Glosario

Los términos que usan las lecciones, en palabras sencillas. Cada uno enlaza con la lección que lo explica en contexto.

Los términos y sus definiciones están en inglés, como las lecciones.

A

Account aggregation
Seeing balances from many institutions in one place, through an app or a regular manual list.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts
Account sprawl
Accounts that piled up over years of jobs, offers and life events, many of them no longer doing a job.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts

B

Baseline
Your projection with today's numbers and no changes, the line every scenario is compared against.En contexto: What-If Scenarios: Test a Money Decision Before Making It
Beneficiary form
The form naming who receives a pension or insurance payout. Depending on the scheme, it is binding or only a guide. Some schemes call it a nomination or a designation.En contexto: Financial Planning That Fits Every Kind of Household
Buffer
Money, insurance or room in a plan kept for events nobody can date in advance, such as an illness or a redundancy.En contexto: Life Events: Planning Your Finances for a Baby, a Home or a Move

C

Career break
A period of reduced or no income, such as parental leave, a sabbatical, study or caring, as opposed to swapping one job for another.En contexto: Life Events: Planning Your Finances for a Baby, a Home or a Move
Cash flow forecast
A month-by-month view of money coming in and going out over the next 12 to 24 months, including costs that land only once a year.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short
Cash runway
How many months your liquid money would cover your real costs if income stopped today.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short
Credit utilisation
Your card balances divided by your total credit limits. Many credit scores weigh it heavily.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts

D

Default assumption
The guess a rule or product makes about who you are when you make no choice, such as “the beneficiary is the spouse”.En contexto: Financial Planning That Fits Every Kind of Household
Deliberate designation
A written choice, in a form the law or an institution accepts, meant to replace or influence a default: a will, a beneficiary form or a power of attorney.En contexto: Financial Planning That Fits Every Kind of Household
Delta
The difference between a scenario and the baseline. Comparing it isolates the effect of the changed input, although its size still depends on assumptions such as the growth rate and time horizon.En contexto: What-If Scenarios: Test a Money Decision Before Making It
Deposit protection
A national scheme that repays savers up to a limit per person per bank if the bank fails: €100,000 in the EU, for example.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings
Direct transfer
Moving pension or investment money straight from one provider to another, so it never passes through your own bank account and keeps its tax status.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts
Dormant account
An account that still exists but no longer has a job, sometimes charging a fee for being inactive.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts
Downside case
The scenario with the less favourable inputs: lower growth, lower income or an unplanned cost. Running it first shows whether a plan still holds.En contexto: What-If Scenarios: Test a Money Decision Before Making It

E

Expense ratio
A fund's yearly running cost, as a percentage of the money invested: 0.75% costs €75 a year on €10,000.En contexto: How Much Will Your Savings Grow? Financial Projections
A fund's yearly running cost, as a percentage of the money invested: 0.75% costs €75 a year on €10,000.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts
Expression of wishes
A beneficiary form or nomination that a scheme treats as guidance: its trustees decide who is paid and use it as evidence of what you wanted.En contexto: Financial Planning That Fits Every Kind of Household

F

Forced heirship
Rules in some countries that reserve a share of an estate for children, and sometimes a spouse, whatever a will says.En contexto: Financial Planning That Fits Every Kind of Household

H

High-yield savings account
A bank savings account paying a variable rate close to the central bank's short-term rate, with instant or next-day access and deposit protection up to the local limit.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings

I

In-kind transfer
Moving investments themselves from one broker to another, instead of selling them and moving cash.En contexto: Account Consolidation: Combining Old Pensions and Bank Accounts
Income shift
The pay a household gives up when someone reduces paid work, including lower pay afterwards and the pension contributions that would have come with it.En contexto: Life Events: Planning Your Finances for a Baby, a Home or a Move

L

Life event
Anything that changes income, costs or who is in the household for a long stretch: a child, a career break, a home, a move, a separation, caring for a parent.En contexto: Life Events: Planning Your Finances for a Baby, a Home or a Move
Liquid assets
Money you can spend within days without selling at a loss or paying a penalty, such as a current account or easy-access savings.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short
Lumpy expense
A cost that lands in one month rather than every month, such as an annual insurance premium, a tax bill or a holiday.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short

M

Money-market fund
A fund that lends money for very short periods to governments, banks and large companies. Its yield follows short-term interest rates closely; it is regulated for safety but not covered by deposit protection.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings
Monte Carlo simulation
Running a plan thousands of times, each with a different random sequence of yearly returns, to see how widely the results spread.En contexto: How Much Will Your Savings Grow? Financial Projections

N

Net pay
What actually lands in your account after tax, pension contributions and other deductions.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short
Nominal return
A return before inflation is taken off. It makes future amounts look bigger than what they will buy.En contexto: How Much Will Your Savings Grow? Financial Projections

O

Opportunity cost
What money could have earned elsewhere. Cash used for a house deposit stops earning market returns.En contexto: Life Events: Planning Your Finances for a Baby, a Home or a Move

P

Percentile
A point in a spread of results. The 10th percentile is the result that only one run in ten did worse than.En contexto: How Much Will Your Savings Grow? Financial Projections
Power of attorney
A document naming who may act for you, for money or for health decisions, if you cannot make decisions yourself.En contexto: Financial Planning That Fits Every Kind of Household
Projection
A calculation that plays today's savings, contributions and assumptions forward year by year. It shows where things lead if the inputs hold; it is not a prediction.En contexto: How Much Will Your Savings Grow? Financial Projections
Purchasing power
What an amount of money can buy. When prices rise faster than a balance grows, the balance buys less even though the number on the statement stays the same.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings

R

Real return
A return after inflation is taken off, so it shows what the money will buy. 7% growth with 2% inflation is about a 5% real return.En contexto: How Much Will Your Savings Grow? Financial Projections
A return after inflation is taken off, so it shows what the money will buy. 7% growth with 2% inflation is about a 5% real return.En contexto: What-If Scenarios: Test a Money Decision Before Making It
Recognition gap
The distance between how your household works and what the law or an institution recognises, such as a partner who is family in practice but a stranger on paper.En contexto: Financial Planning That Fits Every Kind of Household

S

Sequence-of-returns risk
The risk that bad market years arrive just as you start drawing money out, which does more lasting damage than the same years later on.En contexto: How Much Will Your Savings Grow? Financial Projections
Short-duration bond fund
A fund holding bonds that come due within a few years. It usually pays a little more than cash, and its price moves slightly when interest rates change.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings
Shortfall month
A month whose costs exceed income by more than the current-account buffer can absorb.En contexto: Cash Flow Forecasting: Plan for the Months That Run Short

T

Term deposit
A bank deposit locked for a fixed period at a fixed rate, usually with a penalty for taking the money out early.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings
Treasury bill
A short-term loan to a government, usually for one month to a year. You pay slightly less than its face value and receive the full amount when it comes due; the difference is the interest.En contexto: Cash Management: Where to Keep Your Emergency Fund and Cash Savings

W

What-if scenario
Your projection with one input changed, to see what a decision does before you make it.En contexto: What-If Scenarios: Test a Money Decision Before Making It