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Chapter 20 Vocab.
Term | Definition |
---|---|
Consumer | Someone who buys a product, good, or service |
Disposable Income | The money that reamins after all taxes on it have been paid |
Discretionary Income | The money remaining after praying for necessities |
Consumerism | A movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers |
Comparison Shopping | To get information the types and prices of products available from different stores or companies |
Warranty | The promise of a manufacturer or a seller to repair or replace a faulty product within a certain time period |
Budget | A careful record of all the money you earn and spend. |
Income | The money you earn |
Expense | The money you spend on everything, including what you choose to save. |
Credit | Borrowing money to pay fro something now while promising to repay it later |
Annual Percentage Rate | The annual cost of credit expressed as a percentage of the amount borrowed |
Collateral | Property, such as a house, car, or other valuable item, that a borrower pledges as security for a loan |
Bankruptcy | The inability to pay debts |
Save | 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 through investing |
Stock | Ownership share of a corporation |
Divident | Paying shareholders a portion of company earnings at regular intervals or periods, based on the number of shares people hold |
Bond | Lending money to a company or government |
Mutual Fund | Pools of money from people who are invested in a selection of individual stocks and bonds chosen by financial experts |
Impulse buying | Purchasing an item on the spot because of an emotional rather than planned decision |