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Price earnings ratio. Common market. NASDAQ. Do you know what these mean?
They’re not important in everyday life with little ones. When you’re up to your elbows in diapers, you rarely need to know the difference between a liquid and a zero-coupon CD. Let’s be honest, you mostly deal with the ingredients in homemade play-doh, or keeping track of your grocery coupons due to expire this week.
But even though knowing all these financial acronyms and gobbledy-gook jargon doesn’t affect your everyday life as a mama or home manager, they’re still good to know. The world moves pretty fast, and financial decisions are made at large that can eventually trickle down to the cost of whole-wheat flour. I’m not saying you need to be on par with a professional stock analyst, but it’s important to keep your brain in the know with what’s going on in the world.
The world at large, and your world, too
But let’s say the most you get out of understanding the day’s NYSE market data is not spacing out during that section of the nightly news with Brian Williams. It’s still important to know those basic financial terms that you do see on a regular basis. You might know most of them – bbut you might not, and you think you do. It’s always wise to double-check those words on your regular bank statement.
The most basic financial terms, defined
There are no stupid questions here at Simple Mom, and I don’t want to assume the most everyday money words are easily understood. So here are a few that I think each of us should know.
1. Interest: Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt. ex: “The monthly rate of interest is five percent” (noun); “I’m making interest payments on my car loan” (adjective).
2. Savings account: A simple bank account that earns interest from a FDIC-insured financial institution. ex: “I keep my emergency fund in my savings account” (noun).
3. Money market account (or fund): An interest-earning savings account offered by a FDIC-insured financial institution with limited transaction privileges. They often have a minimum balance requirement, and only allow for a certain number of transactions in a given time period – but the interest rate is usually higher than a simple savings account. ex: “I receive a competitive return from my money market account with minimal risk” (noun).
4. APR: Annual or annualized percentage rate, typically of interest on loans or credit. It is the amount you will pay in interest charges per year. A fixed-rate APR doesn’t change often (it still can change, though the creditor is legally required to tell you before increasing the APR). A variable-rate APR changes from time to time, and oftentimes it’s tied to another interest rate, such as the prime rate or treasury bill rate. ex: “My credit card’s APR jumped from 7 to 15 percent” (noun).
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5. Mortgage: The charging of real property by a debtor to a creditor as a security for a debt, on the condition that it shall be returned on payment of the debt within a certain period. A fixed-rate mortgage is one where the interest rate on the note remains the same through the term of the loan. An adjustable-rate mortgage (ARM, for short) is a mortgage loan where the interest rate on the note is periodically adjusted based on a variety of indices. ex: “We just refinanced our ARM to a fixed-rate mortgage with a five percent interest” (noun).
6. 401(k) and 403(b): A plan that allows an employee to save for retirement and have the savings invested, while deferring income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of the wages paid directly into his or her 401(k) account, which are invested in mutual funds, annuities, or any other investment vehicle offered by the broker. A 403(b) plan is similar, except that they can only be offered by non-profit institutions. Because these types of employers don’t generate a profit, 403(b) accounts are unable to accept profit sharing or dividends from the company. ex: “When I left my job, I rolled over my 401(k) to a Roth IRA” (noun).
7. IRA: Short for an Individual Retirement Account, an IRA is a savings or investment plan in which a person can set aside a certain amount of earned income every year; contributions and earnings on contributions are tax-free until retirement. In a Traditional IRA, your contributions are tax-deductible, yet when you retire, you then pay taxes on your withdrawls. In a Roth IRA, you are taxed on your contributions, but when you’re of retirement age, your withdraw tax-free. ex: “I converted my Traditional IRA into a Roth IRA because it offers tax-exempt, rather than tax-deffered, savings” (nouns).
8. Mutual fund: An investment program funded by shareholders that trades in diversified holdings and is professionally managed. It’s a basket for a lot of investments—mainly stocks and bonds—that would be complicated for the typical investor to manage otherwise. ex: “Mutual funds offer lower fees and a less risky portfolio than single stocks” (noun).
9. CD: Short of Certificate of Deposit, a CD is a certificate issued by a bank to a person depositing money for a specified length of time. It also tells you how much interest you will earn. CDs are generally a very low-risk, steady investment because the extra money you get back, or the interest the bank will pay you for using your money, is set ahead of time and guaranteed by the bank. ex: “If I cash out my CD early, I’m hit with a 10 percent penalty fee” (noun).
