Online Banking – Managing money through a bank’s website or app.
Opportunity Cost – The thing you give up when choosing something else.
P
Portfolio – All the different investments someone owns.
Principal – The original amount of money invested or loaned.
Profit – The extra money left after all costs are paid.
R
Rainy Day Fund – Savings for small, unexpected costs.
Risk – The chance you might lose money on an investment.
S
Savings – Money set aside for future use.
Savings Account – A bank account for saving money.
Savings Goal – A target amount of money to save.
Savings Plan – A strategy for how to save money.
Short Selling – Borrowing and selling a stock, hoping its price will drop so you can buy it back cheaper.
Short-Term Savings – Money saved for something soon, like a toy.
Spending Limit – Deciding how much money you can spend to save the rest.
Stock – A small piece of ownership in a company.
Supply – How much of something is available.
T
Ticker Symbol – The unique letters used to identify a stock on the market.
Tariff - A tax placed by one country on imports from another country.
V
Volatility – How much the price of a stock fluctuates over a period of time.
W
Wealth – The total value of all the money and things you own.
Y
Yield – The earnings generated on an investment over a specific period, expressed as a percentage of the investment’s cost or current value.