M is for Money

Acronyms are confusing. First there is the sheer number of them, practically infinite since every topic has its own set. Then the same acronym could have many different meanings depending on the subject. Personal finance of course has many abbreviations and acronyms that everyone should know. Here is a short list of those acronyms most pertinent to personal finance.

AGI – Adjustable Gross Income
AIP – Automatic Investment Plan
AMEX – American Stock Exchange
AMT – Alternative Minimum Tax
APR – Annual Percentage Rate
APY –Annual Percentage Yield
ARM – Adjustable Rate Mortgage
ATM – Automatic Teller Machine
BRIC – Brazil, Russia, India and China
CD – Certificate of Deposit
CFA – Chartered Financial Analyst
CFP – Certified Financial Planner
COBRA – Consolidated Omnibus Budget Reconciliation Act
COLA – Cost of Living Adjustment
CPA – Certified Public Accountant
CPI – Consumer Price Index
DTI – Debt to Income Ration
DRIP – Dividend Reinvestment Plan
DCA – Dollar Cost Averaging
DJIA – Dow Jones Industrial Average
EIC – Earned Income Credit
ERISA – Employee Retirement Income Security Act
ESA – Education Savings Account
ESOP – Employee Stock Ownership Program
ETF – Exchange Traded Fund
FAFSA – Free Application for Student Aid
FDIC – Federal Deposit Insurance Corporation
FHA – Federal Housing Authority
FICA – Federal Insurance Contribution Act
FRB – Federal Reserve Board
FICA – Federal Insurance Contributions Act (Social Security)
FICO – Fair Isaac Corporation
FOREX – Foreign Exchange
FSA – Flexible Spending Account
HSA – Health Savings Account
HELOC – Home Equity Line of Credit
IRA – Individual Retirement Account
IRS – Internal Revenue Service
LTV Ratio – Loan to Value Ratio
MAGI – Modified Adjusted Gross Income
MMA – Money Market Account
P/E Ratio – Price to Earnings Ratio
PITI – Principal, Interest, Taxes and Insurance
PLUS – Parent Loans for Undergraduate Students
PMI – Private Mortgage Insurance
REIT – Real Estate Investment Trust
RMD – Required Minimum Distribution
ROI – Return on Investment
S&L – Savings and Loan
SIMPLE – Saving Incentive Match Plan for Employees of Small Employers
SS – Social Security
T-Bill – Treasury Bills
TIPS – Treasury Inflation Protected Securities

Know of any acronyms I missed - leave me a comment.


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