Finally, a financial dictionary to help you navigate the complicated world of finances. You’ve been hearing a lot of financial words lately, but you don’t know what they mean.
We can help! Our dictionary is here to make sure that you are financially literate and understand the language of money. It includes definitions for words related to personal finance, banking, investing, retirement planning, and more.
This dictionary will be your go-to resource when it comes to understanding the world of money and how it impacts your life. Whether you want to learn more about credit cards or 401Ks, we have all the information right here at your fingertips.
The words “budget” and “investment” sound intimidating. But they don’t have to be! Whether you’re just starting out or looking for a refresher, we’ve compiled a handy financial dictionary for you with definitions of key terms.
Definitions are in alphabetical order so you can easily find the word that’s on your mind. We hope it helps make some financial decisions easier!
Ready to learn these terms? Let’s get to it! You can do this, remember to bookmark this page for your own convenience as financial words pop up on a daily basis.
Your Personal Financial Dictionary
401K Plan: A 401(k) plan is a company-sponsored retirement account that employees can contribute to. Employers may also make matching contributions.
In a traditional 401(k), employee contributions reduce their income taxes for the year they are made, but their withdrawals are taxed.
With a Roth, employees make contributions with post-tax income but can make withdrawals tax-free.
403B Plan: 403(b)s resemble 401(k)s but they serve employees of public schools and tax-exempt organizations rather than private-sector workers.
Budget: An estimate of income and expenditure for a set period of time.
EMI: A fixed payment amount made by a borrower to a lender at a specified date each month. Equated monthly installments are applied to both interest and principal each month so that over a specified number of years the loan is paid off in full.
FI: Financial independence
Financial Advisor: A person who is employed to provide financial services or guidance to clients.
Financial Planner: A person employed to manage the personal finances of clients.
FIRE: Financial independence, retire early
Geoarbitrage: Geoarbitrage involves moving to a place with a lower cost of living while keeping the same level of income. This could be income from self-employment, retirement income, or a traditional job transfer. Lowing the cost of living means it’s easier to make that income stretch farther.