Important words used in financial basics.

 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