A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- InflationThe gradual rise in prices over time, which means each dollar buys a little less than it did before.
- Purchasing PowerHow much your money can actually buy, which shrinks when prices rise faster than your income grows.
- BudgetA plan for the money you already earn — deciding where each dollar goes before it disappears.
- Financial PlanA written roadmap that maps your income, spending, saving, and investing to reach specific money goals over time.
- Cash FlowThe movement of money into and out of your accounts over time, showing whether more comes in than goes out.
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Plain-English education — not personalized legal, tax, or investment advice.