Unit 1
A number documenting the likelihood that you will repay your debts
Credit Score
Long term financial planning involves saving for things like...
College, home-ownership, retirement, etc.
The pay you receive AFTER taxes, FICA, and Social Security get taken out.
Net pay
Spending money on things that you neither want nor need, but that you want people to SEE you with
Conspicuous consumption
The value of the second best option, which you chose to give up
Opportunity Cost
The amount you must pay towards your own healthcare costs before your insurance kicks in and helps
Deductible
The 4th factor of production: AKA businesspeople
Entrepreneurs
The part of a car's dashboard that tells you how many miles the car has been driven
Odometer
The maximum amount you can spend in a month with your credit card
Credit limit
An auto insurance coverage meant to help you if you get hurt during an accident
Personal injury protection
The two kinds of capital resources
Physical capital
Human capital
Life insurance that only covers you for a certain number of years (ex. 30 years)
Term Life Insurance
When a person declares Chapter 7 bankruptcy (liquidation), that appears on their credit report for how long?
10 years
An add-on to renter's insurance to cover very expensive items, like electronics and jewelry
Personal property floater
Oil is an example of what kind of resource?
Natural resource
Interest that is charged on the principal only
Simple interest
A loan in which NO collateral is offered
Unsecured loan
When buying a home, you will first have to put a certain amount down up front, usually 5-20% of the value of the property.
Down payment
A person's knowledge, skills, education, etc. that make them qualified for certain jobs
Human Resources
Human Capital
Equity