Money Terms You Should Know

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Today we explain important money terms like interest, assets, credit and risk and give examples of how they affect you in real life. 

Today we explain important money terms like interest, assets, credit, and risk and give you examples of how they affect you in real life.

In this episode:

  • Known value of currencies [1:00]

  • Inflation, what it looks like and why it happens [3:30]

  • Interest and how it’s calculated [11:00]

  • Inflation and currency fluctuations: global examples [15:30]

  • Credit [22:00]

  • When credit turns into debt [26:30]

  • Definition of an asset [29:30]

  • How interest rates and risk is calculated based on different types of assets [31:00]

  • Liabilities and net worth [36:00]

  • How inflation, risk and value of assets determine interest rates [38:00]

  • Secure versus non-secure loans [40:00]

  • Factors in calculating student loan rates [42:00]

  • Personal risk rate versus asset risk rate [45:00]

  • Your credit score is really a personal risk score [51:00]

  • Introduction to compounding interest [54:00]