What Is Financial Inclusion? Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size. Financial inclusion strives to remove the barriers that exclude people from participating in the financial sector and using these services to improve their
What Is Financial Independence, Retire Early (FIRE)? Financial Independence, Retire Early (FIRE) is a movement of people devoted to a program of extreme savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit. The 1992 best-selling book Your Money or Your Life by Vicki Robin
What Is Financial Infidelity? Financial infidelity occurs when couples with combined finances lie to each other about money. For example, one partner may hide significant debts in a separate account while the other partner is unaware. Another common example is when one partner makes large discretionary expenditures without discussing the matter with their partner. Key
What Is Financial Innovation? Financial innovation is the process of creating new financial products, services, or processes. Financial innovation has come via advances in financial instruments, technology, and payment systems. Digital technology has helped to transform the financial services industry, changing how we save, borrow, invest, and pay for goods. While large banks continue to
What Is the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)? The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) is a law that revised the federal government agency structure and rules governing the U.S. savings and loan banking system and the real estate appraisal industry, passed in 1989 in response to the savings and loan
What Is the Financial Institutions Regulatory Act (FIRA)? The Financial Institutions Regulatory and Interest Rate Control Act (FIRA) is a United States Federal law enacted in 1978 pertaining to depository financial institutions. The act made five major changes to these institutions and created the Central Liquidity Facility and the Federal Financial Institutions Examination Council (FFIEC).
What Is a Financial Intermediary? A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment bank, mutual fund, or pension fund. Financial intermediaries offer a number of benefits to the average consumer, including safety, liquidity, and economies of scale involved in
What Is Financial Literacy? Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. The meaning of financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be
What Are Financial Markets? Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies. Key Takeaways Financial markets refer broadly to any marketplace where the trading of securities
What Is an IRS Field Audit? A field audit is a comprehensive tax audit conducted by the Internal Revenue Service (IRS) at either the taxpayer’s home, place of business or accountant’s office, so they can examine your individual or business financial records to ensure you filed your tax return accurately. Key Takeaways An audit is
