Glossary of terms

The profit you make when you sell an investment for more than you paid for it. If you buy a house for $300,000 and sell it for $320,000, your capital gain is $20,000. A capital loss is when you sell an investment for less than you paid for it.

When the value of your investment (your capital) grows. If you invested $100,000 in shares last year that are worth $110,000 this year, your capital growth is $10,000, or 10%.

A cash advance is when you withdraw money from your credit card account, usually through an ATM. Cash advances are an expensive option because you get charged interest from the day you withdraw the money.

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The money paid to a broker, financial adviser or planner, who sell products on behalf of a company. Commission can be based on the number and/or the value of the investments they sell.

Interest paid on interest. You earn compound interest if you have savings and don't spend the money you earn from interest. For example, if you save $100 at 3%, you'll earn $3 in the first year. You now have $103. In the next year, you earn 3% interest on your $103. The 3% you earn on the $3 you earned as interest last year is compound interest. Over the long term, compound interest makes your money grow much faster than the straight interest rate.