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Personal Finance
| Term | Definition |
|---|---|
| Budgeting sections | 50% needs, 30% wants, 20% savings |
| Cognitive Bias - Budgeting | when something influences a person's decision and judgement - irrational decisions |
| Money Habits - Budgeting (Inner) | strong feelings of autonomy --> confidence in financial transactions |
| Money Habits - Social | social relationships, family histories |
| Money Habits - Physical | desire for quality, spend more than others on self-care |
| Money Habits - Financial | sustainability of money |
| Paying For College - scholarships | grant or payment made to support a student's education, awarded on the basis of academic or other achievements |
| PC - savings | invest so money goes with inflation |
| PC - student loans | type of loan designed to help students pay for post-secondary education and associated fees |
| PC - grant | doesn't need to be repaid, scholarship |
| Credit def | the ability to borrow money or obtain goods/services with the promise to pay later |
| Credit management | managed through credit scores that reflect your financial responsibility |
| Insurance | purpose of insurance is to transfer risk |
| Deductible | flat fee person pays when a disaster happens |
| Premium | fee you pay monthly toward insurance coverage |
| Coverage limit | amount insurance will pay |
| Car insurance | more/less car is worth, the more/less you'll pay to insure it |
| car insurance miles | more you drive --> more insurance costs |
| car insurance age | young drivers pay more |
| Homeowners insurance | physical structure, detached structure, movable belongings, fire damage, personal liability |
| Renters insurance | covers damage to the building |