9 essential finance terms you must know

cointelegraph.com:

Financial literacy is a critical life skill that can have a significant impact on an individual’s financial well-being and overall quality of life. It is important for individuals to continuously educate themselves on financial terms and concepts to make informed decisions and achieve their financial goals.

Financial literacy is important for a variety of reasons:

Teach your children how to be financially responsible. It doesn't matter how great an inheritance you leave them, they will squander and waste it if they lack wisdom.#FinancialLiteracy pic.twitter.com/Z18e0ysuzQ

Here are nine essential finance terms that everyone must be familiar with.

A budget is a plan that outlines expected income and expenses over a period of time. To keep track of spending and make sure that money is being spent responsibly, a budget is necessary. A monthly budget might, for instance, contain revenue from a job and costs for things, such as rent, utilities and groceries. A budget can assist people in better managing their money and preventing overspending.

Interest is the cost of borrowing money, usually expressed as a percentage. Depending on the type of loan or credit instrument, the interest rate may change. For instance, a credit card may impose an interest rate of 18% on outstanding balances. To avoid taking on high-interest debt and to make wise borrowing decisions, it is crucial to understand interest rates.

Related: How to earn interest from crypto saving accounts?

In the context of cryptocurrencies, “interest” can refer to two different things, including interest earned on crypto investments via staking and interest earned by lenders on their crypto holdings by lending them out to borrowers.

Based on variables, such as payment