Cash

Definition: Cash can either refer to dollar bills or it can refer to when people aren't invested.  For example, if you have an investing account with $1000 in it but none of it is invested in stocks, it's called "being in cash", even though you don't have cash physically in your hands.

TeenAnalyst Advice: Having all your money in cash for a long period of time isn't a good idea because inflation will eat away at your buying power.  However, it's important to have access to some cash at all times for emergencies.If you're in college, you'll want to have cash readily available for your tuition payments.  And if you're nearing retirement, you'll want to have cash available for living expenses.