10. Credit: Borrowed money used to purchase things, with the agreement to repay the funds at a set time. ex: “I bought my new furniture on credit” (noun).
Tools to strengthen your financial vocabulary
These are some great sites that will help you teach yourself money lingo (and they also have some pretty sweet calculators):
I also recently got my hands on David Bach’s new book, “The Finish Rich Dictionary: 1001 Financial Words You Need To Know.” It’s written like a dictionary, and it plainly spells out the meaning behind 1,001 financial terms. It is a gem of a book! I’ve already used it quite a bit, and yes, I even pulled it out during the stock market update on the nightly news.
There are a few chapters sprinkled here and there on other topics, such as how to learn how compound interest can work for you, how to plan for retirement, and the top ten money mistakes people make. I don’t agree with everything he says (like that sometimes it’s okay to purchase a home with no money down), but the definitions alone are worth the book – I’m glad it’s now in my library.
I have the opportunity to give five Simple Mom readers a new copy of this book! It will further your financial vocabulary, and will be a great resource in making wise financial decisions. I think it’s a welcome addition to the discussion of basic financial skills in this Money Management 101 series.
In order to win, leave a comment on this post, admitting to one financial term you’ve heard of in your life to which you don’t know the meaning. C’mon, we all have them – show me that you need this book! The giveaway will be open until Monday, February 23 at midnight CST. I’ll randomly draw five names from the comments. And yes, no secret codes, no extra entries via Twitter right now (they’re just a little bit exhausting, and we’re really busy packing).
I look forward to reading the comments!
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I can come up with two that are relevant to the current global financial situation: 1. I don’t really understand what ‘leverage’ is; and 2. I don’t understand what ’subprime’ means in the context of mortgages.
Nancy´s last blog post…Nature. Eeeeew.
Leverage – Using someone else’s money to invest. When you take out a mortgage with a 20% downpayment, you have technically bought a house with leverage (the 80% you borrowed). The advantage is you get ALL the return if the value of the asset increases. You can make you more work a lot harder by leveraging, but if the asset value falls, you’re in more doo-doo than an octuplet diaper change.
A subprime mortgage is a mortgage made to someone with less than decent credit. If you are creditworthy, you will be offered a prime loan. Because subprime loans carry more risk, their interest rates are higher.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
Stock index fund – my husband used that term just the other night and I didn’t want to admit that I had no idea what he was talking about! Great post, btw!
Tabitha – From Single to Married´s last blog post…Getting Ready to Conceive
A mutual fund that seeks to copy the returns of a given index (like S&P 500). The advantage is there is little stock analysis needed and so the management fees on index funds are very low. Many investors think it’s near impossible to BEAT the market, so just put your money into something that stays par with the market.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
Thanks Weakonomist – you really know your stuff! (Which is why you have a website talking about finances, I’m sure.)
Tabitha – From Single to Married´s last blog post…A Little Friday Gratitude – An Escape From Reality
I don’t know what NASDAQ stands for.
Julie´s last blog post…Friday’s Faves-4
Me either I had to Google it after reading it in this entry
LaToya @ Christian Momma´s last blog post…Retail Therapy
I admit: my husband and I purchased our first home over 3 years ago, and I still have no clue what escrow means in terms of the whole money thing before closing on a house. (I do understand the insurance and property tax escrow, though.)
Heather´s last blog post…Boys vs. Girls, Nature vs. Nuture
An account set up as a holding tank for it’s user. You might have to keep money in escrow to pay for property taxes, so the bank knows you’ll be able to pay them. Apartment complexes might keep your security deposit in escrow.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
Asset allocation.
The idea having your investments in multiple asset classes to protect from the potential downside of one class falling. A good example would have been last year: Had an investor put some money in gold, oil, stocks, real estate, and cash, they would have done much better than someone in just stocks, or just real estate and stocks.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
I still don’t understand NASDAQ! Something new I need to study and learn, so I can teach it to my kids!
steadymom´s last blog post…steady thought for the day
I am still completely clueless about stocks and such. I know, not exactly a term, but I should have some idea.
