click below
click below
Normal Size Small Size show me how
Personal Finace
Chapter 20
| Term | Definition |
|---|---|
| consumer | someone who buys a good or service |
| disposable income | money income left after all taxes on it have been paid |
| discretionary income | money income left after necessities have been bought and paid for |
| consumerism | a movement to educate buyers about the purchases they make and to demand better and safer products from manufactures |
| comparison shopping | buying strategy to get best but 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 or service |
| annual percentage rate (APR) | annual cost os credit expressed as a percentage of the amount borrowerd |
| collateral | 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 |
| pricipal | 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 furture |
| 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 |