Plain-English definitions for the terms you'll encounter on your financial journey.
A situation where the amount of expenses exceeds the amount of income within a set timeframe.
A situation where the amount of income exceeds the amount of expenses within a set timeframe.
Full Retirement Age is the specific age set by the government at which you become eligible to receive your maximum monthly Social Security retirement benefit. It is essentially the 'finish line' the government uses to decide when you have worked long enough to collect your full pension payment.
A banking system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal.
A tax paid by corporations to a state for the privilege of existing as a legal entity or doing business in that state.
A notice on a credit report that tells lenders to take extra steps to verify your identity before granting credit.
The fraudulent acquisition and use of a person's private identifying information, usually for financial gain.
Services that monitor your personal information and credit files to alert you to suspicious activity or potential fraud.
A type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given timeframe.
Know Your Customer: This is a standard security process where banks and financial institutions verify your identity to prevent fraud and money laundering. It is like showing your ID at the airport to prove you are who you say you are before being allowed to board.
A fraudulent attempt to obtain sensitive information by disguising as a trustworthy entity in an electronic communication.
Proof of Work is a security process used in digital currencies where computers solve complex puzzles to verify transactions, acting like a digital notary that proves work was done to prevent fraud. Think of it like a difficult contest that someone must win before they are allowed to update a shared record book.