Build Your Financial Literacy

Learn common financial terms for banking, doing your taxes, investing and retiring, and running a small business.

Introduction

• The basics of financial literacy

1. Banking and Credit Terms

• Compound interest
• ACH transfer
• Minimum balance
• Net worth
• Overdraft
• Interest rate
• FICO score

2. Investing Terms

• Asset allocation
• Cash
• Stocks vs. bonds
• Diversification and rebalancing
• Volatility and inflation
• Capital gains and capital losses

3. Stock Market Terms

• Price-earnings ratio vs. expense ratio
• Prospectus
• Mutual funds and REITs
• Exchange-traded, index, and target-date funds

4. Retirement Terms

• Traditional IRA vs. Roth IRA
• 401(k) plans

5. Tax Terms

• Tax credits
• Withholding
• Adjusted gross income

6. Business Terms

• Gains, losses, revenues, and expenses
• Income statement and P&L statement
• Cash flow
• Balance sheet

Conclusion

• Where to go next