I can tell you that one thing sorely lacking in my upbringing was any financial teachings of any kind. It has made me very keen on giving my child a real life lesson at every opportunity. While I am a budgeting queen, the long term financial goals are very confusing to me and often over my head…so, what term HAVEN’T I misunderstood?!?
I can say that as much NPR I listen to, Ponzi Scheme still confounds me…and what about that subprime mortgage trouble…?
Acid-test Ratio anyone?
It’s all Greek to me!
Essentially, it is a measure of how well a company will be at paying it’s short-term debts. This could be like Wal-Mart owing a supplier $1 million for a shipment of TVs. It’s very important to a company looking to establish a credit relationship with another.
Here is a more technical definition with the actual formula: http://www.investopedia.com/terms/a/acidtest.asp
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
What does NASDAQ stand for? mean?
National Association of Securities Dealers Automated Quotations
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
MER – I now know it stands for management expense ratio (basically it’s the management fee that is taken from your investments each year regardless if you make any money on them or not).
I think it’s great that you’re doing the Money Management 101 series here. I’m not exactly sure what you will cover but it’ll likely clarify a lot of issues, terms and strategies and educate people in a very encouraging way.
Great post, Simplemom. Here’s a great alphabetized index of financial terms at New York Times. (http://www.nytimes.com/library/financial/glossary/bfglosa.htm) It’s got more than 2500 listed.
My favorite that makes no sense to me is
‘Pac Man Strategy.’ But it’s fun to say and easy to envision.
Anyway, today I wrote a little something about how the Bible reminds me to not worry so much about money…even as I’m trying to figure out all these terms! http://burningbushes.org/
Thanks again.
Ah the old money talk. Up there as one of the top two discussions most likely to get heated in marriage (the other topic is sex). It’s great to have more knowledge as you enter the discussion. This is very helpful.
Corey – Simple Marriage´s last blog post…Quality Time: How To Find More And Some Ideas On How To Use It
I love with non-financial websites spread the word of finance. Thank you for this post.
Liquidity is another word that should be added to your list: which is essentially how quickly an asset can be converted into cash. A checking account is more liquid than a mutual fund. A mutual fund is more liquid than a house.
I’ve never heard of this book, but it’s going on Goodreads, it looks like fun.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
Great post! I don’t really understand exactly what hedge funds are.
I believe in the KISS rule for almost everything in my life. I especially try to keep things simple in my financial plan. If I don’t understand it, I don’t do it!
Jeff@MySuperChargedLife´s last blog post…Getting Debt-Free Using The Debt Snowball Technique
Hedge funds are very similar to mutual funds, only they go to great pains to protect your investment from falling. Essentially the goal of the hedge fund is to always make money, even in a recession.
In recent years hedge fund has spread from the definition above to “taking great risks and ignoring the potential down side”. This is why hedge funds have gotten such a bad rep.
Hedge is the keyword though, they are trying to hedge your bets, or protect you from losing money.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
I must admit I have not heard the terms liquid and a zero-coupon CD before, so I have no clue what they are.
Love this post by the way. I think this is so helpful!
Taylor at Household Management 101´s last blog post…Feb 18, Instilling The Reading Habit In Your Children
A zero coupon cd, or discount cd, is a certificate of deposit that pays no regular interest. Instead it’s sold for less than face value.
You might buy a $1000 discount CD for $900. If it matures to $1000 in 12 months, the effective rate on the CD is 11%.
the weakonomist´s last blog post…Bank Nationalization, Should We Or Shouldn’t We?
Hmm…we have an IRA but I guess I never really thought too much about what it stood for…now I do thanks to Simple Mom!
PMI – I know it stands for private mortgage insurance. Why is it needed?
Nancy´s last blog post…Simply Lunch
401(k) was a mystery to me, possibly because I have lived abroad for the past twenty years. Thank you for setting me straight!
mortgage backed securities… i still don’t understand what that means even though i’ve tried to find out the answer.
We make money talk a normal part of conversation in our house. Since our children could hold the money in their hands, we’ve allowed them to be a part of the transactions as we count our change and explain pennies to dollar, compound interest, and the value of being informed.
Writer Dad´s last blog post…Running Dialogue
You had me from the get go. Price earnings ration, common market…what? Also when it comes to stocks, I have no idea. I know you can buy, sell, and trade them but that’s about it.
