Dare to Dream Course’s glossary

Money management is not an easy topic. You should be proud of yourself investing your time in learning more about it!

Some of the words we use in this course could be difficult to understand. They were, at the start, difficult for us too! Don’t panic. And don’t worry either. We’ll explain them to you when you meet them!

Here we explain to you what they mean to facilitate your learning. 

Do NOT try to remember the definition of each word. This is not what this list is made for. We’ll be explaining these concepts again, when we use them in the course. This list is designed for you to be able to go back to these definitions when you find it necessary. 



Annual Income: The amount of money you make in one year.

Annual Percentage Rate (APR): The total amount of interest costs and additional fees that you are paying on average, on a yearly basis, expressed as a percentage of your initial loan amount. The APR represents the real cost of your loan taking all fees into account. It makes it easier to compare one loan offer to another.

Cash reserve: Money put aside each month to cover extra future expenses.

Compound interest: The interest that you have to pay on the initial loan and accumulated interest from previous months and years. In the context of loan, you are likely to end up repaying increasingly more on a compound interest basis. 

Exchange rate: The rate in which one currency is exchanged for another.

Financial stability: Financial stability means having no more debts, being able to support yourself and your family financially and having savings in case of emergencies. 

Guarantor: A person who agrees to pay someone else’s loan if that person cannot afford the repayments.

Instalment: Dividing the repayment of a loan and its interest costs into several equal payments over a fixed period of time.

Interest cost: The additional amount you have to repay on a monthly basis i.e. the price of the loan.

Investment: Investing your money into an asset or item hoping to receive more money/income in return.

Liquidity: Things that you own can easily turn into cash within a short period of time.

Loan tenure: The amount of time you are given to repay a loan.

Mortgage: The bank loan you use to buy a house which also comes with an interest cost, usually spread over many years. 

Multi-Level-Marketing Business: Any kind of pyramid selling, network marketing, and referral marketing based on a strategy to encourage existing clients, distributors, or salespersons to recruit new ones. 

Principal: The original amount of money you borrowed excluding interest.

Profit: Money you make out of any kind of sales or revenues (money brought in) after deducting all costs (money spent). 

Pyramid scam:  A fraudulent system of making money based on recruiting an ever-increasing number of “investors.” Most of the time, they lure people into making “quick money”.

Repayment Schedule:  A document detailing the specific terms of a loan, such as monthly repayment, interest rates and due dates. 

Return on Investment: A percentage number which shows how much money you can make on an investment vs. how much you invested.

Risk: Different factors you have to assess before making a financial decision to reduce the chances of losing money or increasing costs.

Again, don’t try to memorize these definitions! They’re here if you need them later in your learning journey. 

Remember: Anything you feel unsure about or you don’t understand, you can ask your team leaders and your fellow students in the class chat. They are NO silly questions.