Day One Recall
The economic value of a person’s skills, education, knowledge, and experience.
Human Capital
Earning interest on top of interest, creating a powerful wealth-building snowball effect for your savings over time.
Compound Interest
This process occurs when the prices of goods and services increase over time, eroding your cash's purchasing power
Inflation
Exposure to danger, harm, or loss when allocating your money or choosing market assets.
Risk
The amount of money that an individual or household has available for spending and saving after income taxes have been deducted.
Disposable Income
The economic value inherent in social networks, relationships, and shared values that facilitates cooperation and mutual benefit.
Social Capital
An investment product such as a stock or a bond.
Security
A financial institution and business that accepts deposits, makes loans, and handles other financial transactions.
Bank
A measure of the ability and ease with which you can access and use your money immediately.
Liquidity
The money left over at the end of the month after comparing the money going in with the money going out.
Cash Flow
An economic phenomenon where two parties each possess a good or service the other desires, which is required for a direct barter exchange.
Double Coincidence of Wants
A type of investment that gives people a share of ownership in a company.
Stock
A cooperative financial institution chartered by the NCUA or a state government that is owned by its individual members.
Credit Union
A cash reserve specifically set aside for unplanned expenses or financial emergencies, like car repairs or medical bills.
Emergency Fund
The price of using money, working as a reward fee when you save and an extra usage fee when you borrow.
Interest
This term describes a specific type of job that requires special education, training, or skill.
Profession
A company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.
Mutual Fund
A general term for any financial institution, like a bank or credit union, authorized to accept checking and saving deposits.
Depository Institution
Any direct payment of money that an individual must make from their own cash reserves to cover a cost, rather than having it paid by insurance.
Out-of-Pocket Expense
The specific profit that comes from selling an investment for more than you originally paid for it.
Capital Gain
The complete rewards package offered to an employee, including base salary, bonuses, benefits, and perks.
Total Compensation
To commit money to earn a financial return; the strategic purchase or sale of assets to produce income or capital gains.
Invest (or Investment)
A savings tool from a bank or credit union that has a fixed maturity date and a fixed interest rate.
Certificate of Deposit (CD)
An advantage; something that is good (such as health insurance or perks added to an employee's base salary).
Benefit
The precise profit or loss on an investment over a one-year period.
Annual Return (or Return)