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civics chapter 20
| Term | Definition |
|---|---|
| consumer | someone who buys a product or service |
| disposable income | is the money that remains after all taxes on it have been paid |
| discretionary income | the money remaining after paying for necessities |
| consumerism | a movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers |
| comparison shopping | buying strategy to get best buy for the money |
| warranty | the promise of a manufacturer or a seller to repair or replace a faulty product within a certain time period. |
| budget | the best way to get a handle on your spending is to make a budget |
| income | money that you earn |
| expense | the money you spend on everything, including what you choose to save. |
| credit | borrowing money to pay for something now while promising to repay it better |
| annual percentage rate (APR) | the annual cost of credit expresses as a percentage of the amount borrowed |
| collateral | is property such as a house, a car, or other valuable item, that a borrower pledges as security for a loan. |
| bankruptcy | the inability to pay debts. |
| save | means to set aside income for a time so you have it to use later. |
| interest | the payment people receive when they lend money, or allow someone else to use their money |
| principal | the amount you initially deposited |
| return | profit earned by the investor, is usually low. |
| stock | you are buying partial ownership in a company |
| dividend | can substantially increase your profit from owning stock. |
| bond | lending money to a company or government |
| mutual fund | many investors find it easier to invest in stocks and bonds |
| impulse buying | buying things to feel better |