Build your financial confidence

Term

What it means

Why it matters

Budget

Knowing what’s coming in (income) and going out (expenses).

Keeps you in control so you don’t run short before payday – and helps you plan for what matters, like placements.

Interest

Money you earn from savings, or money you pay when you borrow.

Helps you to earn more money on your savings or pay less on loans.

Credit score

A number that tells lenders how reliable you are at paying back debts, like a financial report card.

Impacts your ability to borrow money.

Debt

Debt is money that you owe.

Not all debt is ‘bad’. HECS helps you invest in your future at a lower interest rate – while high interest debt (like credit card debts) can hold you back financially.

Compound interest

Compounding is earning interest not just on your original money (the principal), but also on the interest you've already earned.

The earlier you start saving, the faster your money grows.

Inflation

The rate at which the prices of goods and services increase over time.

Explains why your money doesn’t go as far as it used to.

Superannuation

Money your employer contributes to your future retirement fund.

Helps to set you up for financial stability later in life.

Diversification

Spreading your investments across different assets to manage risk.

Reduces risk so one bad day in the market doesn’t undo your progress.