Torgob24the family budget in plain words: a reference guide

An independent reference guide to the family budget. It is not financial or investment advice, not a bank or a government body, and has no connection to the former website on this domain.

Terms

Terms

Conversations about money and bank documents are full of words rarely heard in everyday speech. That makes it easy to agree to a term whose meaning was never clear. This glossary explains the key concepts so that you can recognise them in an agreement or a news story and understand how they affect your budget.

If nobody can explain a financial term to you in plain words, that is a reason not to agree until the meaning is clear.

— Editor's note

The definitions are simplified and meant as a guide. The exact meaning of a term in your agreement is set by its terms and by law, so if in doubt reread the document and ask the provider in writing. Definitions that mention laws and institutions refer to Russia; rules differ in other countries, so check your own country's official sources.

Budget

Income
All the money that comes into the family over a period: earnings, benefits, pensions, interest, one-off payments. For planning it is easier to rely on the regular part of income.
Fixed expenses
Spending the family cannot live normally without, or cannot skip without consequences: housing, food, phone, transport, healthcare, debt repayments.
Variable expenses
Spending whose size you choose yourself: entertainment, cafés, clothes beyond what you need, hobbies. These are the easiest to cut when the budget needs tightening.
Emergency fund
A reserve of money for unexpected events: illness, job loss, urgent repairs. It is usually measured in months of fixed expenses and kept separate from money for everyday spending.
Financial goal
A specific purchase or event the family is saving for, with a clear amount and deadline. A goal helps you work out the monthly contribution and avoid spending savings by accident.
Tracking
Regularly recording income and spending by category. Tracking does not limit spending by itself, but it shows the real picture and gives you a basis for decisions.

Loans and deposits

Full cost of a loan
A figure that includes not only interest but also other payments linked to the loan. In Russia, under Article 6 of Russian Federal Law No. 353-FZ, it is shown as the “PSK” in a square box in the top right corner of the first page of a consumer loan agreement.
Payment schedule
A table with the dates and amounts of all loan payments. It shows how much of each payment goes to repaying the debt and how much to interest.
Early repayment
Paying back a loan in full or in part before the scheduled date. After a partial repayment, usually either the payment amount or the loan term goes down; the procedure is set out in the agreement.
Deposit
Money placed with a bank under an agreement, for a fixed term or on demand, with interest paid on it. Deposits differ in their terms for withdrawals and top-ups.
Deposit insurance
In Russia, a system under which individuals' deposits in member banks are insured by the Deposit Insurance Agency. Under Law No. 177-FZ the general limit is 1.4 million roubles per bank, with special rules for some cases.
Compound interest
A deposit term under which earned interest is added to the deposit, so later interest is calculated on the larger amount. The agreement states whether interest is compounded.

Economy

Inflation
A general rise in prices that means money buys less over time. In Russia, the Bank of Russia aims to keep inflation at about 4% a year.
Key rate
The Bank of Russia's main monetary policy tool. Changes to it feed through to the terms of loans and deposits over time, which is why both banks and borrowers watch it.
Pyramid scheme
A scheme in which earlier members are paid out of newcomers' contributions rather than from any real activity. Sooner or later the flow of new money dries up, and most members lose what they put in.
Diversification
The principle of not keeping all your savings in one place or one form, so that a setback with one of them does not wipe out the whole reserve. It is a general principle, not a recommendation of specific investments.
  • Basics

    The parts that make up a household budget: income, fixed and variable spending, savings, debts and goals, plus inflation explained without formulas.

  • Documents

    What to read in a loan agreement, deposit agreement, payment schedule and statement; where to find the full cost of a loan and how deposit insurance works in Russia.

  • FAQ

    Short answers to common questions about tracking spending, planning, loans, deposits and talking about money in the family.

Sources

  • Russian Federal Law No. 353-FZ “On Consumer Credit (Loans)”
  • Russian Federal Law No. 177-FZ “On Insurance of Deposits in Banks of the Russian Federation”
  • Bank of Russia materials on monetary policy

These materials are based on Russian federal laws and public materials from the Bank of Russia. Rules and the terms of financial products change, and they differ from country to country, so before any important decision check your own country's official sources and the text of your own agreement.