Budget
A plan to divide income among expenses, commitments and goals.
In plain language: Decide what you can spend before spending.
Example: Set aside $800 for transport this month.
Net income
Money received after deductions.
In plain language: What actually reaches your pocket.
Example: Your salary deposit after withholding.
Liquidity
How readily an asset is accessible and the terms for converting it into money.
In plain language: How soon you can use it without a significant loss.
Example: Savings available today versus locked for a term.
CAT · Total Annual Cost
An annual measure of borrowing costs for comparison.
In plain language: Helps compare loans; it is not a monthly interest rate.
Example: Compare similar offers before signing.
GAT · Total Annual Yield
An annual indicator for comparing certain savings products under their assumptions and terms.
In plain language: Also check term, fees and inflation.
Example: Distinguish nominal GAT from real GAT, which accounts for estimated inflation.
Closing date
The day a statement period ends.
In plain language: The period’s bill is prepared.
Example: The statement groups purchases posted before closing.
Payment due date
The date by which the required payment is due.
In plain language: Do not leave it to the last minute.
Example: Set a reminder allowing time for processing.
Minimum payment
The minimum amount required for the period.
In plain language: Paying it usually does not avoid interest.
Example: The remaining balance can keep generating costs.
Payment to avoid interest
The statement amount that avoids ordinary interest on eligible purchases when paid on time.
In plain language: Look for that line on your statement.
Example: Cover the remaining amount after checking credited payments.
MSI · Interest-free instalments
A purchase split into monthly payments under specific terms.
In plain language: It commits some of your future income.
Example: $6,000 in 6 payments of $1,000 if terms are met.
Interest rate
A percentage used to calculate borrowing cost or return over a period.
In plain language: Check whether it is monthly or annual.
Example: A nominal annual rate is not the same as CAT.
Compound interest
Interest is added to the balance for later calculations.
In plain language: Previous returns also affect the next calculation.
Example: A simulation does not guarantee future returns.
CLABE / SPEI
Standardized bank account number / Mexico’s interbank electronic payment system.
In plain language: CLABE identifies an account; SPEI enables transfers between participants.
Example: Confirm the destination CLABE before transferring.
Annual fee
A periodic product fee specified in the contract.
In plain language: It may apply even if you pay no interest.
Example: Check when it is charged and any waiver conditions.
Credit limit
The amount the issuer makes available under the contract.
In plain language: It is not your income.
Example: A $20,000 limit does not mean you can afford to spend $20,000.
Risk
The possibility that an outcome differs from expectations, including a loss.
In plain language: Invested money may not come back in full.
Example: An investment may fall just when you need to sell.