Annual Percentage Rate (APR)
Yearly interest rate charged on borrowed money. The rate is expressed as a percentage and indicates how much interest the borrower will pay over the course of a year.
Assets
Things a person owns (even if they still owe money against them).
Compound Interest
Interest earned on previously accumulated interest as well as the principal.
Credit Rating/Score
A number between 280-850, depending on the credit bureau meant to show how creditworthy an individual is/how likely a borrower is to repay a debt. Higher scores mean better credit, which can lead to financial benefits such as better terms on loans.
Credit Report
A record of a borrower’s credit history. It is produced by the credit bureaus and typically consists of four sections: personal information, financial account history, history of credit applications, and public records. The information is used to calculate a consumer’s credit score, which is one of the primary factors considered in evaluating a credit application.
Budget
A plan for saving and spending based on expected income and expenses.
50/30/20 Budget
Budgeting method that divides a person's monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
Debt
Money that has been borrowed that needs to be paid back. For example, mortgage is a debt owed to the bank.
Emergency Fund
Money that is set aside in case of emergencies.
Expenses
Things that you spend money on, ex: bills, car payments, groceries, credit card payments.
Fixed Expenses
Expenses that remain constant.
Forecast
Estimating a business or person's future financial performance.
Gross Income
Total income before taxes are deducted.
Income
The money that is brought in on a regular basis through one's job, investments or other sources of money. In terms of making a budget, be sure to use your take-home pay, which is income after taxes, benefits and other deductions.
Interest
The cost of borrowing money.
Interest Rate
The cost of borrowing money, expressed as a percentage, usually over a period of one year.
Net Income
Total income after taxes are deducted.
Net Worth
The total value of a person or company, calculated by subtracting liabilities from total assets.
Principal
The amount of money that has been borrowed.
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We spoke with Austin Hankwitz of Witz Ventures on everything from the intersection of personal finance and the creator economy, to how hard budgeting and investing really are, to his favorite stocks to invest in right now (hint: ETFs FTW). Read on to learn more about Austin, his advice for the bear market, and his (highly unconventional) go-to recipe right now (spoiler: it involves meatballs and grape jelly).
We spoke with Eve and Anam (YC W '21) of Alinea on the future of investing and Gen Z as a driving force for change.
