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

Cash Store’s Website Has a New Look

Cash Store's updated website is streamlined to help users access information online about personal loans, installment loans, and title loans.

Read More >

Difference Between Secured and Unsecured Installment Loans

Learn the difference between secured and unsecured personal installment loans as we break it down and explain with simple definitions and layman's terms.

Read More >

COVID-19 Job Resources

Many Americans are affected by government orders in response to COVID-19 that range from sheltering in place to self-isolating, leaving a lot of people in financial stress.

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. Cottonwood Financial uses a proprietary model to evaluate the creditworthiness of each applicant for credit. 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. 

© 2021 Cash Store. All Rights Reserved.