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Where this idea comes from· Pacioli 1494

The book that stays put

In 1494 the Italian mathematician Luca Pacioli printed the first published account of double-entry bookkeeping: every amount written twice, once where it came from and once where it went, so the two sides always balance.

One thing to hold: A blank two-column page: money in on one side, money out on the other.

Why it matters: Writing everything down twice makes a mistake show up. The same habit helps with a first budget.

Three words:

  • Ledger Once a big book that lay in one place. What would you write in yours this week? (Merriam-Webster, "ledger")
  • Amortise From the old French amortir, "to deaden": to kill a debt off bit by bit. How many payments would yours take? (Merriam-Webster, "amortize")
  • Credit From the Latin credere, "to believe": a lender believes you will pay. What makes someone believe you? (Merriam-Webster, "credit")

Sources: Luca Pacioli, Summa de arithmetica (Venice, 1494) · Merriam-Webster, "ledger", "amortize", "credit"