Financial Terms 101

Things you own that have financial value, such as cash, a home, or investments.

A plan for how you will earn, spend, save, and manage your money.

A number that represents how likely you are to repay borrowed money on time.

Money you owe to another person, business, or financial institution.

Money set aside to cover unexpected expenses or financial emergencies.

Money you spend on things such as housing, food, transportation, bills, and entertainment.

Money you receive from work, self-employment, investments, benefits, or other sources.

The cost of borrowing money or the money you earn from saving or investing.

The value of what you own minus what you owe.

Money you set aside rather than spend, typically for future needs or goals.