Review these key financial terms and their definitions.
Inflation: An increase in the general price of goods and services. You can also think of inflation as a decrease in the purchasing power of the dollar.
Assets: Anything of value owned by a person or company
Liability: Money an individual or business owes to someone else. A liability is a debt. Examples of personal assets include savings, houses, cars, and stocks.
Appreciate: To increase in value or price over time
Depreciate: To decrease in value or price over time
Note: To build wealth, the value of what you own (assets) needs to be more than the amount you owe to others (liabilities), so focus on buying assets likely to go up in value, or appreciate, over time.
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