Income

Money you earn from work, business, or other sources.

Expenses

Money you spend. Can be fixed (rent) or variable (food).

Budget

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

Savings

Money you keep for future goals or emergencies.

Emergency Fund

Usually 3–6 months of expenses saved for unexpected events.

Credit Score

A number showing how trustworthy you are with borrowing.

Interest

The cost of borrowing money, or the reward for saving it.

Loans

Borrowed money that must be repaid with interest.

Debt

Money you owe to others.

Assets

Things you own that have value.

Liabilities

Things you owe (debts, bills, loans).

Net Worth

Assets minus liabilities.

Cash Flow

Income minus expenses.

Needs

Essential expenses like rent, food, utilities.

Wants

Non-essential purchases like eating out.

Fixed Expenses

Costs that stay the same monthly.

Variable Expenses

Costs that change each month.

Sinking Funds

Small savings buckets for future costs.

Zero Based Budgeting

Every dollar has a job.

Pay Yourself First

Put money into savings before anything else.

Investing

Using money to buy assets that grow over time.

Stocks

Ownership in a company.

Bonds

Loans to a company or government.

E T Fs

Funds that hold many investments and trade like stocks.

Index Fund

A fund that tracks a market index.

Diversification

Spreading money across many assets.

Compound Interest

Interest earned on interest.

Risk Tolerance

Your comfort with investment ups and downs.

Capital Gains

Profit from selling an investment.

Retirement Account

Long-term tax-advantaged account.

Roth I R A

Retirement account with tax-free growth.

Brokerage Account

Account to buy stocks, ETFs, and funds.