Cash Flow Terms

A cash cushion is money kept deliberately in safe, immediately accessible accounts — a buffer that absorbs surprises and timing gaps so the rest of your finances don't have to.

Compound interest is growth earned on both your original money and on all the growth it has already produced--interest on interest--which makes balances accelerate over time rather than grow in a straight line.

An emergency budget is a stripped-down spending plan that covers only true essentials — housing, food, utilities, insurance, transportation, and minimum debt payments — used when income drops or a crisis hits.

An emergency fund is cash set aside to cover genuine surprises, a job loss, a medical bill, a failed transmission, so they don't land on a credit card or force you to sell investments at a bad time. The common target is three to six months of essential expenses.

Fintech — short for financial technology — is software and app-based services that deliver banking, payments, investing, lending, and planning tools, usually faster and cheaper than traditional institutions, and sometimes with different consumer protections.

A high-yield savings account is a federally insured savings account, usually at an online bank, paying interest rates often many times the national average for traditional savings accounts. Same safety, same liquidity, meaningfully more interest.

Private banking is a bank's premium service tier for wealthy clients — a dedicated banker plus preferential access to lending, deposit services, investment management, and trust services, usually gated by a high minimum balance.

A sinking fund is money set aside a little at a time for a specific, predictable future expense — like insurance premiums, holiday gifts, or car repairs — so the bill arrives already paid for.