Cash, paper, green – there are quite a few words that come to mind when we start talking about money, but then what? We checked in with the experts, including Lauren Bowling of L Bee and the Money Tree, to find the financial buzzwords you can bank on.
Read on for the vocab you need to help you stay in the black – or at least be more fiscally aware when conversations turn towards stocks and bonds.
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Beauty for a Purpose’s Financial Buzzwords Dictionary
bear market: a decline in the stock market, or when the market trends downward (think about a bear going into hibernation or retreating)
blue chip: a nationally recognized, well-established and financially sound company
bull market: a rise in the stock market, or when the market trends upward (think of a bull moving forward to attack or the running of the bulls)
credit score: an assigned number that indicates to lenders a person’s capacity to repay a loan—sometimes also known as a FICO score
diversification: investing your money in different areas to reduce risk.
IRA: an individual retirement account allows you to direct pretax income toward investments that can grow tax-deferred
IPO: initial public offering
leading lipstick indicator: an indicator based on the theory that a consumer turns to less expensive indulgences, such as lipstick, when he or she feels less confident about the future
net worth: what you own (money in checking, value of your retirement or savings accounts, value of a home) versus what you owe (debt, student and auto loans, mortgage)
SINK: single income no kids