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
- Compound InterestInterest that earns interest — the engine behind long-term growth.
- Opportunity CostThe value of the next-best choice you give up when you decide to use your money or time on one thing instead of another.
- Present ValueWhat a future sum of money is worth today, once you account for the return it could earn between now and then.
- Future ValueWhat a sum of money today will grow into by a later date, based on an assumed rate of return.
- InflationThe gradual rise in prices over time, which means each dollar buys a little less than it did before.
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Plain-English education — not personalized legal, tax, or investment advice.