Basic Banking Knowledge Terms
Making financial decisions may be complex at times. It is common to feel confused and puzzled when it comes to an understanding numerous fundamental banking jargon. Continue reading to learn the top basic banking terminologies that everyone should know.
Compound Interest: It is the interest earned on a sum of money that you have deposited or borrowed.
Net Worth: The difference between your resources and your liabilities is known as your net worth.
Asset Allocation: This is where you decide where you want to put your income or property, such as stocks, bonds, or cash.
Rebalancing: This is the normal procedure for restoring your stock and bond percentages to their original levels.
Credit Score: Your credit amount is based on your credit record and indicates your creditworthiness. It mainly relates to your borrowing ability and banks' readiness to lend to you.
Banking can be complicated, but the following terms will surely help you understand it easily. Platforms such as Budget University Online provide the best banking program for beginners to learn basic banking knowledge.