Glossary

Oct 8

Asset

noun: an item of value owned. the items on a balance sheet showing the book value of property owned
Oct 8

Cash

noun: money or its equivalent (such as a check) paid for goods or services at the time of purchase or delivery adjective: being a method of accounting that includes as income only what has been received and as expenses only those paid
Oct 8

Credit

noun: an amount or sum placed at a person’s disposal by a bank the provision of money, goods, or services with the expectation of future payment, also : financial or commercial trustworthiness  
Oct 8

Debt

noun: a state of being under obligation to pay or repay someone or something in return for something received : a state of owing
Oct 8

FICO Score

noun: a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers’ FICO scores along with other details on borrowers’ credit reports to assess credit risk and determine whether to extend credit.  It is also known as the “I Love Debt” score.
Oct 8

Money

noun: Something generally accepted as a medium of exchange, a measure of value, or a means of payment.
Oct 8

Net Worth

noun: The amount by which assets exceed liabilities.  Another way to say this is, it’s the value of everything you own (100% paid for), minus all of your debts (items you owe money on). Total Asset Value – Total Liabilities = Net Worth
Oct 8

Wealth

noun: abundance of valuable material possessions or resources all property that has a money value or an exchangeable value