Clear explanations without jargon or pressure.

The yearly cost of borrowing money.

Example: 20% APR on $1,000 ≈ ~$200/year (roughly).

Why it matters: Carrying a balance gets expensive fast.

Returns that earn returns.

Example: Growth stacks on top of growth over time.

Why it matters: Time is the cheat code.

How much of your credit limit you’re using.

Example: $300 used on a $1,000 limit = 30%.

Why it matters: Lower utilization usually helps your score.

A basket of investments you buy like a stock.

Example: 1 ETF can hold hundreds of companies.

Why it matters: Easy diversification without picking winners.

Textbook definition: The ease and speed with which an asset can be converted into cash.

Cash is fully liquid, something like a PS5 has cash value, but needs to be sold first.

Your emergency fund should be liquid; investments or “stuff” can take time to cash out.

Not enough money for a payment.

Rent tries to pull, account is short → bounce + fee (RBC charges $45).

Fees stack + can trigger more failed payments.

How much a price goes up and down over time.

Stock A moves between $90–$110 in a month (high volatility). A savings account stays at $100 (low volatility).

Why it matters: More volatility = bigger swings (riskier short-term), so match it to your time horizon.