GYL DictionaryGYL

The dictionary

Money words,
explained like a human.

No jargon used to explain the jargon. Just the stuff a 23-year-old actually Googles, broken down the way you’d want a friend to break it down.

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Free money your employer adds to your retirement account when you contribute. They match a percentage of what you put in, up to a limit.

A retirement account you fund with money you've already paid tax on. So when you withdraw it later, every dollar is yours, tax-free.

Compound Interest

When your money earns money, and then that money earns money too. It builds on itself and accelerates over time.

The yearly price of borrowing money, shown as a percentage. A higher APR means the debt costs you more to carry.

A single investment that buys a small slice of hundreds of companies at once. Set-it-and-forget-it investing.

A three-digit number that tells lenders how reliably you handle borrowed money. It ranges from 300 to 850.

High-Yield Savings Account. A savings account that actually pays you a decent interest rate.

Credit Utilization

How much of your available credit you're actually using. Lower is better for your score.

All terms · A, Z

Free money your employer adds to your retirement account when you contribute. They match a percentage of what you put in, up to a limit.

The schedule showing how each loan payment splits between interest and principal over time.

The yearly price of borrowing money, shown as a percentage. A higher APR means the debt costs you more to carry.

How much your savings actually grow in a year, including the effect of compounding. Higher means your money is working harder.

Anything you own that puts money in your pocket or reliably holds its value.

Avalanche Method

A payoff strategy where you attack the highest-interest debt first. It saves you the most money overall.

Bull / Bear Market

A bull market is prices broadly rising. A bear market is prices broadly falling.

The profit you make when you sell an investment for more than you paid. The IRS takes a cut.

Compound Interest

When your money earns money, and then that money earns money too. It builds on itself and accelerates over time.

Compounding Frequency

How often interest gets calculated and added back in. More often means slightly faster growth.

A three-digit number that tells lenders how reliably you handle borrowed money. It ranges from 300 to 850.

Credit Utilization

How much of your available credit you're actually using. Lower is better for your score.

Diversification

Spreading your money across different investments so one bad bet can't sink the whole thing.

Dollar-Cost Averaging

Investing the same amount on a regular schedule, no matter what the market is doing.

Cash set aside for when life hits. A job loss, a car repair, a surprise bill. Usually three to six months of expenses.

The most widely used brand of credit score. When someone says "credit score," they usually mean this.

High-Yield Savings Account. A savings account that actually pays you a decent interest rate.

A single investment that buys a small slice of hundreds of companies at once. Set-it-and-forget-it investing.

When things slowly get more expensive over time, so the same dollar buys a little less each year.

How quickly you can turn something into spendable cash without losing value.

Minimum Payment

The smallest amount you can pay on a debt to stay in good standing. But it also keeps you in debt the longest.

Everything you own minus everything you owe. The single truest snapshot of where your money stands.

A retirement paycheck your employer promises you for life after you stop working. Increasingly rare.

Money taken out of your paycheck before taxes are calculated, usually headed into a retirement account.

The original amount you borrowed (or invested), before interest does anything to it.

Swapping an old loan for a new one with better terms. Usually a lower interest rate.

A retirement account you fund with money you've already paid tax on. So when you withdraw it later, every dollar is yours, tax-free.

Snowball Method

A payoff strategy where you clear the smallest balance first for quick wins and momentum.

Standard Deduction

A flat amount the IRS lets you subtract from your income before taxing it. No receipts required.

The slice of your income taxed at a given rate. Higher income means a higher rate on your top slice only.

Term Life Insurance

Affordable insurance that pays out if you die during a set period (the "term"). No frills, just protection.

The waiting period before your employer's contributions actually become yours to keep.