Behavorial
Define "Utility"
How well something satisfies a person's wants or needs
Define "Diminishing Marginal Utility"
The more of an item you aquire, the less useful or enjoyable it becomes
Define "Credit"
What is the ability to borrow money or access goods or services with the understanding that you'll pay later
Why do most people need a mortgage to buy a home?
A mortgage is essentially a housing loan
List 3 ways you could DECREASE the total amount of money you pay for your mortgage.
Make extra payments, make greater payments, decrease the loan term.
Define "Underserved"
Lacking access to the traditional financing
Why is a credit score important?
It provides a frame of reference for how likely someone is to be able to pay off debt
Why is it important to haggle when negotiating to buy a car?
Because the salesperson might give you a bad deal
Identify 2 factors that affect the total amount of money you pay for a mortgage.
Interest rate and down payment
Why is the total cost a borrower pays for their home typically so much higher than the sale price of the house?
Interest accumulated over the loan term increases the final cost
What percent of US households live paycheck-to-paycheck?
50%
How do people’s personal values and experiences affect how they make financial decisions?
They make them consider different options
Why should you never tell a salesperson the maximum amount you can afford per month?
They will abuse that knowledge
What is the difference between a fixed- and adjustable-rate mortgage?
Adjustable-rate mortgages are prone to change
What percent of 18-29 year olds are living with their parents?
52%
How can Facebook or Instagram make you poorer?
You're more likely to make impulse purchases on a social media sit with an app-store
Define what a social media influencer does.
Influence what people buy
What other costs of ownership do you need to factor in when thinking about your vehicle costs?
Gas and Insurance
Define "Cost of Living"
The amount of money that goes towards base necessities, i.e. food, water, housing, etc
What budgeting categories are typically included in cost of living calculations?
Food, housing, transport, energy, healthcare and taxes
Why are brands drifting away from celebrities and supermodels for advertisements and instead leaning on influencers to help advertise their products?
Influencers are considered to be more relatable than celebritiesInfluencers are considered to be more relatable that celebrities
What percent of Instagram users reported making purchasing decisions based on something they saw on the app?
51%
How does financing from a bank or credit union differ from financing from a dealership?
Pay in cash
Buying a home achieves which two financial goals at the same time?
Providing a place to live and investing for the future
How much money should you put toward your home's down payment?
20% of the price of the home