(877) 236-6828 sales@benovate.com
MEMBER PORTAL LOGIN

Money Terms YOU Should Know

Meghan Hatalla

Benovate’s Expert Blogger

Money Terms

You learn a lot of things of varying importance at school, but that doesn’t typically include a lot about money. Unless you major in finance or business, college usually doesn’t help you out either. But as an adult who pays taxes, receives a paycheck, and (hopefully) has a savings and retirement account, you can’t live in ignorance forever.

Money can be a stressful subject for those who don’t have their finances under control. Luckily the first step in financial literacy is learning more about the subject. Forbes put together a list of the top 25 money terms people need to know. Here are the highlights:

Here are 6 Money Terms You Should Know:

1. Compound Interest

Think of it as interest on interest, and it’s a good thing to see when shopping for savings and/or retirement accounts. Most accounts allow you to accrue interest based on the amount deposited in the account. Compound interest allows you accrue interest on the deposits AND the interest. This adds up to a not-inconsequential amount over time.

2. FICO Score

When people talk about their credit, they’re usually framing it with their FICO score–an acronym from the Fair Isaac Corp (they formulated the methodology that delivers your score). Your FICO score takes into account any outstanding debts, if payments have been made on time, length of credit history, etc. Scores can range from 300 to 850; a technically *okay* score is over 620.

3. Amortization

This is the process of paying off debt over time, like a conventional mortgage. Payments are divided into equal amounts for the duration of the loan making it the simplest repayment model — Helping you pay down the interest, principle and the balance.

Are You a Member?

Log in to Benovate to earn your points for today, and to gain more financial knowledge!

Don’t have access?  Talk to your employer about getting started.

4. Escrow

An account held by an impartial third party in a transaction–typically used in relation to home-buying. A buyer may put money into an account which the seller can’t access until certain terms have been met. Escrow accounts can also be used to pay property tax and insurance premiums for a home. For many, it’s rolled right into the mortgage.

5. Defined-Benefit Plan

These are employer-sponsored retirement plans in which a benefit is promised to the employee based on length of employment, earnings, etc. These are increasingly uncommon (expensive for employers), so #6 is becoming more popular.

6. Defined-Contribution Plan

A retirement plan that companies may offer to workers. The 401(k) is the most common. The money that goes into these accounts is pre-tax (so you don’t pay taxes on amounts deposited). The money is then invested, which means you, as the investor, are the one weathering economic fluctuations.

Take Away…

As you go through life, chances are you’ll hear these terms and be expected to know what they are and to make decisions regarding them (like filling out paperwork for a new job and seeing that you have to enter an amount for a defined-contribution plan). With these six terms, you’ll increase your financial literacy and be slightly better equipped to handle those situations!

5 Simple Ways to Burn Those Thanksgiving Calorie

  health Turkey-Day Inspired Workouts   Stephanie Lanik Strategic Marketing Coordinator By: Stephanie Lanik Strategic Marketing Coordinator 5 Simple Ways You Can Burn Those Thanksgiving Calories Thanksgiving dinner is a meal worth celebrating. Turkey, stuffing,...

5 Reasons Why and How You Should Clean Out Your Fridge

  health How Clean is Your Fridge?   Mikayla Borchert Benovate's Expert Blogger By: Mikayla Borchert Benovate's Expert Blogger 5 Reasons Why and How You Should Clean Out Your Fridge It seems like almost every day is some sort of holiday. This week, celebrate something...

4 Ways to Have Fun and Stay Active as the Temps Drop

  health Don't Hibernate - Stay Active!   Meghan Hatalla Benovate's Expert Blogger By: Meghan Hatalla Benovate Expert Blogger 4 Ways to Have Fun and Stay Active as the Temps Drop At the Benovate office,  in Minnesota, winter is no joke. From freezing temperatures to...

Get Yourself Into Spooky Shape with these 5 Halloween Themed Exercises

  health Halloween Themed Workouts   Mikayla Borchert Benovate Blogger By: Mikayla Borchert Benovate Blogger Get Yourself Into Spooky Shape! As October comes to a close, it’s likely that your days are full of all kinds of sweets. Caramel apples and candy corn are...

5 Self-Improvement Books to Motivate & Inspire.

  personal growth Advice Books Worth Reading This Fall   Mikayla Borchert Benovate Blogger 5 Self-Improvement Books to Motivate & Inspire You Fall is the coziest time of year. Knitted sweaters and warm drinks make the chilly weather something to look forward to....

4 Reasons Why Family Dinners Matter

  relationship Family Dinners Matter   Stephanie Lanik Benovates Staff & Marketing Expert October: Eat Better, Eat Together Month We are now full swing into the school year, and we all know what that means... homework, sports practices, and an earlier bedtime for all....

5 Ways to Get Financially Organized Before the Holiday Season

  finance Pre-Holiday Financial Clean Up   Meghan Hatalla Benovates Expert Blogger Get Organized and Clean Up Your Finances The first week in October is National Get Organized week. So, what better time to get your financial situation in order, just in time for the...

4 Simple Tips for Organizing Your Work-Life Balance

  health Organizing Your Work-Life Balance   Meghan Hatalla Benovates Expert Blogger Maintain a Healthy Work-Life Balance Balance is never perfect. And that’s especially true when it comes to work and life. There will probably often be times when work demands more of...

7 Ways to Whip Your Fall Budget into Shape

  finance Whip Your Fall Budget into Shape   Mikayla Borchert Benovate Staff & Content Editor Start Autumn Off on the Right Foot. We all have financial goals, and sometimes, a tendency to stray from those goals. To stop the snowball effect, it’s a good idea to get...

Simple Ways to Start Your Journey to Self-Improvement

  personal growth Start Your Journey to Self-Improvement   Mikayla Borchert Benovate Staff & Content Editor Time to Improve! There’s a concept in some workplaces that the time you spend at your desk belongs to the company.  To a point, it’s true that you should be...

Want new articles before they get published?
Subscribe to our Awesome Newsletter.

Schedule a Discovery Demo

Page: ALL; Location: Footer

DID YOU KNOW? Benovate has the happiest members! Read some client success stories here...