← Glossary/Finance
Return
The gain or loss from an investment over a stated period.
Example
Noor starts with $100 and has $108 one year later. The return for that year is an $8 gain before checking which fees are included.
How it fits in
Return can be positive or negative. State the starting amount, ending amount, dates, income and fees included before comparing results. A possible future return is uncertain, while a realised return describes what happened. Compare the range of possible returns with the goal, time horizon, access needs and consequences of a loss.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.