Glossary

Plain-English definitions of money and business terms.

• 1099

  A form for non-employee income.

• APR

  The yearly cost of borrowing money, shown as a percentage.

• APY

  The yearly return on savings, including compound interest.

• Budget

  A plan for what to do with your income before it disappears.

• Cash flow

  Actual money in and out, not just profit on paper.

• Compound interest

  Interest that earns interest on top of itself over time.

• Credit score

  A number that estimates how reliably you pay back borrowed money.

• Credit utilization

  How much of your available credit you are using.

• Debt avalanche

  Pay highest-rate balance first to save interest.

• Debt snowball

  Pay smallest balance first for momentum.

• Emergency fund

  Cash set aside for unplanned expenses.

• Index fund

  A fund that tracks a broad market index instead of picking stocks.

• Invoice

  A document asking a customer to pay for work or goods.

• Needs vs wants

  Distinguishing essentials from nice-to-haves.

• Paycheck

  What you take home after deductions.

• Phishing

  Fake messages designed to steal logins or money.

• Profit

  What is left after every cost is paid.

• Revenue

  Total money coming in before costs.

• Roth IRA

  A retirement account where you contribute after-tax money.

• Runway

  How long you can operate before money runs out.

• Savings goal

  A target amount with a deadline.

• Side hustle

  A small income source alongside your main job.

• Social Security

  A US government program funded by payroll taxes.

• Tax withholding

  Money your employer sends to the government on your behalf.

• W-2

  A form summarizing what you earned and what was withheld.