Rich Dad Poor Dad vocab
Mutual Funds
A variety of stocks, bonds or securities grouped together, managed by a professional investment company and purchased by individual investors through shares. The shares posses no direct ownership value in the various companies
Cash Flow
Cash coming in (as income) and cash going out as expense. It is the direction of cash flow that determines if something is income, expense , asset, or liability.
Financial Aptitude
What you do with money once you make it. How to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you.
Income statement, or Profit and Loss Statement
It measures income and expense, money in and money out
Balance Sheet
The lower part of an income -statement diagram. Supposed to balance assets against liabilities.
Income
The money that is received as a result of the normal business activities of an individual or business.
401 K
A U.S retirement plan developed by the ERISA of 1974 when companies realized they could not provide for retiree's health care.
Bond
A debt security in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest at a later date, termed maturity.
Social Security
A social welfare or social insurance program commonly funded through automatic payroll deductions to subsidize persons in their old age and with disabilities.
Financial Statement
A statement of your income, expenses assets and liabilities. Your "report card" when you leave school and what your banker wants to see before lending you money.
Golden Rule
He who has the gold makes the rules.
Entrepreneur
Someone who creates a system to offer a product or service in order to obtain a profit. Entrepreneurs are willing to accept a level of risk to pursue opportunity and are viewed as fundamentally important in the capitalistic society.
Asset
Something that puts money "in your pocket" with minimum labor.
Liability
Something that take money "out of your pocket"
Stock
The capital raised by a corporation through the distribution of shares.