My name is Adrien and I have been in the bussiness management program for about two years now. My glossary will be for people who want to learn more things about basic finance and the terms used daily in this field. A lot of people struggle with their personal finances and I think it's important to help them know more about managing their wealth. This glossary will contain 20 terms with definitions and even some images for some of the terms. I asked different people what words they struggle to understand in finance so I could include them in my glossary, and I found the definitions on the internet. You should consult my glossary next if you want to learn more aboout finance terms.
assets
noun
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Example: The company's assets include cash and real estate.
fr: actifs
budget
noun
An estimate of income and expenditure for a set period of time.
Example: Our bugdet is not enough to cover all the expenses.
fr: budget
cash flow
noun
The total amount of money being transferred into and out of a business, especially as affecting liquidity.
Example: The cashflow from this business is great.
fr: des flux de trésorerie
credit score
noun
A credit score is a three-digit number, typically ranging from 300 to 900 in Canada, that summarizes an individual's credit risk and financial reliability to lenders.
Example: My father's credit score is really good.
fr: cote de crédit
debt
noun
Something, typically money, that is owed or due.
Example: My college debt is really hard to pay off.
fr: dette
dividend
noun
A dividend is a distribution of a portion of a company's earnings to its shareholders, authorized by the board of directors as a reward for investment.
fr: dividende
equity
noun
Equity is an ownership interest in property that may be subject to debts or other liabilities.
Example: I have equity in my brother's company.
fr: équité
expenses
noun
The cost required for something; the money spent on something.
Example: I have a lot of expenses in my daily life.
fr: dépenses
income
noun
Money received, especially on a regular basis, for work or through investments.
Example: My income has really improved over the last 10 years.
fr: revenu
inflation
noun
A general increase in prices and fall in the purchasing value of money.
Example: The inflation in Canada is getting really bad.
fr: inflation
interest
noun
Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
Example: I pay a lot of interest on my car payment.
fr: intérêt
investment
noun
Investment is committing money or resources to an asset, venture, or property with the expectation of generating a future return, profit, or appreciation (increase in value) over time, helping to grow wealth and meet financial goals like retirement or education, unlike simple saving which just preserves money.
Example: My investments have really paid off recently.
fr: investissement
liabilities
noun
A liability is a financial obligation or debt that a person or company owes to an outside party, representing a future sacrifice of economic benefits like money, goods, or services, and is recorded on the right side of a balance sheet as the opposite of an asset.
Example: My company's liabilities include loans and taxes.
fr: passifs
loan
noun
A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
Example: I got a loan from the bank for my scooter.
fr: prêt
mortgage
noun
A mortgage is a loan used to buy real estate, where the property itself serves as collateral, meaning the lender can take it (foreclosure) if the borrower fails to repay the debt, typically over a long term (like 15 or 30 years) with regular payments of principal and interest.
Example: It will take me another 15 years to pay my mortgage.
fr: hypothèque
net worth
noun
Net worth is a key measure of financial health, calculated as the total value of everything you own (assets) minus everything you owe (liabilities), essentially "what you own minus what you owe".
Example: My net worth is about 10 million dollars.
fr: valeur nette
profit
noun
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Example: I made a profit on my house when I sold it.
fr: profit
savings
noun
The money one has saved, especially through a bank or investment plan.
Example: I have a lot of savings in the bank.
fr: économies
stock
noun
The capital raised by a business or corporation through the issue and subscription of shares.
Example: I bought a stock from a company I believe in.
fr: action
tax
noun
A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.