Economics Flashcards
Debt culture
Deep debt accepted as the norm
VISA Gold card mentality
Irresponsible spending, pretending to be rich
Social security act of 1935
Funds running out
Baby boomers
Unprepared for retirement
Build Wealth
Baby step #3
Mutual fund
Safe, long term investing
401k
Income designated is often matched by employer
Emergency fund
1000$
Sacrifice to win
Self control gives us goals
Brick
Just like money, can build or destroy
Reasons to save
Emergency, purchases, wealth building
Liquid
Available cash
Money market
High interest savings account
Certificate of deposit
Has a fee for depositing money
Collateral
Pledged as security for repayment of a loan, to be fortified in the event of a default
Fund approach
Opposite of debt culture, save until you can purchase
Haggle
Has greater influence when paying with cash
Credit score
Number assigned to a person that indicates to lenders their capacity to repay a loan
Stock market
Investment Oppurtunity with publicly held corporations
Compound interest
Interest added to the deposit so that the interest also earns interest
Credit cards
Not necessary
Boomerang kids
Adults who return to live with their parents due to debt
Cost analysis
The benefits of a given situation are analyzed as associates with the sum needed
Relatives and money
Blesses or wrecks the relationship
Money and gender patterns
Either self esteem or safety
Time poverty
College family, work, church, volunteerism, friends
Impulse buying
Rationalized due to being overworked
Overdraft
Deficit in a bank account caused by drawing more money than the account holds
Accountability partners
Usually older with money management skills,gives objective advice
Student loan debt
Repayment schedule may be deferred while the student is still in school
Debt to income ratio
Monthly debt divided by your gross monthly income
Co-Signer
Legal obligation made by this person to make payment in event of default
Credit Report
Details persons financial history specific to their ability to repay borrowed money
Credit Bureau
Company that collects information related to individuals payment practices
Fair debt/Collections Laws
Limits the behavior or actions of those attempting to obtain payment
Lease
Is a legal binding contract for a specific period of time
Management by Crisis
Often displayed by drama addicts and poor planning
Auto payments
Cash taken from an individual’s account every month
Auto payments
Cash taken from an individual’s account every month
Paradigm shift
Fundamental change in approach or underlying assumption
Portfolio
A range of investments held by a person
Lease(car)
The most expensive version of financing
Balloon Payment
Oversized amount due at the end of a mortgage or commercial loan
Brand new car
Drops in 18%-28% in the first year
Equity
The difference between current market value and what is owed
Debt consolidation
Combining of several loans into a new loan and paying more interest
Income
Biggest wealth builder
Federal trade commission
Main goals are to protect consumers and ensure a competitive market
Fraud
Wrongful or criminal deception intended to result in financial or personal gain
Electronic access
Allows others into your financial accounts
Electronic access
Allows others into your financial accounts
Caveat emptor
Buyer alone is responsible for checking the quality of goods before a purchase is made
Caveat emptor
Buyer alone is responsible for checking the quality of goods before a purchase is made
Power over purchase
Taking control over your impulse buying through various tactics
Due diligence
Research best quality at best price before a large purchase
Oppurtunity costs
Loss of potential gain from other alternatives when one alternative is chosen
Major Purchase
Over 1000$, house, car, vacation, reception, furniture
Insurance
Arrangement by which a company guarantees compensation for,specified loss in return for payment
Liability
Being responsible by law
Premium
The cost of insurance
Deductible
Specific amount of money that the insured must pay before an insurance company will pay on their claims
Co-Pay
Minimum auto insurance coverage requires by law
Bargain
Bought more cheaply than is usual or expected
Walk away
Tactic of bargaining and power over purchase
Auction
Public sale in which goods or property are sold to the highest bidder
Estate Sale
Liquidation of the belongings of someone who has passed away
Single Stocks
Future contract with no share rights or dividends
Bonds
Investor loans money to an entity
Annuity
Insurance company investment designed to grow funds
Dividends
Payments regularly paid by a company to there shareholders
CFO
In charge of accounting
CEO
In charge of management and growth
Stockholders
Individual who has purchased shares from a coporation
Risk return ratio
Measure of profit as related to the possibility of loss of the investment
Entrepreneur
Person who organizes, creates, and operates a business
Creative Process
Usually involves, quiet deliberative thought
Serendipity
Events by chance in a happy or beneficial way
E-Business
Conduct of profit soles through the Internet
Technology
Knowledge dealing with applied sciences, especially in industry
Bureaucracy
Governmental system that often slows or impedes progress
Competition
Efforts of two or more parties acting independently
Information Business
Scientific,technical,medical training is sold
Hierarchy
Old form of management: status given to those with experience
Value chain
Activities followed by a firm to deliver their product or service to the market
Outsource
Goods or services obtained by an external supplier
Fulfillment
Specializes in fulfilling a service on behalf of the product/company owner
Business concept
Bridge between an idea and a business plan
Distribution
The action of supplying goods to the consumer
Feasibility
Process of investigating the big picture of a specific industry for a niche
Executive summary
A great concept statement that presents a business idea as utmost importance
Development plan
Proof of plausible financial growth through instating specific steps
Financial Plan
Usually a 1-3-5 year statement of profit application and expected growth
Timeline
Graphic representation of obtaining goals from both the developmental and financial plans
Timeline
Graphic representation of obtaining goals from both the developmental and financial plans
Adaption
A change or process of change which allows profit to be better suited to the business environment
Bargaining power
Ability to exert influence over another
Branding
Creating an unique name and image for a product
Niche
Concentrating all marketing efforts on a small but specifically defined segment of an industry
Industry Research
Planned investigation aimed at knowledge of a company or its products
Trends
General direction in which something is developing of changing
Management style
Method of leadership used
Business culture
Behavior of humans within an organization toward producing employee satisfaction
US Securities and Exchange Commission
Agency that regulates the securities market
US department of commerce
Presidential cabinet sector that promotes job and business creation
Benchmarks
Point of reference against which things may be compared or assessed
Demographics
Statistical data relating to particular groups
Demand
Consumers desire and willingness to pay a price for a specific good or service
Test market
A tool used to provide insights into the market success of a new market
Capital requirements
Funds needed to launch a start up business
Mission statement
Summary of the aims and values of a company
Product
Article, substance, or manufactured or offered for sale
Marketing strategy
The goal of increasing sales and achieving a competitive advantage
Loan fund dispersal
Structure detailed as it relates to use of funds received to start a new business
Resume
Summing up prior experience in business
Reference
Recommendation provided by a business associate
