Loss Aversion

Assessed Value

The value a tax authority assigns to property for calculating property taxes.

Beneficiary

The person or entity designated to receive assets from a will, trust, or account.

Budget

A plan for how you will earn, spend, save, and invest your money over a set period.

Budget Deficit

When spending exceeds income over a period, forcing borrowing or dipping into savings.

Cash Reserve

Liquid funds a person or business keeps for emergencies or opportunities.

Cognitive Bias (Money)

Mental shortcuts — like loss aversion or herd mentality — that lead to irrational financial decisions.