Personal Finance Vocab

Question 1

Cost Benefit Analysis

Answer 1

The act of comparing the cost and benefits of an economic choice before making a decision.

Question 2

Whole Life Insurance

Answer 2

Provides coverage your entire life and pays benefits to your family upon your death

Question 3

Renters Insurance

Answer 3

Provides coverage for an individual’s personal belongings while they are in a rented home.

Question 4

HOPE Scholarship

Answer 4

Provides Georgia students with financial assistance for college if they meet the GPA and rigor requirements

Question 5

Workers’ Earning

Answer 5

Is the income received from an employer.

Question 6

Social Media Footprint

Answer 6

Is the trail left behind each time a person uses a digital device, is tagged by a friend, or has information posted about them.

Question 7

Auto Insurance

Answer 7

Provides coverage for damage to your automobile in case of an accident

Question 8

Negative Incentive

Answer 8

Is a punishment that one wants to avoid for failing to behave in a certain manner .

Question 9

Phishing

Answer 9

It occurs when someone sends a fraudulent message designed to trick a person into revealing sensitive information.

Question 10

Term Life Insurance

Answer 10

Pays benefits to your family upon your death, but only provides coverage for a specific amount of time.

Question 11

Liability Insurance

Answer 11

Provides payments to individuals if you are found legally liable for an accident or injuries to others.

Question 12

Disability Insurance

Answer 12

Provides an individual with money should he/she become disabled and unable to work.

Question 13

Earning Potential

Answer 13

Is influenced by one’s education, skills, and training.

Question 14

Flood Insurance

Answer 14

Is a type of property coverage that protects homeowners from water damage to the structure and/or contents of their property.

Question 15

Better Business Bureau

Answer 15

Is a private organization that provides the public information on businesses and charities and handles consumer complaints about individual firms.

Question 16

Homeowners Insurance

Answer 16

Provides coverage for damages to one’s home and personal property.

Question 17

Positive Incentive

Answer 17

Is a reward that a person is likely to receive if they behave in a certain manner.

Question 18

Health and Medical Insurance

Answer 18

Is used to share the cost of health and medical expenses between the covered person and the insurance company.

Question 19

Dumpster Diving

Answer 19

Is an act of digging through somone’s garbage to obtain personal information that can be used to steal an individuals identity.

Question 20

Ration Decision-Making Model

Answer 20

Is the five-step process used to make economic choices.

Question 21

Deductible

Answer 21

Is the portion of a covered loss that the person must pay before the insurance company pays their portion.

Question 22

Premium

Answer 22

The fee or price a person pays to have insurance.

Question 23

Shared Liability

Answer 23

Is the relationship between the insurance company and the insured relative to responsibility for a covered loss.