What is a liquid or zero coupon cd? I also don’t understand very much about stocks, mutual funds, and couldn’t tell you how my pension is allocated. Yikes!
Amy´s last blog post…The mind of a two year old
What does DOW stand for and why do I need to care? I really want to know more but I find myself glazing over during the nightly news.
Annuities? People throw this term around like it means something. Do I have any? I have no idea.
Staci at NoIwasn’tsleeping´s last blog post…5. We Have the Best Neighbors Ever
A book I would recommend is Stock Market Knowledge for All Ages (http://www.amazon.com/Stock-Market-Knowledge-All-Ages/dp/1580086276) by Susie Hardeman. It gives a basic overview of questions and answers people often have about the stock market, on a level just about anybody can understand. And, interestingly, 100% of the proceeds go into the 529 college savings account (probably another good term for moms and dads to know!) of Ms. Hardeman’s beneficiary.
Brooke´s last blog post…Edwards Family Road to Homebirth: Post Three
OK. Anything beyond a savings account is a foreign language to me. When people start talking investments and banking, they might as week be speaking Greek. I have no idea what they are talking about. That is probably sad. I should really know more about money, especially in this economy and just being a mom and spending most of the money in our household. I like the concept of a dictionary of financial terms so I don’t have to wade through a lot of other stuff I don’t understand to get the meaning of a term at a time.
Marci´s last blog post…Don’t Worry
I am learning little by little. But, what in the world is dollar cost averaging? I read things like this in the supplements from various accounts and their definitions read like a foreign language!
If someone could make me understand how Universal Life works, I’d send them a big kiss. It twists my brain into knots!
I guess that it’s technically not a term, but all the terms I don’t get are either not in my brain or already listed by the other fine readers here.
I’m waiting on a library digital copy of Smart Women End Rich by Bach. I’ve heard the “End Rich” series is really great.
The Clever Mom´s last blog post…Finally A Winner!
Oh my, I could really use this dictionary. I would love to know what a Keogh is and also what is a PUT?
Love your site!
I have not been successful in understanding the stock mkt on my own. I apparently cannot determine a good one. The few I have purchased on my own have not done well, this was years ago, I now have “help”, for what it’s worth.
Stock index fund. Despite the explanation above, I still don’t understand it.
Annuities.
I don’t understand any of it. I don’t get 401(k)s, I just know we have one. I don’t understand the difference between a traditional and Roth IRA. All a Roth IRA makes me think of is my elementary school principle, his name was Dr. Roth.
I don’t understand what the NASDAQ does/is. I saw the definition for it but I’m still clueless.
annuities…
FamilyBalanceSheet´s last blog post…Is your child a foodie? If not, consider menu planning.
I know what CD stands for, but what is it? Also: escrow. I sort of get what they mean but only in the vaguest of terms.
Melissa D´s last blog post…Daily Candy: PS, I Love You
Roth IRA. i’d LOVE to learn more. i’m so excited about Money Management 101! thank you so much for sharing your knowledge!
i agree. i think it’s still important to be familiar w/ these financial terms even if you may not use them day to day. even though i’m a professional home manager i am the one responsible for handling the finances in our house…and that includes knowing how to invest our money wisely. plus those are probably good terms to know so you can educate your children too
. thanks for posting these!
prasti´s last blog post…discovering room service
529 plans for education, I’m really wanting to learn more about them for my boys.
LaToya @ Christian Momma´s last blog post…Retail Therapy
I just don’t get hedge funds. My husband tries to explain it, but it seems as complicated as those two blood pressure numbers (like 110/70).
A friend’s husband is a hedge fund something, and even she doesn’t really know how to explain it!
Love your site. I look forward to visiting it each afternoon during naps!
What is DOW?! How do these numbers that go up and down affect me?
Ellen´s last blog post…Around and Around We Go
This is not a word, but more a concept that I don’t get: Why is deferring taxes a good thing? I know that it will help this year, but if you have to eventually pay the taxes, how is that helpful?
And another thing that I should understand but don’t: why is it good for something to be “tax deductable”?
I really like that you have chosen this topic. I need it, and would like to pass on good financial knowledge to my little one.
I have yet to understand the difference between APR and APY.
Princess Leia´s last blog post…Odds and Ends
Saving – it’s a word I’ve only recently learned and started to value as one of the most important.
