Understanding basic financial terms is key to living a healthy financial life. With so many different financial terms to master, it can be difficult for Millennials to navigate the best path. Financial jargon can sometimes become overwhelming or misleading. In an effort to help reduce confusion, ACCC explains several financial terms.
Budget – Shows exactly how much money you have and where it’s being spent. It allows a person to find ways in which they can save money and plan for the future.
Credit Report – Outlines detailed account of a person’s financial history.
Credit Score – A number assigned to a person that represents the information on a report. Credit scores are used to understand a person’s level of risk when it comes to loan repayment.
Certificate of deposit– A savings account for a specified period of time with a higher interest rate.
Money market – A type of savings account that pays higher interest rate, but usually requires a higher balance, and in some instances other restrictions.
We hope this helped make some of those financial terms a little more manageable.