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A 401(k) plan is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out.

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.

Life insurance is a contract between an insured and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

The debt snowball method is a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first, while paying the minimum on larger debts.

An emergency fund is a financial safety net designed to cover unexpected expenses or financial emergencies. Recommendations suggest having 3-6 months’ worth of living expenses saved.

The debt-to-income (DTI) ratio is a personal finance measure that compares an individual's debt payment to his or her overall income. Formula:

Budgeting is the process of creating a plan to spend your money. It enables individuals to determine in advance whether they will have enough money to do the things they need to do or would like to do.

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods. Formula: $A = P (1 + \frac{r}{n})^{nt}$

A mortgage is a loan secured by real property, typically a residential property, that the borrower is obliged to pay back with a predetermined set of payments.

Term life insurance is a type of life insurance that guarantees payment of a death benefit during a specified term. After the term expires, the policyholder can renew it or let the coverage end.

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. Scores range from 300-850, with higher scores being better.

Inflation is the rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation.

A variable interest rate is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically.

A credit report is a detailed report of an individual's credit history prepared by a credit bureau. It includes personal information, credit accounts and loans, bankruptcies, and late payments.

Retirement savings refers to the funds that individuals set aside to access during their retirement. Experts often recommend saving at least 15% of one’s income for retirement.

A fixed interest rate is an interest rate on a liability, such as a loan or mortgage, that remains the same either for the entire term of the loan or for part of the term.

Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit. Diversification and assessing one's risk tolerance are key recommendations.

Net worth is the value of all the non-financial and financial assets owned by an individual or corporation minus the value of all its outstanding liabilities.

A Health Savings Account is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High-Deductible Health Plan (HDHP).