Honestly, I didn’t know the difference between a Roth and a traditional IRA until I read your post.
I don’t know if this would be considered a financial term but I still don’t get 529 college saving plans. And is it worth getting it on my own or through an financial advisor. Confusing!
I so need this book. Confused from apr to subprime!
I don’t know the difference between a bear and a bull market – I figure one is bad and the other is good though.
Even with a Business degree, I’ve had no idea what an IRA or Roth IRA were! I wish they would have taught us that. I also just found out what an ARMS Mortgage was last week. Thanks for your attention to this tough area of knowledge for many of us! There’s so much else I have to learn.
APR was one I never knew exactly what it meant…
I’m totally lost if you go beyond a basic savings or checking account. I don’t understand the stock market, I have a RothIRA but don’t really know what it is. I could really use the book
Life insurance… don’t know the difference between term and ?… I know it’s important and a worthwhile investment but I don’t understand it one bit!
Sherri´s last blog post…Another TRIPLE!!!
Risidual value… There are so many terms it’s hard to learn & retain them all.
I’ve got a term that you used in your blog that I don’t know. Annuities…. I’ve heard it before, but don’t really know what it means. Thank you for this post, it helped me out with a few terms already that I didn’t know. Much appreciated!!
Thank you for doing this blog. I wish I was a wizard at understaning all of this, but unfortunately I am not. This book would be so helpful! I totally don’t get what subprime means and how that affects me.
I hate to admit it, but I don’t know what a “bear” or “bull” market is!
I hate to admit it, but I don’t know what “bull” or “bear” market is!
Mutual fund. Even after reading the definition in your post, I don’t get it! I must be a dummy! And I still have a hard time understanding the difference between a regular IRA and a roth IRA, and I would have no idea where to get an IRA started! As you can see, I need help in this department! LOVED your blog BTW, it’s just what I’ve been wanting to know.
I am still confused about the pros and cons of tradition or roth IRA’s. Retirement planning really scares me, especially with all the uncertainty in the market.
Annuity???
How about…amortization?
I’d love to have a better understanding of the consumer price index.
Sandy´s last blog post…The New Grandbaby
I know now but did not know before the acronym, “e.b.i.t.d.a”` earnings before income taxes depreciation and amortization. Thats a mouth full, huh! I guess that why it is an acronym.
I just found about this site from Under the Highchair. I cant wait to explore!
Lori´s last blog post…Jook = Comfort
I have no clue what escrow means. I know they are different for buying and renting, but other than that, that’s all I know.
What’s a “hedge fund”?
Stacie´s last blog post…Shē Essential Beauty Review & Giveaway
hedge fund – didn’t know that one
Just watched this video which really helped me understand what we’re going through right now. The Crisis of Credit Visualized: http://vimeo.com/3261363
Karen´s last blog post…The 100 step challenge
They are all pretty foreign to me. But I’d like to know how they come up with the adjustable mortagage rate. It seems pretty random sometimes!
Argh. Money talk. I’m so clueless I can’t even think of any words that haven’t already been mentioned. I avoid the news completely.
But I have a fabulous homemade playdough recipe!!
Amanda/Crunchy Christian Mom´s last blog post…In the garden: Seedy dreams
Vested. I read my husbands 401k statement and there are paragraphs and paragraphs about this and that whether he’s vested or not. I have NO IDEA what it means!
This is the area that I need a lot of help in. Finances have never been my strong suit. Please help and thank you for having such a great blog.
What is a Put and what is a Call? I know it has to do with stocks but that’s about it.
I still don’t understand NASDAQ either
Thanks for the post Simple Mom! I look forward to reading your site each day and you are an encouragement to me
My husband and I are now on the Ramsey bandwagon and excited about the journey. We are very familiar with terms like credit
but anytime the radio goes over things like “the NASDAQ is up so many points…” I am clueless what that means. Where do the points come from?
Pamela´s last blog post…A Fun Activity
I was very excited to see that you will be posting about Money Management 101. Why is it so confusing? I’m glad to know I’m not the only one who is a bit clueless when it comes to this topic. Two terms I’m wondering about: 529 plans and ESAs. I’ve done a little research but still don’t know which is best for us and how to get one started for my son. I look forward to all the posts to come…thank you!
