Financial Terms.
Clear definitions for the vocabulary behind money, debt, credit, and planning.
- APR · Annual Percentage Rate
- The yearly cost of borrowing money, expressed as a percentage. Includes interest plus most lender fees. Higher APR = more expensive.
- APY · Annual Percentage Yield
- The yearly return you earn on savings, accounting for compounding. The savings counterpart to APR.
- Amortization
- A schedule that breaks each loan payment into interest and principal. Early payments are mostly interest; later ones are mostly principal.
- Asset
- Anything you own that has monetary value: cash, investments, property, vehicles.
- Bear market
- A sustained drop in market prices, typically 20% or more from a recent peak. Opposite of a bull market.
- Bond
- A loan you make to a government or company. They pay you interest and return the principal at maturity.
- Budget
- A plan for your money over a period of time. Permission to spend, not a punishment.
- Bull market
- A sustained rise in market prices. Opposite of a bear market.
- Capital gains
- The profit when you sell an investment for more than you paid. Often taxed at a different rate than ordinary income.
- Compound interest
- Interest earned on interest. Each period, the new balance grows on top of the previous balance, accelerating over time.
- Credit score
- A number lenders use to estimate how likely you are to repay debt. Built mostly from payment history, amounts owed, and account age.
- Credit utilization
- The ratio of your current credit-card balance to your credit limit. Lower is better for your credit score; under 30% is a common target.
- Diversification
- Owning many different investments so that one bad outcome does not sink the whole portfolio.
- Dividend
- A cash payment a company sends to shareholders out of profits, usually quarterly.
- Emergency fund
- Cash set aside in an accessible account for unexpected costs. Three to six months of essential expenses is a common target.
- ETF · Exchange Traded Fund
- A basket of investments that trades on an exchange like a stock. Index ETFs are a low-fee way to own a slice of a whole market.
- Index fund
- A fund that tries to match the performance of a market index rather than beat it. Low fees, broad ownership.
- Inflation
- The rate at which prices generally rise. If inflation is 3% and your savings earn 1%, you are losing purchasing power.
- Interest
- The price of borrowing money, or the reward for saving it. Expressed as a percentage rate.
- Liability
- Anything you owe: loans, credit-card balances, unpaid bills. Subtract liabilities from assets to get net worth.
- Liquidity
- How quickly an asset can be turned into cash without losing value. Cash is most liquid; a house is not.
- Mortgage
- A loan used to buy property, secured by the property itself. If you stop paying, the lender can take the property.
- Mutual fund
- A pooled investment fund. Bought and sold once per day at the closing price. Often more expensive than an ETF.
- Net worth
- Assets minus liabilities. A single number that captures your financial picture. Track the trend, not the number.
- Principal
- The original amount of money you borrowed or invested, before interest.
- Recession
- A meaningful, sustained decline in economic activity. Often defined as two consecutive quarters of negative GDP growth.
- Refinancing
- Replacing an existing loan with a new one, usually to lower the interest rate or change the term.
- Stock
- A share of ownership in a company. Stocks rise and fall with the company's fortunes and the broader market.
- Tax bracket
- An income range taxed at a specific rate. Only the income inside the bracket is taxed at that rate, not all of your income.
- Withholding
- Money your employer or bank deducts and sends to the tax authority on your behalf. Common for income and investment earnings.
- NISA(少額投資非課税制度)
- 一定額までの投資の利益が非課税になる、日本の個人投資制度。長期の資産形成に向いている。
- iDeCo(個人型確定拠出年金)
- 自分で掛金を出し、運用しながら老後資金を準備する制度。掛金は全額所得控除の対象。
- 確定申告
- 1年間の所得と税額を税務署に申告し、税金を精算する手続き。毎年2月から3月に行う。
- 源泉徴収
- 給与や報酬から所得税を会社などが天引きして、本人の代わりに納める仕組み。
- 年末調整
- 1年の終わりに、源泉徴収された税額を正しい金額に調整する手続き。多くの会社員は確定申告の代わりになる。
- 国民年金
- 20歳以上の全員が加入する、基礎となる公的年金。自営業者やフリーランスの基盤。
- 厚生年金
- 会社員や公務員が、国民年金に上乗せして加入する年金制度。保険料は会社と折半。
- 住民税
- 都道府県と市区町村に納める地方税。前年の所得をもとに、6月から翌年5月にかけて支払う。
- 所得税
- 国に納める、個人の所得に対する税金。所得が多いほど税率が上がる累進課税。
- 控除
- 課税対象から差し引かれる金額。基礎控除や医療費控除など、税負担を減らす仕組み。
- 普通預金
- いつでも入出金できる、利息の低い預金。生活費の置き場として使う。
- 定期預金
- 一定期間引き出さない代わりに、普通預金より利息が高くなる預金。
- 投資信託
- 多くの投資家から集めたお金を、専門家が株式や債券で運用する金融商品。少額から分散投資できる。
- 株式
- 会社の所有権の一部。配当や値上がり益を期待する一方、価格は上下する。
- 配当金
- 会社が利益の一部を株主に分配するお金。多くは年に1〜2回。
- 複利
- 利息にも利息がつく仕組み。長期になるほど、単利との差が大きくなる。
- 単利
- 元本にだけ利息がつく仕組み。複利と対になる考え方。
- 住宅ローン
- 家を買うための長期ローン。家そのものが担保になる。固定金利と変動金利がある。
- リボ払い
- 毎月の支払額を一定にする支払い方式。便利に見えるが、手数料が高くつきやすい。
- 信用情報
- クレジットの利用や返済の履歴を記録した個人情報。ローン審査で参照される。
- 元本
- 借りた、または投資した最初のお金。利息や運用益を含まない。
- 利息 / 利率
- 元本に対して支払う、または受け取るお金、およびその割合。金利とも言う。
- 家計簿
- 家計の収入と支出を記録する帳簿。お金の流れを把握する第一歩。
- 緊急予備資金
- 突発的な支出に備えて、すぐ使える形で持っておくお金。生活費の3〜6か月分が目安。
- 純資産
- 資産から負債を引いた金額。家計の全体像を一つの数字で表す。
- 資産
- 現金、預金、投資、不動産など、金銭的な価値のあるもの。
- 負債
- 借金や未払いの請求など、返すべきお金。住宅ローン、カードローンなど。
- インフレ
- 物価が継続的に上がる現象。同じお金で買えるものが少なくなる。
- 景気後退
- 経済活動が縮小する局面。失業や消費の落ち込みを伴うことが多い。
- 流動性
- 資産を現金に換えやすい度合い。普通預金は高く、不動産は低い。