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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 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 or service |
Annual Percentage Rate (APR) | 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 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 |