Chapter 7-9 Flashcards
T or F: Learning to be quiet is actually a powerful tool in negotiation
True
T or F: Most of the items at a pawn shop are stolen
False
T or F: In certain circumstances, it is okay to stretch the truth to get a bargain
False
What is a win-win deal
Where the buyer and seller are satisfied
The first key to getting a huge bargain is learning to…
Negotiate
Proverbs 20:14
“It’s no good, it’s no good!” says the buyer, then goes off and boasts about the purchase
Matthew 5:33
Moses says keep your oaths, Jesus says “Let your “yes” be yes and your “no” be no.”
- Anything other than this comes from the evil one
What is the phrase to get a better deal
“It’s not good enough.”
What are the two tips for refunding
- Send in the application in on time
2. Follow the instructions carefully
Integrity
Having to do with a person’s honesty and moral attributes
Consignment Shop
Retail stores where people sell items and the owner of the shop gets a percentage of the sale
Walk-Away Power
The ability to walk away from a purchase when negotiating
Foreclosure
Process by which the holder of a mortgage sells the property of a homeowner who has not made interest and/or principal payments on time as stipulated in the mortgage contract
Auction
A public sale in which property or items of merchandise are sold to the highest bidder
Markup
The difference between the wholesale price and retail price
Estate Sale
Type of yard sale with more items, usually the entire contents of a household
Negotiate
To bargain for a lower price
T or F: Using cash gives you more bargaining power than using credit
True
What does being married to a purchase mean
You want it because you can’t live without it
T or F: With virtually all investments, as the risk goes up, so does the potential return
True
T or F: It’s okay to borrow money if you are going to invest it
False
What is the percentage of inflation in taxes
6%
What is a CD
Certificate of Deposit
What is a Certificate of Deposit
A savings account with a slightly higher interest rate because of a longer savings commitment
No more than ___ of your money should go in single stocks
10%
Bond
A debt instrument by which the company owes you money
What is the benefit of Roth IRA
It is funded after-tax money
After tax
You’ve already paid tax so you don’t have to pay tax
Annuity
A savings account sold by an insurance company
What is the least liquid consumer investment
Real estate
What are common employee benefits
Retirement plans, insurance, leave (vacation,sick,etc.)
401(k)
A retirement savings plan offered by a corporation to its employees
403(b)
Retirement savings that is found in non profit organizations
457
Available for government employees
Portfolio
A list of your investments
Liquidity
Quality of an asset that permits it to be converted quickly into cash without loss of value
Share
A piece of ownership in a company, mutual fund or other investment
Mutual Fund
Pool of money managed by an investment company and invested in multiple companies
IRA
Tax-deferred arrangement for individuals with earned income; individual retirement arrangement
Why wouldn’t a single stock be a good place to keep your emergency fund
It’s too risky
T or F: Diversification lowers risk with investing
True
When do you need life insurance
When other people depend on your income
Insurance
Protects your money
Investment
Makes you money
What is the purpose of insurance
Transfer risk
Gap Insurance
Covers the difference between what you owe on a car and what the insurance company says it is worth
How can a teen get a good deal on insurance
- Get good grades
2. Take a driver education class
What should your minimum auto insurance coverage be
$500,000
HSA
Health Savings Account
Copayment
An amount of money you pay to help cover a portion of your medical costs
You should not buy long-term care insurance until what age
60
Your coverage should be for ___ of your current income
65%
What is the purpose of life insurance
It replaces your income when you die
Premium
Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance
Deductible
Amount you must pay before you begin receiving any benefit from your insurance company
Liability
The state or quality of being obligated according to law or equity
T or F: Raising your deductible may be a good option when it comes to lowering your premium, but it is important to do a break-even analysis before making that decision
True
What is the phrase for life insurance
Buy term, invest the rest
