Understand the words before making the decision.

The process of paying a loan over time through scheduled payments that generally include principal and interest.

A standardized annual measure of credit cost that can help compare loans, although fees, term, and total payments still matter.

Something of economic value you own, such as cash, investments, a business interest, or property.

How an investment portfolio is divided among categories such as stocks, bonds, and cash based on goals, horizon, and risk.

A person or organization designated to receive benefits or property from an account, policy, trust, or estate.

A plan for directing income among current expenses, future expenses, goals, debt, and flexible spending.

Money received minus money spent during a period. Positive cash flow creates room for reserves and goals.

A deposit account that generally pays interest in exchange for leaving money deposited for a stated term, subject to its withdrawal rules.

The percentage of a covered health-care cost a policyholder pays after applicable deductible rules are met.

Growth earned on both the original amount and prior growth. Time, return, fees, taxes, and losses all affect the result.

A restriction on access to a consumer credit file that can make it harder for identity thieves to open new accounts.

A record maintained by a consumer reporting company containing identifying information, credit accounts, inquiries, and certain public-record or collection information.

A number produced by a scoring model to estimate credit risk using information in a credit report. Different models can produce different scores.

Revolving balances compared with revolving credit limits, calculated for individual accounts or in total.

An amount the policyholder generally pays toward a covered loss or service before specified insurance benefits apply.

The status of an obligation after a required payment is missed. Timing, fees, reporting, and consequences depend on the contract and law.

Spreading exposure among investments or categories to reduce dependence on one holding. It does not guarantee against loss.

Liquid, protected money reserved for urgent and unplanned financial shocks rather than predictable annual costs.

The value remaining after related liabilities are subtracted from an asset; in a business, it can also describe an ownership interest.

Money held by a third party for a stated purpose; mortgage servicers may collect funds for property taxes and insurance.

A loss, event, property, or circumstance an insurance policy states it does not cover.

An annual fund operating cost expressed as a percentage of fund assets and reflected in investor returns.

A person with legal responsibility to manage money or property for someone else and act for that person’s benefit under the applicable role.

The dollar cost of consumer credit disclosed under applicable rules, which may include interest and certain fees.

An expense that is generally predictable in amount and timing, such as a set rent payment, though it can still change over time.

A contract-defined period in which a payment or balance may be handled without a specified charge or consequence; rules vary by product.

Income before specified taxes, deductions, or adjustments. A pay statement’s gross pay is not the same as take-home pay.

The unauthorized use of personal information to commit fraud, open accounts, obtain benefits, or take other actions in someone’s name.

A category of federal student-loan repayment plans that calculates payments using income and family-size rules, with eligibility and terms that can change.

A fund designed to track a specified market index before fees and tracking differences. The account holding it and the fund itself are separate decisions.

The price paid for borrowing money or compensation received for allowing money to be used, generally expressed with a rate and time period.

A debt or financial obligation, such as a loan, credit-card balance, unpaid tax, or account payable.

How readily an asset can be converted to usable cash without a major delay, penalty, or loss of value.

A standardized disclosure for many mortgages that shows estimated loan terms, payment, closing costs, and other details for comparison.

The smallest payment required by a creditor for a billing period. Paying only this amount can extend repayment and increase interest.

The current value of assets minus liabilities. It is a snapshot, not a measure of personal worth.

A condition in which the amount owed on a vehicle or property exceeds its current value.

The most a covered person generally pays for specified in-network covered health services during a plan period, excluding items the plan does not count.

The amount borrowed or the remaining loan balance before future interest; in investing, it can mean the original amount invested.

The amount paid to keep an insurance policy or health plan in force, subject to its terms.

Returning a portfolio toward its intended asset allocation after market movement, contributions, or life changes.

Replacing an existing debt with a new loan. A lower payment may come from a lower rate, longer term, added fees, or a combination.

A method of valuing a covered loss based on the cost to replace property with comparable new property, subject to policy terms and limits.

A minimum amount that must generally be withdrawn from certain retirement accounts under age and account rules that can change.

An account or contribution type funded under Roth tax rules, generally with after-tax contributions and potential qualified tax-free distributions.

Money set aside gradually for a predictable future expense such as insurance, repairs, travel, or annual fees.

Money an employer or payer sends toward a person’s anticipated tax obligation during the year.

The length of time scheduled for repayment. Longer terms can lower payments while increasing total interest and risk.

A lender’s or insurer’s process for evaluating risk, eligibility, terms, and pricing using permitted information.

An expense whose amount changes, such as food, utilities, fuel, or flexible spending.

A rate that can change according to the contract and its reference index or formula, causing payment or interest cost to change.

The process by which ownership of employer-provided contributions or benefits becomes nonforfeitable under a plan’s schedule.

A legal document that generally states how property handled through an estate should be administered and distributed under state law.