1. Financial Statements:

Balance Sheet: A snapshot of assets, liabilities, and equity at a specific point in time.

Income Statement (Profit and Loss): Shows revenue, expenses, and profits/losses over a period.

Cash Flow Statement: Tracks cash inflows and outflows in a business over a period.

2. Assets:

Cash: Physical currency or its equivalent in bank accounts.

Accounts Receivable: Money owed to a company for goods or services sold on credit.

Investments: Financial assets such as stocks, bonds, and mutual funds.

Real Estate: Property or land owned by an individual or business.

3. Liabilities:

Accounts Payable: Debts owed by a business to its suppliers or vendors.

Loans: Borrowed money that must be repaid, often with interest.

Mortgages: Loans used to purchase real estate, secured by the property itself.

Credit Card Debt: Unpaid balances on credit card accounts.

4. Taxation:

Tax Deduction: Expenses that reduce taxable income, lowering tax liability.

Tax Credit: Direct reduction in taxes owed based on specific criteria.

Taxable Income: Total income subject to taxation after deductions and exemptions.

5. Budgeting:

Budget: Financial plan detailing expected income and expenses over a period.

Fixed Expenses: Costs that remain constant, like rent or mortgage payments.

Variable Expenses: Costs that fluctuate, such as groceries and utilities.

6. Retirement Planning:

401(k) Plan: Employer-sponsored retirement savings plan with tax advantages.

Individual Retirement Account (IRA): Personal retirement savings account with tax benefits.

Pension Plan: Employer-funded retirement plan that provides regular income.

7. Investments:

Mutual Funds: Investment funds pooling money from multiple investors to diversify holdings.

Stocks: Ownership shares in a company, representing a portion of its assets and earnings.

Bonds: Debt securities issued by governments or corporations, paying fixed interest.

8. Insurance:

Life Insurance: Policy providing financial protection for beneficiaries after the insured’s death.

Health Insurance: Coverage for medical expenses and healthcare services.

Property Insurance: Protects property against damage or loss, such as home or auto insurance.

9. Banking:

Checking Account: Bank account for everyday transactions and payments.

Savings Account: Account earning interest on deposited money.

Certificate of Deposit (CD): Time deposit with a fixed term and interest rate.

10. Debt Management:

Debt Consolidation: Combining multiple debts into a single loan for easier repayment.

Debt Snowball: Repaying debts starting with the smallest balances first.

11. Risk Management:

Diversification: Spreading investments across various assets to reduce risk.

Hedging: Using financial instruments to mitigate potential losses from investments.

12. Credit Score:

FICO Score: Standard credit score used by lenders to assess creditworthiness.

Credit Report: Summary of an individual’s credit history, used to calculate credit scores.

13. Inflation:

Inflation Rate: Percentage increase in the general price level of goods and services over time.

Purchasing Power: The value of money in terms of the goods and services it can buy.

14. Financial Planning:

Estate Planning: Preparing for the distribution of assets after an individual’s death.

Financial Advisor: Professional providing advice on financial matters and investment strategies.

15. Capital Gains:

Capital Gain Tax: Tax on profits earned from selling assets like stocks or real estate.