12/01/2026
Understanding money 💰 🤑 💸 terms is the first step to building wealth 💪 ⭐️💰👇
20 Money Terms to Know
1. Asset
Anything you own that has value or can generate income (cash, land, stocks).
2. Liability
Anything you owe (loans, debts, unpaid bills).
3. Net Worth
What you own minus what you owe.
4. Income
Money you earn from work, business, or investments.
5. Expense
Money you spend on goods and services.
6. Budget
A plan showing how you manage your income and expenses.
7. Savings
Money set aside for future use or emergencies.
8. Investment
Money used to buy assets that can grow or earn income.
9. Interest
Extra money paid for borrowing or earned from saving.
10. APR (Annual Percentage Rate)
The yearly cost of borrowing money, including interest and fees.
11. Index Fund
A fund that tracks a market index like the S&P 500.
12. ETF (Exchange-Traded Fund)
A fund traded on the stock market like shares.
13. Dividend
Profit shared with shareholders by a company.
14. Liquidity
How easily an asset can be converted to cash.
15. Depreciation
The decrease in value of an asset over time.
16. Principal
The original amount of money invested or borrowed.
17. Inflation
A general increase in prices that reduces purchasing power.
18. Credit Score
A number showing how trustworthy you are as a borrower.
19. Debt-to-Income (DTI) Ratio
Your debt payments compared to your income.
20. Asset Allocation
How your investments are spread across different asset types.
Quick Tip
Understanding money terms is the first step to building wealth.
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