dollarsignHave you ever been in a money conversation and found yourself completely clueless?

You know the kind of conversation, right?

You’re chatting it up at some networking event, or kicking it with a financial guru, and you listen, smile, but don’t have ANY idea what they are talking about?


Well, at least I didn’t. I would just nod my head and try to figure out what an “asset” meant in the context of the conversation.

I didn’t want to look foolish and was too embarrassed to ask.

Can you relate?

I realized that as I took on really empowering Black Women to break the million-dollar mark, I needed to make sure you had a working knowledge of conversationally used money terms so you are grounded in your success.

It sucks being afraid to ask a question for fear of looking as if you are not credible because “old money” is throwing terms around like everybody has an MBA from Harvard. (#whatever)

So here are twelve terms that will get you started so you don’t have to EVER feel less.

Most of these definitions came from an awesome resource worth exploring, (except where noted). This site makes finances make sense to regular folk. Meaning you don’t have to have three PhD’s to understand what they are taking about. The dictionary there gives you the definition of the term AND breaks it down so it makes sense. It is a great resource. Check it out when you can and bookmark it for future reference. This list is just a beginning. Think of it as conversational French or Spanish.

I listed the money words in alphabetical order just for simplicity’s sake. Make a note for yourself of which terms are a bit different from what you thought. And post what you thought it meant in contrast to this definition. I would love to compare notes! Enjoy!

Asset—A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.

According to the site, “Assets are bought to increase the value of a firm or benefit the firm’s operations. You can think of an asset as something that can generate cash flow, regardless of whether it’s a company’s manufacturing equipment or an individual’s rental apartment.”

Capital—Financial assets or the financial value of assets, such as cash. The factories, machinery and equipment owned by a business and used in production.

Capital is different from money. Money is used simply to purchase goods and services for consumption. Capital is more durable and is used to generate wealth through investment. Examples of capital include automobiles, patents, software and brand names. All of these things are inputs that can be used to create wealth. Besides being used in production, capital can be rented out for a monthly or annual fee to create wealth.

Equity—A stock or any other security representing an ownership interest.

Ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner’s equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company.

Expenses—The economic costs that a business incurs through its operations to earn revenue. In order to maximize profits, businesses must attempt to reduce exMoney in trashpenses without also cutting into revenues. Because expenses are such an important indicator of a business’s operations, there are specific accounting rules on expense recognition. / Money spent or costs incurred that are tax-deductible and reduce taxable income.

Expenses are the opposite of revenues. Examples of expenses include payments to suppliers, employee wages, factory leases and depreciation.

Financial Loss—Loss of money or decrease in financial value.

nonpayment, nonremittal, default—Loss resulting from failure of a debt to be paid

capital loss—The amount by which the purchase price of an asset exceeds the selling price; the loss is realized when the asset is sold (

Income—Money that an individual or business receives in exchange for providing a good or service or through investing capital.… In businesses, income can refer to a company’s remaining revenues after all expenses and taxes have been paid. In this case, it is also known as “earnings.” Most forms of income are subject to taxation.

Investment—An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price.

Liabilities—A company’s legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services

Net Worth—The amount by which assets exceed liabilities.

Profit—A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any profit that is gained goes to the business’s owners, who may or may not decide to spend it on the business.

Profit is the money a business makes after accounting for all the expenses.

Revenue—The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income.revenue

Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.

Revenue is also known as “REVs.”

Revenue is the amount of money that is brought into a company by its business activities.


Tax—An involuntary fee levied on corporations or individuals that is enforced by a level of government in order to finance government activities.

Five major types of business taxes are: (1) corporate franchise tax, (2) employment (withholding) tax, (3) excise tax, (4) gross-receipts tax, and (5) value added tax (VAT). Some types of firms (such as insurance, mining, and petroleum extraction companies) pay additional taxes peculiar to their industries. While firms too pay income, property, and sales taxes, such taxes are not specific to businesses.

(Read more:

That’s it. Now when you are shooting the breeze with a potential client or investor, you don’t have to nod and just smile.

Now you can speak up and talk money!

Let me know which term is the most useful to you and why. Post below.

With all the love my heart can hold…

8 Responses to “Money Words: Twelve Terms that Will Help You Talk Money Like a Pro!”

Comments List

  1. <a href='' rel='external nofollow' class='url'>Cezanne Poetess</a>

    I'm beginning to realize that numbers just aren't my thing. I allow money to just slip through my fingers. All those terms about money mean nothing to me, I am a brilliant artist, writer and performer, and I know it's the internal stuff that's preventing me from breaking out of my bad money management. I bought the Virtual Salon package but what I really need is one-to-one mentoring, can I be one of the 100 you choose please? I have lots to offer in return! Cezanne (Artist/Poet/Author)
    • Dr. Venus Opal Reese

      Hell Cezanne, You are an extraordinary talent and a remarkable human being. Shoot me an email specifying what you need mentoring in exactly, and I will look to see what I offer that might be a match for you. Dr. Venus
  2. <a href='' rel='external nofollow' class='url'>Rosanne Reid</a>

    These were just refreshers for me as I have been in the business world for 10 years now and I am also an Accountant. So the terms are fammiliar....thanks for sharing.
  3. <a href='' rel='external nofollow' class='url'>Wm</a>

    I see a lot of interesting articles on your blog. You have to spend a lot of time writing, i know how to save you a lot of work, there is a tool that creates readable, google friendly posts in couple of seconds, just search in google - k2 unlimited content
    • <a href='' rel='external nofollow' class='url'>Dr. Venus Opal Reese</a>

      Thanks Nicole. I will look into it!
  4. June

    Thank you so much for sharing. I was born into a Business-oriented family, so quite a few of the terms are familiar to me. But it is wonderful to still have people in this world like you who still have such a deep sense of concern and care for perfect strangers and doing so at no cost!! My hat's off to you Dr. Venus Opal Reese!! I can't wait to work with you. Also thanks for including me and inviting me to be a part of your upcoming Million Dollar Extravaganza for Black Women! Looking forward to it with great anticipation!
    • <a href='' rel='external nofollow' class='url'>Dr. Venus Opal Reese</a>

      Hi June!!! YOU are worth it! See you at BWM+ Virtual Salon! Dr. V

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