Here are some financially based ABCs with bullet points to teach the babies..

A:

• Assets: Things that you own that have value, such as savings accounts, stocks, bonds, and real estate.
• Annual percentage rate (APR): The annual interest rate you pay on borrowed money, including credit card balances, loans, and mortgages.
• Amortization: The process of paying off a loan over time with regular payments.

B:

• Budget: A plan for how you will spend and save your money, taking into account your income, expenses, and financial goals.
• Bonds: Debt securities that are issued by corporations or governments to raise money from investors, who earn interest on their investment.
• Broker: A professional who buys and sells stocks, bonds, and other securities on behalf of investors.

C:

• Credit score: A number that represents your creditworthiness based on factors such as your payment history, outstanding debts, and length of credit history.
• Compound interest: Interest that is calculated on both the principal amount and any interest that has already accrued.
• Capital gains: The profit you earn when you sell an asset for more than you paid for it.

D:

• Debt: Money that you owe to others, such as credit card balances, loans, and mortgages.
• Dividends: Payments made by companies to their shareholders as a share of the company’s profits.
• Diversification: Spreading your investments across different asset classes and sectors to reduce risk.

E:

• Emergency fund: Money that you set aside to cover unexpected expenses, such as medical bills or car repairs.
• Equity: The value of an asset minus any outstanding debts or liabilities.
• Exchange-traded fund (ETF): A type of investment fund that holds a basket of assets, such as stocks or bonds, and is traded on a stock exchange like a stock.

F:

• Financial advisor: A professional who provides advice on financial planning, investment strategy, and other financial matters.
• Fixed income: Investments that pay a fixed rate of interest, such as bonds or certificates of deposit (CDs).
• FICO score: A credit score developed by the Fair Isaac Corporation that is widely used by lenders to assess creditworthiness.

G:

• Gross income: Your total income before taxes and other deductions are taken out.
• Growth stocks: Stocks of companies that are expected to grow faster than the market average, but may not pay dividends.
• Guaranteed investment certificate (GIC): A type of investment that pays a fixed rate of interest for a set period of time.

H:

• High-yield savings account: A savings account that pays a higher interest rate than a traditional savings account.
• Hedge fund: An investment fund that uses complex strategies to generate high returns, often with high risk.
• Home equity: The value of your home minus any outstanding mortgage debt.

I:

• Inflation: The rate at which the general level of prices for goods and services is rising.
• Index fund: A type of mutual fund or ETF that tracks a specific market index, such as the S&P 500.
• Interest rate: The percentage rate at which interest is calculated on borrowed money or earned on investments.

J:

• Joint account: A bank account that is owned by two or more people.
• Junk bonds: High-yield bonds that are considered to be high-risk investments because of the likelihood of default.

K:

• Keogh plan: A type of retirement plan for self-employed individuals or small businesses.
• Key performance indicator (KPI): A measurable value that indicates how well a company or investment is performing.

L:

• Liability: The amount of money that you owe to others, such as loans, mortgages, or credit card balances.
• Leverage:

Leverage:

• The use of borrowed money to increase the potential return on an investment.
• Line of credit: A type of loan that allows you to borrow money up to a predetermined limit, usually for a specified period of time.
• Long-term capital gains: The profit you earn when you sell an asset that you have held for more than a year.

M:

• Mutual fund: An investment fund that pools money from multiple investors to purchase a portfolio of assets, such as stocks, bonds, or other securities.
• Money market account: A type of savings account that usually pays a higher interest rate than a traditional savings account, but may require a higher minimum balance.
• Mortgage: A loan that is used to purchase a home or other real estate, with the property serving as collateral for the loan.

N:

• Net worth: The value of your assets minus your liabilities.
• NASDAQ: An American stock exchange that is known for its technology and growth-oriented stocks.
• Non-fungible token (NFT): A type of digital asset that represents ownership of a unique item or piece of content, such as artwork or music.

O:

• Options: Financial contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specified price within a certain time period.
• Overdraft: A negative balance in a bank account that occurs when you withdraw more money than you have available.
• Open market operations: The buying and selling of government securities by a central bank to control the money supply and influence interest rates.

P:

• Portfolio: The collection of investments that you own, including stocks, bonds, and other assets.
• Pension plan: A retirement plan that is funded by an employer, typically offering a defined benefit or contribution.
• Private equity: Investments in private companies or assets that are not publicly traded on a stock exchange.

Q:

• Qualifying event: An event that triggers a change in your health insurance coverage, such as the loss of a job or a change in marital status.
• Quantitative easing: A monetary policy used by central banks to increase the money supply and stimulate economic growth.

R:

• Roth IRA: A type of individual retirement account that allows you to contribute after-tax dollars and withdraw funds tax-free in retirement.
• Real estate investment trust (REIT): A type of investment that owns and manages income-producing real estate properties, such as apartment buildings or shopping malls.
• Return on investment (ROI): The profit or loss you earn on an investment, expressed as a percentage of the initial investment.

S:

• Savings bond: A type of bond issued by the U.S. government that pays interest and is sold at a discount to its face value.
• Stock: A share of ownership in a company, which entitles the holder to a portion of the company’s profits and voting rights.
• Social Security: A federal government program that provides retirement, disability, and survivor benefits to eligible individuals.

T:

• Treasury bond: A type of bond issued by the U.S. government that has a maturity of more than 10 years and pays interest semiannually.
• Tax-deferred: An investment or retirement account that allows you to defer paying taxes on the contributions and earnings until you withdraw the money.
• Time value of money: The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

U:

• Underwriting: The process of evaluating and assuming risk for insurance policies or investment offerings.
• Unit investment trust (UIT): A type of investment fund that holds a fixed portfolio of stocks, bonds, or other securities, and is designed to terminate after a certain period of time.
• Uniform Gift to Minors Act (UGMA): A law that allows adults

to give gifts to minors, which are then held in a custodial account for the benefit of the child.

V:

• Volatility: The degree of fluctuation in the price of an asset, such as a stock or bond.
• Venture capital: Funding provided to startup companies or small businesses that have high growth potential, in exchange for an ownership stake in the company.
• Variable annuity: An annuity that allows the value of the annuity to fluctuate based on the performance of the underlying investments.

W:

• Wealth management: The professional management of an individual’s assets and investments, often including financial planning and tax management.
• Will: A legal document that specifies how a person’s assets will be distributed after their death.
• Withdrawal: The process of taking money out of an investment or bank account.

X:

• Exchange-traded fund (ETF): A type of investment fund that trades like a stock on a stock exchange and is designed to track the performance of a specific index or group of assets.

Y:

• Yield: The return on an investment, expressed as a percentage of the initial investment.
• Yield curve: A graph that plots the yields of bonds with different maturities, often used to predict future changes in interest rates.
• YOLO: A slang term that stands for “You Only Live Once,” often used to justify impulsive or risky financial decisions.

Z:

• Zero-coupon bond: A type of bond that does not pay regular interest payments, but instead is sold at a discount to its face value and pays the full face value at maturity.
• Zombie debt: Old debt that has been written off by the original creditor but is still being pursued by debt collectors or other third parties.
• Zipper merge: A driving technique where drivers use both lanes until the merge point, then alternate merging into a single lane, often used as a metaphor for cooperation and efficiency.