I wanted to (finally) give you a money dictionary that doesn’t require a dictionary to understand the word’s definition. That doesn’t exist . . . so I made my own. You know how you explain a term to a friend who doesn’t “get” it? That’s the way it’s written here. Let this glossary be your go-to guide for definitions with a practical perspective whenever you need a little cheat-sheet. Some stuff changes over the years, but these basics never go out of style.
Joint Account -
Joint Account: If you’re looking to pool your finances with a significant other or business partner, a joint account is what you will need. You can get a joint checking or savings account through a bank, or a joint brokerage account through an investment company. It goes without saying that you should trust the person with whom you’re sharing a joint account, since you’ll both have access to the money.
Joint Venture -
When two or more parties join forces to achieve a particular goal, or when two existing businesses contribute equity toward a new business.
Like “going halfsies” in the business world. If you go into a joint venture with a friend or other individual, what you’re forming is called a general partnership. Just know that in this case, if your partner makes a bad financial decision, you’ll be on the hook just as much as she is.