Chapter Nine
a legally enforceable declaration of how a person wishes his or her property will be distributed after death
will
A person who is picky about budgeting and details
Nerd
tax paid out by anyone who earns an income
income tax
organization that use money raised to achieve their goals rather than distributing them as profit
nonprofits
an item is bought without previous planning or consideration of the long-term effects
impulse buy
the amount you must pay before you begin receiving any benefits from your insurance company
deductible
a situation in which a person is lacking time, which leads to stress
time poverty
tax on goods and services that goes to your state or local government
sales tax
anything handed down from the past; something that someone has achieved that continues to exist after they are gone
legacy
interest paid on interest previously earned
compound interest
a life insurance policy that covers a specific period of time is called
term
when it comes to communicating with others about money, you should not:
manipulate
sales tax and excise tax are both taxes on
consumption
traits or qualities that represent an individual’s highest priorities, deeply held beliefs and motivating forces
core values
retail store where people sell items and the owner of the shop gets a percentage of the sale
consignment shop
the recipient of assets passed on from the death of a friend or relative
beneficiary
a person who thinks everything will work out fine and typically hates to deal with the details
free spirit
a federal insurance program funded by taxpayer dollars that provides benefits to people who are retired
social security
means “love of humanity”; identifying and exercising one’s values in giving and volunteering
philanthropy
cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan
annual percentage rate
pays off your home mortgage if you die or become disabled
mortgage life insurance
a person’s priorities, beliefs and standards that affect how he or she views the world
value system
income generated by selling a investment at a higher price than you paid for it
portfolio income
what percentage of households give to charity
65%
Latin term for "buyer beware"
caveat emptor