Financial Glossary

Monthly card document with purchases, installments, charges, and amount to pay.

Payment method that concentrates purchases on a future bill.

Liquid and safe money equivalent to 3-6 months of fixed cost. Exists for unforeseen events, not goals.

Long-term credit used to purchase goods, with installment payment.

Recurring expense that returns every month and commits income before variables.

Investments with known remuneration rules before application.

Loss of purchasing power of money over time. Measured by the Consumer Price Index.

Everything you have (assets) minus everything you owe (liabilities). The honest number about how much you have accumulated.

Plan to divide income between bills, expenses, debts, reserve, and goals.

Record of all money inflows and outflows over a period. Shows if there was a surplus or deficit.

Credit contracted directly by the person, usually paid in monthly installments.

Rate charged when the credit card bill is not paid in full. Often the highest in the market.

Investments with uncertain return, subject to market fluctuation.