Modern Money Dictionary: What HENRY, SNAP and 20 Other Terms You Should Know Mean.

According to The Sun: Let's take a deep breath...

You live in a HUG house, you are a MASH, and you have NSD once a week. You also have a side job, as all your money goes to BREAD, and you feel guilty about your habit of SNAP.

GettyFinding it hard to understand financial jargon? Check out our guide!

During your JABS, you think about becoming a money-hacking wizard, trying to increase your income and save for Christmas.

Confused? You are not alone. Considering the popularity of terms and abbreviations on social media — some of which have even made it into dictionaries — it’s hard to keep up with the changes.

But understanding these terms is crucial. About 47% of Brits have such low financial literacy that it costs us £1.3 billion a year through missed fees and payments.

Don't panic! This week, Allie Einstein presents an essential guide to financial jargon. How many terms do YOU know?

Characteristic Jargon A-M

AlamyALICE - refers to families with very limited income.

ALICE: Limited Assets, Limited Income, Employed. People who are working but their income is spent on household bills and they have no significant savings. According to the Joseph Rowntree Foundation, over 7 million Brits, including 2.6 million children, live in poverty despite being working families.

BALL: Basic assistance lost due to living expenses. Refers to the shortfall between the amount households receive in government benefits and the amount they spend on necessary bills.

BREAD: Bills, rent, energy, and debts. A term used by self-employed individuals. The formula for determining the amount that needs to be earned to cover essential expenses.

GettyLove BREAD? Think again — it means bills, rent, energy, and debts.

DINK: Dual income, no kids. Couples who do not yet have children and have more disposable income. They are often blamed for spending money on various pleasures, but many choose not to have children or to delay that stage due to the costs of raising children.

FAT: Financially at risk. Indicates households that are on the brink of poverty — an estimated 14.3 million, according to DWP.

HENRY: High earner, yet not rich. Individuals with high income but facing financial difficulties due to the UK tax system and high costs of maintaining their lifestyle. It is estimated that there could be up to 3 million HENRYs, according to YouGov.

GettyThis is not the HENRY you think of… HENRY means high income, yet not rich.

HUG house: multigenerational homes. A new trend where grandparents, parents, and children live under one roof to save on sharing rents, mortgages, energy bills, and child-care costs.

JABS: Juggling multiple bills simultaneously. Refers to households facing numerous expenses like care bills and mortgages. Many maintain a budget with payment dates to keep track of their spending.

MAD: Mothers Against Debt. Among mothers living on the brink of poverty, many accumulate debt. According to Gingerbread and ONS, around 2 million households led by mothers have debt.

MASH: Middle-aged youth living at home. The share of individuals aged 25-34 still living with their parents has increased by more than a third over the last 20 years, according to the Institute for Fiscal Studies. Many choose to live at home to avoid the high costs of separate living.

Moonlighter: a person with a second job, working night shifts to boost their base income.

… and crazy terms N-Z

Nester: a person working on side projects from home. This can be anything from a small business like baking cakes for sale to dog care in their home.

NSD: No Spend Day. A classic savings method where you buy nothing for an entire day, typically once a week.

GettySAD - stuck after debts — how many more terms do you know?

SAD: Stuck After Debt. Refers to those who have already settled their debts but still have trouble obtaining credit, such as mortgages, due to their credit history.

SALE: Stocks for future expenses. Refers to people who buy Christmas or birthday gifts in advance during sales, as well as shoppers who buy staples during promotions.

SHINER: Side hustlers who constantly invest, increasing their income to retire early. The number of workers choosing to move away from a 9 to 5 schedule to engage in side projects to create multiple income streams and accumulate wealth is rising. Many plan to cut their work hours or retire at 40.

SILK: Single income, many children. In Ukraine, according to the Office of National Statistics, around 1.2 million households consist of one mother and three or more children.

SLOG: Self-employed living on their efforts. Refers to a self-employment culture trying to make ends meet, given that the average income for the self-employed is £23k, compared to £36k for those in corporate employment.

SNAP: Spend today, worry tomorrow. Refers to those who spend on luxuries even knowing they can’t afford it.

Squiggly career: a type of work where you can easily switch between different roles or sectors as these roles do not require a degree.

SWIPE: Salary spending on pharmacies. Those who spend a significant portion of their salary on weight-loss medications, such as Ozempic and Wegovy. An estimated 1.5 million people in the UK are thought to use these drugs.

WOLFF: Wealthy living modestly. Refers to middle-class households complaining about financial instability due to rising costs and those who do not receive government assistance, such as child benefit, because they earn too much.

GettyNo, we're not talking about wolves… it's about the well-off living modestly.

Zombie debt: old debt that has been sold to a collector. They are not the same as debt collectors and have no right to come to your home or take your belongings.

The modern financial world is filled with various terms and new concepts that many people may perceive as a challenge. Understanding these terms is the first step to improving financial literacy and ultimately to better budget management. It can help you improve your financial situation and prepare for future expenses.

At a time when prices for essentials are steadily rising, being armed with knowledge about financial jargon becomes even more important. This can give you the ability to better control expenses and make thoughtful financial decisions.