14 Financial Terms Everyone Should Know

David Sung | May 24, 2013

Financial terms can be confusing, but don’t let them stop you from investing your hard-earned money, or stop you from refinancing your home. We have compiled a list of the most common financial terms, and made them easier to understand.

Allocation- the process of dividing expenses and incomes across various departments or branches of a business.

Disinflation- when the rate of inflation begins to slow

Fixed Assets- a long-term asset such as a building, furniture, or vehicles

Home Equity Line of Credit- a line of credit that is the maximum amount a customer can borrow, and they can use their home equity as collateral.

Home Equity Loan- when a borrow uses their home equity as collateral for a loan

Keogh Plan- a defined-benefit or defined-contribution retirement plan for self-employed individuals or unincorporated businesses.

Mortgage Discount Points- this is considered a type of pre-paid interest. A lender will charge the borrower points to increase the loan above the amount of the given interest rate.

Mutual Fund- a collection of funds from several investors with the purpose of being invested into stocks, bonds or other assets.

Prime Rate- the interest rate given by banks to large corporations and is largely determined by the federal funds rate.

Return on Investment- profit made from an investment before taxes are taken out

Required Minimum Distribution- the federally mandated minimum required amount that must be given to a retirement account to an IRA holder

Share- a divided value of a company given a monetary unit

Stock- another term for a share or equity

Sunk Costs- a cost that has already been incurred and cannot be regained. Sunk costs usually help a company or individual determine how to proceed financially.

More Articles

Smart Ways to Use an Installment Loan

Considering applying for an installment loan? Learn how to use an installment loan effectively with our guide here.

Read More >

The Best Financial Podcasts to Listen to in 2024

Looking to broaden your financial knowledge this year? Here are some of the best financial podcasts of 2024 to add to your library.

Read More >

The Art of Budgeting: Mastering Your Finances in Every Season

Smart financial planning isn't something many have experience with. Learn more about the art of budgeting and how to master your finances in this guide.

Read More >

Trusted provider of cash loans since 1996

1-888-950-2274

Connect With Us

Loan Amount is subject to loan approval. Loan terms and availability may vary by location.  Approval rate based on complete applications received across all Cash Store locations. Customers can typically expect to receive loan proceeds in less than 20 minutes; however, processing times may vary. Loans / Advances are provided based on approved credit. Each applicant for credit is evaluated for creditworthiness. Vehicle is subject to evaluation for title/auto equity loans.

Please see the Licenses and Rates page for additional product details.

Cottonwood Financial offers consumer credit products that are generally short-term in nature and not intended for long-term borrowing needs.

In Texas, Cash Store is a Credit Services Organization and Credit Access Business. Loans are provided by a non-affiliated third-party lender. Please see the Licenses and Rates page for links to Consumer Disclosures and choose the one for the product and amount that most closely relates to your loan request.

Customer Portal residency restrictions apply. Availability of funds may vary by financial institution.