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Risk
The chance that a money choice will not provide what you need when you need it.
Example
Ari needs $520 for a course next year. An investment might reach $560, but it might fall to $430. The risk is missing the amount Ari needs on time.
How it fits in
Investment risk is not only a price moving up and down. Money can be lost permanently, become hard to access, lose buying power, or fall short of a goal. Start with the amount and date needed, then ask what could go wrong and what the consequence would be. A larger possible return does not guarantee payment for taking more risk.
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.