Money terms, defined.
Plain-English definitions of the words behind budgeting, spending, bills, saving, debt, banking, income, investing and net worth.
Budgeting
The words a monthly plan is made of: the methods, the lines, and what happens to the money you did not spend
Spending & cash flow
The words for money moving through a month: what came in, what went out, and what the difference means
- Baseline monthly spending
- Break-even point
- Cash flow
- Cash flow forecast
- Chargeback
- Cost per use
- Discretionary spending
- Duplicate charge
- Impulse buying
- Opportunity cost
- Peer-to-peer payment
- Pending transaction
- Refund
- Reimbursement
- Spending audit
- Spending leak
- Store credit
- Sunk cost
- Total cost of ownership
- Transfer
- Unit price
Bills & subscriptions
The words on a bill and a renewal notice: what recurs, when it is due, and what happens when it is late
Saving
The words for money set aside on purpose: the funds, the targets, and how each is sized
Debt & credit
The words on a loan or card statement, and the methods for paying a balance down
- 401(k) loan
- APR
- Amortization
- Balance transfer
- Buy now, pay later
- Cash advance
- Closing costs
- Credit limit
- Credit score
- Credit utilization
- Current balance
- Debt avalanche
- Debt consolidation
- Debt snowball
- Debt-to-income ratio
- Deferred interest
- Escrow
- Grace period
- HELOC
- Installment loan
- Interest rate
- Loan payoff amount
- Minimum payment
- Mortgage
- PMI
- Prepayment penalty
- Principal
- Refinancing
- Revolving credit
- Secured loan
- Statement balance
Banking & accounts
The words on a bank statement: the kinds of account, the balances, and how money moves between them
- ACH transfer
- Account aggregation
- Available balance
- Bank reconciliation
- Bank statement
- Checking account
- Credit union
- Custodial account
- Deposit hold
- Direct deposit
- Exchange rate
- FDIC insurance
- Foreign transaction fee
- Gift card
- Joint account
- Outstanding check
- Overdraft
- Posted balance
- Power of attorney
- Provisional credit
- Savings account
Income & taxes
The words on a paycheck and a tax form: what you earn, what is withheld, and what actually arrives
Investing
The words on a retirement or brokerage statement: the account types, the returns, and the rules of thumb
Net worth
The words for what you own, what you owe, and the one number that tracks the difference