Basic Personal Financial Concepts

A budget is a plan that helps you track your income and expenses.

Inflation is the increase in the general level of prices of goods and services over time.

A mortgage is a type of loan that is used to buy a car.

An emergency fund is a savings account that you can use for unexpected expenses or emergencies.

A credit score is a number that reflects your creditworthiness and how likely you are to repay your debts.

Compound interest is the interest that you earn on both the principal and the interest that you have already earned.

A mutual fund is a type of investment that pools money from many investors and invests it in a variety of securities, such as stocks, bonds, or money market instruments.

A deductible is the amount of money that you have to pay out of your own pocket before your insurance company pays for a claim.

A debit card allows you to spend money that you do not have in your bank account, while a credit card allows you to spend money that you have in your bank account.

PERA or the Personal Equity Retirement Account is a retirement investment program in the Philippines. It is voluntary and taxed just like any other investments.