What comes to mind when you hear of Finance and Financial Terms?

What comes to mind when you hear of Finance and Financial Terms?

Meaning Of Finance 

Meaning Of Finance 

Strong financial knowledge and decision-making skills help people weigh options and make informed choices for their financial situations, such as deciding how and when to save and spend, comparing costs before a big purchase, or paying their bills and planning for retirement or other long-term savings or investment.

Strong financial knowledge and decision-making skills help people weigh options and make informed choices for their financial situations, such as deciding how and when to save and spend, comparing costs before a big purchase, or paying their bills and planning for retirement or other long-term savings or investment.

In this blog, we’re going to talk about something that may seem a little intimidating at first: financial terms. But don’t worry, by the end of this blog post, you’ll be an expert in the language of money!

In this blog, we’re going to talk about something that may seem a little intimidating at first: financial terms. But don’t worry, by the end of this blog post, you’ll be an expert in the language of money!

You may have asked yourself- “why bother learning all of these terms?” Well, having a strong understanding of financial language is crucial to managing your money effectively, whether you’re planning for retirement or just trying to save up for a vacation. It will also help you navigate the world of finance and make informed decisions about your investments and other financial choices.

You may have asked yourself- “why bother learning all of these terms?” Well, having a strong understanding of financial language is crucial to managing your money effectively, whether you’re planning for retirement or just trying to save up for a vacation. It will also help you navigate the world of finance and make informed decisions about your investments and other financial choices.

40 financial terms you should know in 2024:

40 financial terms you should know in 2024:

  • Asset – A resource with economic value that an individual, corporation, or country owns or controls with the expectation of its providing future benefit.

    • Asset –
    Asset
    A resource with economic value that an individual, corporation, or country owns or controls with the expectation of its providing future benefit.

  • Debt consolidation – Combining multiple debts into a single, new loan with a lower interest rate.

    • Debt consolidation – Combining multiple debts into a single, new loan with a lower interest rate.
    Debt consolidation

  • Dividend – A payment made by a company to its shareholders, usually a portion of the company’s profits.

    • Dividend – A payment made by a company to its shareholders, usually a portion of the company’s profits.
    Dividend

  • Equity – Ownership in a company, represented by shares of stock.

    • Equity – Ownership in a company, represented by shares of stock.
    Equity

  • Inflation – The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

    • Inflation – The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
    Inflation
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  • Liquidity – The degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.

    • Liquidity

  • Mutual fund – An investment vehicle that pools money from multiple investors to purchase a diverse portfolio of stocks, bonds, or other securities.

    • Mutual fund – An investment vehicle that pools money from multiple investors to purchase a diverse portfolio of stocks, bonds, or other securities.
    Mutual fund

  • Net worth – The value of an individual’s assets minus liabilities.

    • Net worth – The value of an individual’s assets minus liabilities.
    Net worth

  • Stock – An investment representing ownership in a corporation.

    • Stock – An investment representing ownership in a corporation.
    Stock

  • Budget – A financial plan developed by an individual that determines how much money they plan to spend over a particular period.

    • Budget

  • Investment – An investment is an allocation of money with the expectation of a profit or material benefit in return.

    • Investment – An investment is an allocation of money with the expectation of a profit or material benefit in return.
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    Investment

  • Taxes– Taxes are fees paid by individuals or entities to governments that fund government spending and public programs.

    • Taxes

  • Mortgage– A mortgage is a loan used to buy property.

    • Mortgage

  • Bonds-Bonds are investments in debt, representing a type of fixed-income securities. To read more on bonds Finance for non.

    • Bonds

  • Balance Sheet – This is one of the three core financial documents created by businesses.

    • Balance Sheet

  • Audit – A check by an auditor or tax official on your financial records to check that you account for everything correctly.

    • Audit

  • Bankruptcy– A process where an individual is legally bankrupt and an appointed trustee manages their assets and financial affairs.

    • Bankruptcy

  • Capital – Wealth in the form of money or property owned by a business.

    • Capital

  • Capital growth – An increase in the value of an asset.

    • Capital growth

  • Cash – Includes all money available on demand, including bank notes and coins, petty cash, certain cheques, and money in savings or debit accounts.

    • Cash
    Discount

  • Excise duty – An indirect tax levied on certain types of goods produced or manufactured abroad including petrol, alcohol, tobacco and coal.

    • Excise duty

  • Financial year – A 12-month period, typically from 1 July to 30 June.

    • Financial year

  • Financial statement – A summary of a business’s financial position for a given period. Financial statements can include a profit and loss, balance sheet and cash flow statement.

    • Financial statement

  • Fixed asset – A physical asset used in the running of a business

    • Fixed asset

  • Interest – The cost of borrowing money on a loan or earned on an interest-bearing account.

    • Interest

  • Interest rate – A percentage used to calculate the cost of borrowing money or the amount you will earn. Rates vary from product to product and generally the higher the risk of the loan, the higher the interest rate. Rates may be fixed or variable.

    • Interest rate

  • Inventory – A list of goods or materials a business is holding for sale.

    • Inventory

  • Net profit (also known as your bottom line) – the total gross profit minus all business expenses

    • Net profit

  • Petty cash – cash for small miscellaneous purchases such as postage.

    • Petty cash –

  • Profit – the total revenue a business earns minus the total expenses

    • Profit

  • Return on investment (ROI) – a calculation that works out how efficient a business is at generating profit from the original equity from the owners/shareholders.

    • Return on investment (ROI)

  • Revenue (also known as turnover) – the amount earned before expenses, tax and other deductions.

    • Revenue

  • Scam – a deliberate and targeted deception to obtain money or information unlawfully.

    • Scam

  • Security (also known as collateral) – property or assets that a lender can take ownership of when repayment of a loan does not occur.

    • Security

  • Working capital – the cash available to a business for day-to-day expenses.

    • Working capital

  • Credit  -a financial arrangement in which money is borrowed for a purchase and paid back at a later date.

    • Credit 

  • Debit card – a debit card immediately withdraws funds from the user’s bank account.

    • Debit card

    These are just a few of the dozens of financial terms you should know. It may seem like a lot to take in, but don’t worry! You don’t need to memorize every single term right away. Just start with the ones that are most relevant to your financial situation, and gradually build your knowledge from there.

    These are just a few of the dozens of financial terms you should know. It may seem like a lot to take in, but don’t worry! You don’t need to memorize every single term right away. Just start with the ones that are most relevant to your financial situation, and gradually build your knowledge from there.

    One helpful tip is to immerse yourself in financial content, such as finance blogs, news articles, and podcasts. This will expose you to a wider range of financial terms in a more practical context, making it easier to understand and retain the information.

    One helpful tip is to immerse yourself in financial content, such as finance blogs, news articles, and podcasts. This will expose you to a wider range of financial terms in a more practical context, making it easier to understand and retain the information.

    Another tip is to practice applying these terms to real-life situations. By putting these terms into practice, you’ll gain a deeper understanding of how they work and how they can help you achieve your financial goals.

    Another tip is to practice applying these terms to real-life situations.
    By putting these terms into practice, you’ll gain a deeper understanding of how they work and how they can help you achieve your financial goals.

    In conclusion, learning financial terms is an essential part of financial literacy. By understanding these terms, you’ll be better equipped to manage your money effectively and make informed financial decisions. So take a little time each day to build your financial vocabulary, and watch your financial confidence grow!

    In conclusion, learning financial terms is an essential part of financial literacy. By understanding these terms, you’ll be better equipped to manage your money effectively and make informed financial decisions. So take a little time each day to build your financial vocabulary, and watch your financial confidence grow!

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