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Chapter 20

TermDefinition
consumer someone who buys a good or service
disposable income money income left after all taxes o 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 ruler of the market,determining what products will be produced
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 or service
annual percentage rate annual cost of credit expressed as a percentage of the amount borrowed
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
principal the most important
return profit earned through investing
stock ownership share of a corporation
dividend payment of a portion of a company 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 section 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: taliahvargas
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