Glossary of money, investing & gaming terms
Plain-language definitions of the money management, investing, and responsible-gaming terms used across ENTEREST's education.
Last updated:
This glossary defines the core money, investing, and responsible-gaming terms used across ENTEREST's education in plain language. Each entry is a short, standalone definition you can read on its own — no jargon stacked on jargon. Use it as a reference while reading the guides, or browse it to build vocabulary before you start.
Budget
A plan that assigns your income to spending, saving, and debt payoff over a period — usually a month — so every dollar has a job.
Emergency fund
Money set aside in a safe, accessible account to cover unexpected expenses or income loss, typically three to six months of essential costs.
Compound interest
Interest earned on both your original money and the interest already added, so balances grow faster over time. It works for savers and against borrowers.
APR (Annual Percentage Rate)
The yearly cost of borrowing, including interest and certain fees, expressed as a percentage. It lets you compare loans on a common basis.
Liquidity
How quickly an asset can be converted to cash without losing value. Cash is highly liquid; real estate and many private investments are not.
Diversification
Spreading money across different investments so a loss in one doesn't sink the whole portfolio. It reduces risk but doesn't guarantee a profit.
Risk tolerance
How much investment loss you can handle financially and emotionally without abandoning your plan. It guides how much risk you should take.
Collateral
An asset pledged to secure a debt or obligation. If the borrower defaults, the lender can claim the collateral to recover value.
Asset-backed
An investment or loan tied to a specific underlying asset that secures it. Backing can reduce risk but never makes an investment risk-free.
Principal
The original amount of money invested or borrowed, separate from any interest or returns earned or owed on it.
Inflation
The gradual rise in prices over time, which reduces the purchasing power of money. It's why cash held idle slowly loses real value.
House edge
The built-in percentage of each wager a gambling operator expects to keep over time. It makes the long-run math favor the house.
Expected value (EV)
The average outcome of a bet repeated many times. For casino games it is negative — you expect to lose a small fraction of each wager.
Return-to-player (RTP)
The share of total wagers a game is built to pay back over its lifetime — the mirror of the house edge. A 96% RTP means a 4% edge.
Chasing losses
Betting more to try to win back money already lost. It's a key warning sign of gambling harm and tends to deepen losses.