A primer on financial lingo for millennial movers

Moving involves some big financial decisions, both before and after (especially if you want to borrow). To help you start planning, we’ll look at some basic financial terminology for those who may not have a good grounding in these concepts.

Time value of money

The time value of money is the idea that money on hand today is worth more than the same amount of money in the future; because the money you have today could be invested and increase in value.

Why is this important to relocators? Understanding that money today is worth more than the same amount in the future can help you evaluate investments in property, equity, pensions and more when you move to a new, unfamiliar country. Informing you about future decisions you may face at home or in the workforce.


Being familiar with inflation will help make things clearer several things clearer before you move. Inflation reflects any overall upward moment in the price of consumer goods and services and in most cases, meaning you lose what’s called purchasing power over time.

This is important for you to know because inflation generally pushes the cost of goods and services higher. Some countries have chronically high inflation rates, others may have lower inflation but be more historically “exposed” to fluctuations over time. You’ll need to bear this in mind when moving.

Compound interest

If you plan to borrow to finance your relocation, understanding this is crucial. Compound interest is interest on the amount of money you have deposited or borrowed. When you’re borrowing, compound interest is charged on the original amount you were loaned, as well as the interest charges that are added to your outstanding balance over time.

FICO Score

This is a score that rates your creditworthiness on a scale of 300 to 850. Banks look at how much you have handled payments in the past, how long you’ve been managing your finances, how well (or how badly) you’ve coped with commitments during that time, and how much you owe in total. If you have a low FICO score, you may not be able to get good options on a loan. In the U.S., creditworthiness is a very important metric. If you’ve never held a credit card before it could prove very hard to borrow money following a move.

Understanding this vocabulary should be a no-brainer before you move. As mentioned, it’s not necessary to be an expert, but knowing some of the more commonly used terms means you’ll be better prepared when it comes to any financial decisions related to your move.


Looking for some advice about what to do financially when you’re moving overseas, get in touch with us.