Basic Finance

Finance Basics: Asset = Things that make money Liability = Things that cost money Net worth = Difference between what you own & owe Stock = Ownership in a business Index Fund/ ETF = A group of stocks Dividends = Profits shared with investors Bond = A loan to a business or government Portfolio = Investments you own Budget = Tracks your income/expenses Credit = Money borrowed to pay back Credit score = Number that represents the ability to repay debt