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Chapter 20

TermDefinition
consumer someone who buys a good or service
disposable income money income left after all taxes on it have been paid
discretionary income spending for federal programs that must receive annual approval
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 made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty
budget a plan for making and spending money
income money received from labor, business, or property
expense money spent on goods and services
credit money borrowed to pay for a good service
annual percentage rate annual cost of credit expressed as a percentage of the amount borrowed
collarteral property or valuable item serving as security for a loan
bankruptcy inability to pay debts
save to set aside income for a period of time so that it can be used later
interest the payment people receive when they lend money or allow someone else to use their money
principal the most important
return profit earned through investing
stock ownership share of a corporation
dividend payment of a portion of a company's earnings
bond contract to repay borrowed money with interest at a specific time in the future
mutual fund pools of money from many 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
Created by: autumnmclean
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