Yeske Buie’s Glossary of Finance Terms
Expanding your financial vocabulary is a great way to promote overall learning and improve your financial literacy. And it can be as easy as focusing on one new word each week! In this space, we explore different words that are relevant within the Yeske Buie community. The words will range from finance terms, to Yeske Buie catch phrases, technical financial planning language, emotional intelligence phrases, and more.
We hope you find our glossary to be a fun and useful tool, and if you have a word you’d like us to explore, let us know!
When it comes to your finances, we think it’s better to rely on a grounded wisdom than on lady luck. At Yeske Buie, we believe in coming up with creative strategies while staying grounded in the best available research. Learn more about our take on grounded investing and how you can stay financial grounded.
ARM stands for adjustable rate mortgage. A 5/1 ARM is a mortgage loan with a fixed interest rate for the first 5 years, and an adjustable interest rate for the remainder. You can typically get a lower rate on the 5/1 ARM relative to a longer term fixed-rate mortgage, and then, if it works for you, refinance within the fixed rate period.
A data breach is the intentional or unintentional release of secure information to an untrusted environment – it is typically an event where attackers actively compromise data. This is different from a data exposure or a data leak where private information is accidently made public. Check out this tip sheet from our colleagues at Schwab.
A Google search for the definition of ‘financial planning’ turns up mixed results that includes words like investments, financial circumstances, and advice. We think all these pieces matter, but only if they’re applied through a lens that is personal, relatable, and aligned with who you are and what matters to you. Learn more about our process of financial planning.
We are currently experiencing what’s known as an inverted yield curve – the yield, or return, on shorter term bonds is higher than longer term bonds (when the curve is NOT inverted, the opposite is true). The shape of the yield curve contains information about expectations for the future. One of the things the inverted curve tells us is that bond investors are predicting that, in the future, interest rates will be lower than they are now (which also implies that inflation is going to be lower).
As with any skill, practice make progress. By practicing your financial literacy skills, you may find that you have less financial stress, more control and confidence over your finances, an increased likelihood of setting and reaching goals, and a feeling of financial independence, which everyone defines differently. Start defining financial independence for yourself here.