Do you speak finance? The acronyms you should know.

You’ve set a goal to increase your financial knowledge, but the alphabet soup of terms (APR, IRA, ROI) has your mind spinning. Don’t worry. The shorthand used in the financial world may seem like another language at first, but it’s pretty easy to pick up. Once you understand the terms, this can help you to make smarter financial decisions. Here are some common acronyms and what they mean for your financial decision-making.

401(k): A 401(k) is a company sponsored retirement account that allows employees to save for retirement by contributing a percentage of their income. Employers may offer matching contributions.

403(b): Similar to a 401(k), a 403(b) is a retirement account that allows employees to save for retirement by contributing a percentage of their income. The difference is that 403(b)s are typically for employees of tax-exempt organizations like public schools and nonprofits.

AGI: Adjusted gross income is an abbreviation you likely see every year during tax season. It’s a number that the Internal Revenue Service (IRS) uses to determine how much income tax you owe. AGI is calculated by taking your total (or gross) income for the year and deducting certain items, like educator expenses, student loan interest, alimony payments, and self-employment taxes.

APR: Comparing lenders for a mortgage or car loan? Pay more attention to the annual percentage rate (APR) than the interest rate. APR shows you interest plus fees and other charges, which can add up.

CAGR: Compound annual growth rate is the rate of return you’ll get on an investment because of compounding or reinvesting the profits over the lifespan of the investment. Think of compounding as a wealth-building tool. Imagine a small snowball rolling down a steep hill. The longer it rolls, the more snow it will accumulate. Your original investment (the snowball) becomes a snow-roller by accumulating earnings on top of earnings over time.

CPI: The Consumer Price Index is a measure of inflation. It measures the monthly change in prices paid by US consumers for goods and services.

ETF: An exchange-traded fund is an investment vehicle that pools a group of assets into one fund. It can be bought and sold on an exchange like an individual stock.

FDIC: The Federal Deposit Insurance Corporation is an independent US government agency that insures bank deposits and examines financial institutions for safety and soundness. When you deposit money in a savings or checking account, FDIC insures that money against loss due to bank failure up to $250,000.

FICO: You probably recognize FICO, short for Fair Isaac Corporation, if you’ve ever taken out a loan or opened a bank account. Lenders use FICO’s predictive analytics to calculate your creditworthiness, most commonly represented as your credit score.

HNWI: A high net worth individual — what many of us aspire to be — is someone with over $1 million in liquid financial assets.

HSA: A health savings account are special savings accounts offered by many employers. They allow you to deposit money from your paycheck and withdraw that money tax-free for medical expenses. Unspent HSA funds roll over from year to year and the funds can be invested, potentially growing the funds to help you cover future health care costs.

IPO: An initial public offering is the first time a private company sells shares of its stock to the public. This event allows the company to raise capital and signifies that the company has gone from private to public ownership.

IRA: Individual retirement accounts are a popular way to save for retirement. It’s likely that Social Security alone won’t net you enough income to live on in retirement — an IRA provides a way to save additional money.

LLC: A limited liability corporation is a common type of corporate structure that protects its owners from certain types of liabilities, like debts. LLCs also allow profits and losses to get passed through to their owners’ personal income without paying corporate income tax.

RMD: A required minimum distribution is the minimum amount of money you have to withdraw annually from some retirement accounts beginning the year you turn 73. If this amount is not withdrawn, you could face a tax penalty.

ROI: Return on investment measures the profitability or benefit earned on money you’ve invested.

TCO: Total cost of ownership shines a light on the full costs of owning an asset. Whether it’s a car or a house, the price tag is just the tip of the iceberg. Make sure you identify all costs for maintenance, upkeep, service, and so on, so you can budget accordingly. If you need help understanding any of these acronyms or have any questions about your financial situation, reach out to a financial professional.