Econ Flashcards
Deep debt accepted as the norm.
Debt culture
Funds running out
Social security act 1935
Unprepared for retirement.
Baby boomers
Baby step #3.
Build wealth
Safe, long term investing.
Mutual fund
Income designated is often matched by employer.
401 K
$1,000
Emergency fund
Self control gives us our goals.
Sacrifice to win
Just like money: can build or destroy.
Brick
Emergency, purchases, wealth building.
Reasons to save
Preparation for wealth building.
Baby steps
Available cash
Liquid
High interest savings account.
Money market
Has a fee for depositing money.
Certificate of deposit
Pledged as security for repayment of a loan, to be forfeited in the event of a default.
Collateral
Opposite of debt culture, save until you can purchase.
Fund approach
Has greater influence when paying with cash.
Haggle
Number assigned to a person that indicates to lenders their capacity to repay a loan.
Credit score.
Investment opportunity with publicly held corporations.
Stock market
Interest added to the deposit so that the interest also earns interest.
Compound interest
Not necessary.
Credit cards
Adults who return to live with their parents due to debt.
Boomerang kids
The benefit of a given situation are analyzed as associated with the sum needed.
Cost analysis
Blesses or wrecks the relationship.
Relatives and money
Either self esteem or safety.
Money and gender patterns
College + family, work, church, volunteerism, friends.
Time poverty
Rationalized due to being overworked.
Impulse buying
Deficit in a bank account caused by drawing more money than the account holds.
Over draft
Usually older with money management skills, gives objective advise.
Accountability partner
Repayment schedule may be differed while the student is still in school.
Student loan debt
Monthly debt divided by your gross monthly income.
Debt to income ratio
Legal obligation made by this person to make payment in event of default.
Co-signer
Details persons financial history specific to their ability to repay borrowed money.
Credit report
Company that collects information related to individuals payment practices.
Credit bureau
Limits the behavior or actions of those attempting to obtain a payment.
Fair debt/collections laws
Is a legal binding contract for a specific period of time.
Lease (apartment)
Often displayed by drama addicts and poor planning.
Management by crisis
Cash taken from an individuals account every month.
Auto payments
Fundamental change in approach or underlying assumptions.
Paradigm shift
A range of investments held by a person.
Portfolio
The most expensive version of financing.
Lease (car)
Oversized amount due at the end of a mortgage or commercial loan.
Balloon payment
Drops in 18%-28% in the first year.
Brand new car
The difference between current market value and what is owed.
Equity
The combination of several loans into a new loan and paying more interest.
Debt consolidation
Biggest wealth builder- money received regularly through work of investments.
Income
Main goals are to protect consumers and ensure a competitive market.
Federal trade commission
Wrongful or criminal deception intended to result in financial or personal gain.
Fraud
Allows others into your financial accounts.
Electronic access
Buyer alone is responsible for checking the quality of goods before a purchase is made.
Caveat emptor
Taking control over your impulse buying through various tactics.
Power over purchase
Research best quality at best price before a large purchase.
Due diligence
Loss of potential gain from other alternatives when one alternative is chosen.
Opportunity cost
Over $1,000, house, car, vacation, reception, furniture….
Major purchase
Arrangement by witch a company guarantees compensation for specified loss in return for payment.
Insurance
Being responsible by law.
Liability
The cost of insurance.
Premium
Specific amount of money that the insured must pay before an insurance company will pay on their claims.
Deductible
Minimum auto insurance coverage required by law.
PLPD
Beneficiary payment, especially for health services, in addition to that made by an insurer.
Co-pay
Bought more cheaply than is usual or expected.
Bargain
Tactic of bargaining and power over purchase.
Walk away
Public sale in which goods or property are sold to the highest bidder.
Auction
Liquidation of the belongings of someone who has passed away.
Estate sale
Futures contract with no sale rights or dividends.
Single stock
Invested loans money to an entity.
Bonds
Insurance company investment designed to grow funds.
Annuity
Payments regularly paid by a company to its shareholders.
Dividends
In charge of accounting.
CFO
In charge of management and growth.
CEO
Individual who has purchased shares from a corporation.
Stockholders
Measure of profit as related to the possibility of loss of the investment.
Risk return ratio
Person who organizes, creates and operates a business.
Entrepreneur
Usually requires quiet deliberative thought.
Creative process
Events by chance in a happy or beneficial way.
Serendipity
Conduct of profit solely through the internet.
E-business
Knowledge of dealing with applied sciences especially in industry.
Technology
Governmental system that often slows or impedes progress.
Bureaucracy
Efforts of two or more parties acting independently to secure the same goal.
Competition
Scientific, technical, medical training is sold.
Information business
Old form of management: status given to those with experience.
Hierarchy
Activities followed by a firm to deliver their product or service to the market.
Value chain
Goods or services obtained by an external supplier.
Outsource
Specializes in fulfilling a service on behalf of the product/company owner.
Fulfillment
Bridge between an idea and a business plan.
Business concept
The act of supplying goods to the consumer.
Distribution
Process of investigating the big picture of a specific industry for a niche.
Feasibility
A great concept that presents a business idea as utmost importance.
Executive summary
Proof of plausible financial growth through instating specific steps.
Development plan
Usually a 1-3-5 year statement of profit application and expected growth.
Financial plan
Graphic representation of obtaining goals from both the developmental and financial plans.
Timeline
A change or process of change which allows profit to be better suited to the business environment.
Adaptation
Ability to exert influence over another.
Bargaining power
Ability to exert influence over another.
Bargaining power
Creating a unique name and image for a product.
Branding
Concentrating all marketing efforts on a small but specifically defined segment of an industry.
Niche
Planned investigation aimed at knowledge of a company or it’s products.
Industry research
General direction in which something is developing of changing.
Trends
Method of leadership used.
Management style
Behavior of humans within an organization toward producing employee satisfaction.
Business culture
Agency that regulates the securities market.
US securities and exchange commission
Presidential cabinet sector that promotes job and business creation.
US department of commerce
Point of reference against which things may be compared or assessed.
Benchmarks
Statistical data relating to particular groups.
Demographics
Consumers desire and willingness to pay a price for a specific good or service.
Demand
A tool used to provide insights into the market success of a new product.
Test market
Funds needed to launch a start up business.
Capital requirements
Summary of the aims and values of a company.
Mission statement
Article, substance, or service manufactured or offered for sale.
Product
The goal of increasing sales and achieving a competitive advantage.
Marketing strategy
Structure detailed as it relates to use of funds received to start a new business.
Loan fund dispersal
Summing up prior experience in business.
Resume
Recommendation provided by a business associated.
Reference
Irresponsible spending, pretending to be rich.
Visa gold card mentality
