Personal Finance & Money Management Financial Terms & Definitions

26 terms in this topic

This category encompasses the core principles of managing one’s personal finances, including budgeting, saving, debt management, investing, and retirement planning. It provides definitions for key terms like compound interest, credit score, and asset allocation to help individuals make informed financial decisions.

N

Needs vs. wants

Needs vs. wants is a fundamental concept in personal finance and budgeting that helps individuals distinguish between essential expenses required…

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Net worth

Net worth is a snapshot of your financial health at a single moment. It is calculated by subtracting everything you…

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Pay stub

A pay stub, also known as a paycheck stub, earnings statement, or pay advice, is a document provided by an…

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Pay-yourself-first

Pay-yourself-first is a foundational principle in financial literacy and personal money management that flips traditional budgeting on its head. Instead…

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S

Sinking fund

A sinking fund is a strategic financial tool used by individuals, corporations, and governments to set aside money over time…

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Fixed expenses Fixed expenses are costs that remain the same amount each month and are essential for your basic living… Gross income Gross income is the total amount of money you earn from all sources before any deductions or taxes… Household cash flow Household cash flow is the total amount of money moving into and out of a household over a… Inflation-adjusted income Inflation-adjusted income, also called real income, is a measure of how much your purchasing power has changed after… Needs vs. wants Needs vs. wants is a fundamental concept in personal finance and budgeting that helps individuals distinguish between essential… Net (take-home) income Net income, often called take-home pay, is the amount of money you actually receive after all deductions are… Net worth Net worth is a snapshot of your financial health at a single moment. It is calculated by subtracting… Non-discretionary spending Non-discretionary spending, also called essential or mandatory spending, refers to expenses that are necessary for basic living and… Pay stub A pay stub, also known as a paycheck stub, earnings statement, or pay advice, is a document provided… Pay-yourself-first Pay-yourself-first is a foundational principle in financial literacy and personal money management that flips traditional budgeting on its… Sinking fund A sinking fund is a strategic financial tool used by individuals, corporations, and governments to set aside money… Variable expenses Variable expenses are costs that change from month to month based on your consumption, choices, or needs. Unlike…