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Category: Financial Literacy

To be financially literate is to know how to manage your money. Financial literacy is confidently understanding concepts and vocabulary around investing, savings, debt, budgeting, banking, and more. These concepts are defined as paying off debt, creating a budget, saving for retirement, and understanding the difference between various financial instruments and terms.

Perhaps you have questions about what you need to do to improve your personal finance situation. Or you may just be looking for definitions of terminology. In any case, this resource center will help you become more financially prepared for your future.

What Are Tech Support Scams?

A cyber criminal with a hood hiding his face holds a tablet in his hand

It’s a common scenario: the phone rings, and the caller claims to be from Microsoft, notifying you that there is a problem with your computer. They ask you to give them access to the machine so they can fix the issue, which soon becomes more difficult than expected and requires advanced tech support — for […]

Understanding the Debt-to-Assets Ratio: Definition and Formula

Three sets of hands holding up a word bubble that says assets and liabilities.

The debt-to-assets ratio offers a scope of financial solvency. You can analyze your total debt-to-assets ratio as an individual, investor, or company manager by dividing your total liabilities and debts by your total assets. Assets include property, resources, or possessions that hold financial worth. Assets can be debts, but not all debts may be assets. A […]

What Is Deferred Income Tax?

A graphic of a keyboard with all black keys, where one red key reads "deferred tax."

Deferred income tax is a result of standard accounting practices differing from the current tax law. Because of these differences, businesses can sometimes pay more or fewer taxes than they are required to do so. When a business owes the government money, this is called a “deferred income tax liability.” When the business has overpaid […]

Gross vs. Net Income: What’s the Difference?

A man in a shirt and tie with a laptop and calculator counts money.

Gross and net income are similar concepts but represent two very different numbers when it comes to salary. Gross income is the salary you agree to when you accept a job offer and can be helpful when calculating taxes. Net income is your actual take-home amount after taxes, health insurance, paying into a 401(k), and […]

What’s the Difference Between Debt and Deficit?

A man with his head in his hand, looking over some debt papers.

While debt and deficit might sound similar, they’re actually distinct concepts in the world of finance and economics. Both in terms of personal debt and deficit, and the much larger and more complex debts and deficits of whole countries, there are a few key differences that set these terms apart. Debt refers to the total […]

What Is the Difference Between Saving and Investing?

A set of five stacks of coins of increasing size with a white background. The largest stack has a sproutling emerging from it.

Growing up, many of us are told of the importance of saving. “A penny saved is a penny earned” is more than an empty adage. It highlights the fact that saving is an essential form of financial security — though you’ll need quite a few pennies to protect yourself against any unexpected expenses. On the […]