Unit 3 - Personal Finance Flashcards
want
something that people desire but don’t need to survive
whole life insurance
Life insurance that provides coverage your entire lifetime, premiums never increase
savings
money deposits placed in a bank, so funds will be available for later use
collateral
personal property that a bank can take away from you if you do not repay loan
standard value
the use of prices to compare economic value of different goods and services (gives a value or price)
credit history
how well a person has managed bills and credit in past
investments
money paid into a business with expectations, but no guarantee of future profit
interest rates
the percentage of money owed charged for its use
simple interest
interests charged only on the original amount of a loan
liability coverage
financial protection from being sued
collision coverage
insurance coverage for any damage to your own car in an accident
certification of deposit (CD)
a deposit you promise to leave in a bank for a specific amount of time
FDIC
federal agency that protects bank deposits up to 250,000 per acc; (federal deposit insurance company)
credit union
non-profit institution
health insurance
pays med bills
need
something people must have in order to survive
medium of exchange
anything accepted as payment for goods and services
bank
stores money
variable expenses
amount a person usually spends on wants rather than needs
capital gains
profit earned by selling a stock
diversification
reducing risk by investing in a variet of assets
compound interest
interest charged not only on original amount borrowed but on existing amount owned
insurance
financial protection against risks
claim
insured person’s request for payment of losses
