Chapter 7 Flashcards
the process of making choices that reflect goals by considering all of the pros and cons along with the costs
systematic decision making
being able to meet your financial goals through planned earning, spending, and saving
financial responsibility
failing to live up to your financial obligations to meet your goals and needs
failing to live up to your financial obligations to meet your goals and needs
an organized method for making good buying decisions
buying plan
standards or rules by which something is judged
criteria
the maximum amount you are willing to pay for an item
spending limit
a refund of part of the purchase price of an item
rebate
additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty period
extended warranty
the ability to borrow money and pay it back later
credit
money that must be repaid
debt
a plastic card linked to a credit account that can be used to make purchases
credit card
a credit account that allows you to charge items or services only at that store or with that merchant
store account
an account on which the account holder can charge repeatedly up to a maximum limit
revolving credit
a form of credit card for which the cardholder must pay the balance in full by the due date
charge card
a direct loan of cash made to a consumer at a fixed interest rate for a set period of time
consumer loan
credit used to finance the purchase of a single high-priced item through a series of equal payments made over a set period of time
installment credit
property that can be used as security for a loan
collateral
a preapproved loan amount that a debtor can borrow as needed with no collateral
line of credit
the ability to receive services and pay for them later
service credit
the total dollar amount of all interest and fees you pay for the use of credit
finance charge
the amount you are required to pay each month on a credit account
minimum payment
an interest rate that is set and does not change from month to month
fixed interest rate
the amount of time you have to pay your current credit card balance in full to avoid paying interest
grace period
the period of time between credit card billings
billing cycle
an interest rate that goes up and down with inflation and other economic conditions
variable interest rate
moving a balance from one credit card account to another
balance transfer
money borrowed against your credit card account
cash advance
a fee charged for violating a term of the credit agreement
penalty
