Conceptos Financieros

Interest

• Cost of borrowing money or profit from investing.

• A fee paid for using a credit card.

• A type of tax on savings accounts.

• The amount of money saved in a bank account.

Income

• Money received from work, investments, or other sources.

• A type of tax paid on earnings.

• A loan taken from a bank.

• A form of savings account interest.

Equity

• Net worth (assets minus liabilities) or resources to generate wealth.

• A type of loan used for purchasing property.

• A financial term that refers to the total income of a business.

• A method of calculating interest rates on loans.

Net Worth

• The total value of what one owns minus debts.

• The total income earned in a year.

• The amount of money spent on liabilities.

• The value of assets without considering debts.

Liquidity

• The ability to convert an asset into cash easily.

• The total value of all assets owned.

• The amount of cash available at a given time.

• The rate of return on an investment.

Liabilities

• Debts or obligations that must be paid. Example: A student loan, a mortgage.

• Assets that can be converted into cash.

• Income that is earned from investments.

• Expenses that are incurred during operations.

Budget

• Planning of income and expenses for a specific period. Example: A monthly budget to save.

• A method of tracking daily expenses without any planning.

• A financial statement that only includes income.

• A tool used for investing in stocks and bonds.

Investment

• Use of money to acquire assets in order to obtain profits. Example: Buying stocks or investment funds.

• A method of saving money without any risk.

• A way to spend money on luxury items.

• A strategy to avoid financial losses.

Assets

• Resources with economic value that can generate benefits. Example: A house, shares in a company.

• Items that are always liquid and can be easily converted to cash.

• Liabilities that represent debts owed by an individual or company.

• Tangible items that have no economic value.

Expenses

• Money spent on goods or services. Example: Payment for basic services like electricity or water.

• Income received from investments or savings.

• Money saved for future use or emergencies.

• Payments made for leisure activities and entertainment.