The Billfold ABCs: A is for AMORTIZE

by Deb Weiss and Charrow

The Billfold ABCs is a new feature that translates financial language into understandable concepts. Using real life examples alongside definitions and illustrations, Billfold ABCs explains the words that we associate with money.

Words understood and interpreted by non-official money thinker Deb Weiss and actual professional illustrator Charrow.

A is for AMORTIZE

Definition: to spread out the cost of something over multiple periods. This can mean paying off debt in installments over time or accounting for the cost of an asset over the useful life of that asset. In accounting, this is usually an intangible asset.

Real life example: sure, one expensive haircut may cost $600, but if you think about it on a monthly cost basis, it’s just a latte a day. Right, Suze Orman?

What other financial words have you scratching your head? Leave suggestions for the Billfold ABCs in the comments!

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