Needs vs. Wants
Also called: needs and wants, wants vs needs
A need is something you must have to live and work, like food, a home, and a way to get to your job. A want is something nice to have but you can live without.
Example
A bus pass to get to work is a need. A third pair of new sneakers is a want.
Why it matters
Wants are fine. Just pay for your needs first.
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High-Yield Savings Account
A savings account that pays you much more interest than a normal one. Many are at online banks.
Income
All the money you get. It can come from a job, a side hustle, gifts, or help from the government.
Inflation
When prices go up over time, so the same money buys less. A dollar today may not buy as much next year.
Sinking Fund
Money you save a little at a time for a cost you know is coming. That way the big bill doesn't catch you off guard.
For learning, not personal financial, tax or legal advice. Rules and limits can change each year, so check official sources (like IRS.gov or your plan's documents) or a trusted pro before big decisions.