Financial Behaviors & Insuring
If you got into a car accident this would save you from paying for all of the damage yourself.
Auto-Insurance
Usually broken down into either weekly, bi-weekly, or monthly; this is used to track and manage spending usually made up of both fixed and variable expenses
A Budget
a bank account held at a financial institution used for managing daily transactions, allowing frequent deposits and withdrawals
Checking Account
upfront cash payment for a major purchase like a house or car, representing a portion of the total price. The rest of the purchase is then financed through a loan, which is repaid over time with interest
Down Payment
The degree of uncertainty and/or potential financial loss inherent in an investment decision
Risk
Refers to investors' tendency to follow and copy what other investors are doing.
Herd mentality
50% Off
BOGO (Buy one Get one)
2 for 5$
These are all examples of:
Promotional Pricing
is a charge from your bank when you spend more money than you have in your checking account, causing your balance to go negative, and the bank covers the transaction instead of rejecting it
Overdraft Protection
a three-digit number (typically 300-850) representing your creditworthiness, calculated from your credit report, showing lenders how likely you are to repay debts on time.
Credit Score
Partial ownership in a company, offering a claim on its earnings and assets. As the company's value rises or falls, so does it's value
A Stock
A contract between an individual or business with a company to help provide financial protection and mitigate the risks associated with certain situations or events.
Insurance
a notice or announcement in a public medium promoting a product, service, or event
Advertisement
Income Tax
When calculating cost for college you should only apply for student loans AFTER you have applied for these two other ways of helping pay for college:
Scholarships and Grants
Loans made to governments, government agencies, or corporations in exchange for a set interest rate payment.
An error in cognition that arises in a person's line of reasoning when making a decision is flawed by personal beliefs
Cognitive Bias
A legally enforceable agreement between a business and its users that define the rules for using a product, service, or website
Terms and Conditions
the general increase in prices for goods and services over time, meaning your money buys less than it used to, reducing its purchasing power.
Inflation
the yearly cost of borrowing money, expressed as a percentage
Interest Rate
Owning a wide variety of investments with different characteristics to reduce volatility
Portfolio Diversification / Diverse Portfolio
The amount you pay for covered health care services before your insurance plan starts to pay
Deductible
Short-term installment loans, often offered at checkout, that let consumers get goods or services immediately and pay for them in smaller, fixed payments over time, usually interest-free if paid on schedule, making purchases feel more affordable but carrying risks like overspending and late fees
Buy Now Pay Later
a government-run system that provides income through retirement, disability, or survivor benefits to eligible workers and their families. It is funded by payroll taxes paid by current workers, with future benefits based on an individual's earnings history
(Hint: it gets taken out of your paycheck automatically)
Social Security
is a valuable asset (like a house, car, stocks, or inventory) that a borrower pledges to a lender to secure a loan, acting as a guarantee; if the borrower defaults (fails to repay), the lender can seize and sell the collateral to recover their money
Collateral
An employer-sponsored retirement plan that comes with tax benefits.
401(k)