This dictionary sounds great…I have questions about the meanings of many of the words already posted in the comments , and I am in need of help!
Thanks for this opportunity to become acquainted with this book, and to be educated on finances!
Escrow…
death tax
short sell…I only kind of understand it, but not well enough to explain it to anyone else.
Thanks for all the great info about finances!
CDOs–credit derivatives…not sure where the O comes in and I think swap is in there, too. But whatever the term, the things that were part of the cause of the problems last fall. I learned about them with the awesome Planet Money podcast which I’d recommend to anyone (from NPR). I’ve learned so much about what’s going on from them!
the nasdaq and the nyse (they are different aren’t they???)…anyways…clueless about how the whole stock thing works…I would love to know more! i.e- purchasing stock, selling it, making money!
beca´s last blog post…WE LOST
I have NO clue what a ’stop order’ is!
I have heard the term “mortgage backed securities” tossed around lately, and kind of have an inkling, but really don’t know how they work.
Life from the Roof´s last blog post…Headed to Alaska
I don’t know anything about the Dow, or NASDAQ…or stock. At all. I can balance my checkbook. That’s about it.
One? Whoo I have a lot!! I really do not know what IRA is all about, or a Money Market account?? I really need this book, I’m getting to the point in my life where I need to get familiar with financial terms!
3boyzmom (tangie)´s last blog post…Great Freebies For Mom!
“credit default swap” was a mystery until This American Life’s excellent shows on the current financial crisis. They’ve also got a great blog called Planet Money that is really helpful. The book sounds neat – thanks for hosting the giveaway!
I had no idea what the difference was between the different types of retirement accounts- so thanks for the basic definitions!
Nicole aka Gidget´s last blog post…January and February Memory Verses
I think the more important question would be what DO I know as I know sooooooo little. I don’t know what a PMI is and I even have one on my mortgage! (I do know it is some sort of interest just for the record!)
I don’t understand the NASDAQ or the DOW.
rachel´s last blog post…Silver is the new Black (for a limited time)
Great web site! You have offered so many helpful resources and ideas. Thank you. As for the book giveaway – Nasdaq – no clue about this! Hedge Fund – no idea here either. I know I should be more aware, but daily living with 3 kids consumes me right now.
I have no idea what P/E really means. In fact, basically, all stock, or mutual fund-related stuff is a mystery to me. I try to understand it and I can’t. I watch CNBC and so on, and despite the fact that I am a college educated (with two advanced degrees) woman I can’t figure it out! My parents didn’t know anything about the stock market, and so I never really learned. My husband takes care of all of our investments, but I’d like to not feel like a ’50s housewife when it comes to our investments! It makes me feel very small and silly and girlish in a way that I don’t like.
hedge fund, do you need clippers for it?
Ebie´s last blog post…Yay – I won some more!
In an endeavour to educate myself (finally!) and to become a financially savvy mother of 3, I am slowly learning all there is to know about the financial world. This book would be SOO Helpful!
I still don’t know a lot about mortgages, and need to know soon!
Thanks.
Thanks for this post, I’m excited about the Money Management series…
My question is: What does the “Fed” do?
Stock options … for the longest time I thought they are bonus stocks that a company gives their employees. I didn’t know that you can trade them and use them as insurance for your stocks.
Hmm. I feel pretty savvy on a lot of terms (thanks, accounting degree and CPA license that I am no longer using), but when it comes to the stock market I start to go glassy eyed. My biggest question is what is the difference between a bear and a bull market? I have the vague knowledge that it has something to do with the behavior of investors, but can never keep it straight. (But I remember playing a card game about it when I was a kid.)
Loretta´s last blog post…Batteries and Bibles
I am embarassed to admit that I have no idea what the NASDAQ and DOW are or what they meant eventhough I hear about them every evening on the news.
Stacy´s last blog post…Tell us about your stash! at Sew, Mama, Sew!
What does it mean to liquidate funds? What’s a hedge fund? I just don’t get it.
Amortization… I thought I had a grip on that but it seems more confusing now than before.
I don’t really understand anything having to do with stocks, mutual funds, T Bills (which I only recently learned meant Treasury Bills), etc. I actually have all my savings in a 401K, savings account and CD because I don’t understand any terms having to do with other investments.
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