Chapter Nine
the amount of money paid for an insurance policy
premium
the amount you earn before taxes and other payroll deductions
the average cost of the basic goods and services needed to sustain a certain standard of living
cost of living
the process of setting money aside to increase wealth over time for long-term financial goals such as retirement
investing
The study of the big economic picture through various economic indicators.
Macroeconomics
an item is bought without previous planning or consideration of the long-term effects
impulse buy
the amount you must pay out of pocket before your insurance company will make a payment.
deductible
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay
net income
when someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals
an asset that can be easily bought or sold
liquid asset
the persistent rise in the cost of goods and services over time.
Inflation
interest paid on interest previously earned
compound interest
protection for damages to your car resulting from a collision with another car
collision insurance
money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor Wealth Tax: a tax based on the market
wage
periodic payments (usually monthly) by a tenant to a landlord in return for the use of a property
renting
a security that represents part ownership or equity in a company
stock
Resources, materials, and goods a country produces and sells to another country.
Exports
Name the Second Foundation
get out and stay out of debt.
people who are designated by the policyholder to receive the death benefit of a life insurance policy
beneficiaries
a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly Sales Tax: a tax o
a mortgage with a set interest rate for a set number of years
fixed-rate mortgage
a list of your investments
portfolio
Economic and political theory promoting collective or government ownership and control of the means of production.
What is Socialism
cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan
annual percentage rate
a person who relies on someone for financial support
dependent
tax paid out by anyone who earns an income
income tax
things that help provide convenience, comfort, or enjoyment
amenities
a qualified retirement savings plan offered by a company to its employees who contribute money from their gross pay
401K
Capitalism
Name the Fourth Foundation
Pay cash for college