Economics:Skills For Consumer Success

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job: specific task or stint of work
functional resume: when you list a brief summary of your experience and specify skills and abilities
transferable skills: common to a number of jobs and can be adapted to a particular employer's need
self management skills: personality traits that help an employer decide if your temperament suits a particular job
job content skills: related to job-specific tools and tasks.
biweekly paycheck: paid every two weeks for a total of 26 paychecks per year
semimonthly: twice a month, 24/yr
monthly: once a month 12/yr
wage: payment for labor or services performed
hourly wage: required to work certain amount of hrs/week
overtime: 1.5 times regular hourly pay usually
salary: fixed rate of pay for labor or services
minimum wage: lowest hourly wage that can be paid to an employee
tips: less than minimum wage, but also benefits of tips
commission: fee for service
piecework rate: you earn a set amount for each piece produced or for each piece produced that exceeds expected level of production
deductions: money taken out of a person's paycheck
payroll taxes: deducted for federal state, and social security taxes
gross pay: salary or wages received before taxes and other deductions are taken out
net pay: amount of money and employee takes home after deductions
paycheck: the part you deposit in an account
paycheck stub: record of gross pay and deductions
exempt: meaning no taxes will be withheld from your pay
Form W-2: A wage and tax statement, provides record of wages earned and total tax deductions
income taxes: taxes on wages, salary, interest, dividents, tips, etc required by US
tax refund: amount returned by govt. because a taxpayer had paid more than owed
3 main types of financial institutions offering checking accounts: commercial banks, savings and loan associations, and credit unions
credit union: nonprofit organization with membership limited to a particular group
share draft accounts: interest-bearing checking accounts
charter: a document that gives an institution authority to operate.
teller: person at the counter of a bank
service charge: fee that the financial institution charges for checking account services
blank endorsement: when you cash or deposit a check made out to you, and u endorse the check by signing your name on the back
restrictive endorsement: to deposit a check and receive no cash
endorsement in full: when you receive a check, but pay someone else with it (3rd party check)
stale check: keeping a check longer than 6 months
outstanding checks: checks written but not recived by a bank
reconciliation statement: balances your check stub record or check register with the bank's statement
simple interest: amount of money you earn on the money you deposit
principal: amount owed
time: number of years or months the money is deposited
rate of interest: the amount paid on each dollar saved during a time period
interest: the amount paid for the use of borrowed money
yield: the amount your money will earn in interest
liquidity: money deposited into savings that can be easily and quickly turned into cash
low minimum balance: small deposit required to open some savings accounts.
safety of amount deposited: most banks offer insurance to cover up to $100,000 per account
certificate of depoisit (CD): an account with a high rate of interest but with many restrictions, including penalties for early withdrawal
money market depoisit accounts (MMDA's): an account with a variable rate of interest that may be higher or lower than the other types of accounts
Electronic fund transfers (EFT): eliminate costly and time consuming procedures of handling, and processing checks, deposit slips, etc. Most common is ATM
point-of-sale transfers (POS): type of EFT, you can pay a retailer or seller by using a debit card instead of check or currency
certified check: personal check you write which the bank certifies to guarantee its payment
cashier's check: often used by financial institutions to pay their own bills
traveler's checks: bought from agency/bank in certain amounts for traveling
money order: also called a register check or personal money order, serves same purpose of cashier's check
safe-deposit boxes: containers inside the vaults of banks that you can rent, provede protection for valuables
credit worthiness: determined by three factors, character, capacity, and capital
credit standing/rating: indications of your ability to pay for goods or services, established over time
credit bureaus: provide credit information about you, and your credit history
Consumer Credit Reporting Reform Act of '96: makes it easier for you to correct mistakes on credit report
equal credit opportunity act of '75: outlawed sex discrimination and discrimination because of marital status in the granting of credit
Fair debt collections practices act of '77: designed to stop abuisve practices used by some debt collectors.
five main areas of credit scoring: payment history, current debt, length of credit history, new accounts and inquiries, kind of credit
personal/shor-term/intermediate-term loans: loans that are for relatively small amounts
long-term loans: loans for larger purchases
savings and loan associations: specialize in loans for buying real estate
life insurance companies: may allow a policyholder to borrow against some types of insurance policies
consumer finance companies: often lend to consumers who do not have an established credit standing, higher rate of interest
credit unions: orgainizations that grant small loans to their members
pawnbrokers: charge extremely high interest rates, you must turn over personal property
loan sharks: unlicensed lenders who operate openly in states without usury laws
usury laws: limit the rate of interst a lender may charge
single-payment loan: lump sum loan to be repaid at the end of a certain period of tiime
installment loan: repaid with interest in a series of payments
promissory note: written promise to repay borrowed money at a certain time
secured loan: backed by something of value pleged to insure payment of the loan
collateral: the property used as a security for a loan
finance charge: the total dollar amount you pay to use credit; can be more than interest
alimony: an allowance maid to your former spouse for support after a legal separation
assets: property that you own
bankrupt: financial situation in which your debts are greater than the total value of your assets
cash value: the amount paid to you if you or the insurance company cancel the policy
co-applicant/joing applicant/cosigner: someone who signs a loan with you and promises to repay the debt if you do not repay it
co-owners: joint ownership; two or more people share ownership rights
creditor: someone to whom you owe money
credit references: people who will cecommend that you are a good credit risk
debt: money owed
debt balance: amount still owed on a debt
default: failure to fulfill the terms of the loan agreement
dependents: those who rely on you for financial support
liabilities: financial obligations, such as a car loan
mortgage: legal contract giving the lender ownership of real estate in case you do not repay a loan
mortgage holder: person or institution to whom you make mortgage payments
proceeds: the amount of money a borrower or policy holder receives
real estate: land and anything attatched to it
repossess, reclaim: to take back what was sold on an installment plan if payments are not made as agreed
securities: another name for stocks and bonds
unsatisfied judgement: deliquent debt; payment that is over due
rule of 78's: method of calculating interest
defalut payment clause: explains a late mayment charge or penalty
deficiency clause: one in which a creditor can repossess or take back, and resell goods
security interest: an agreement where the creditor keeps the ownership of goods until you complete all the payments
wage assignment/garnishment: clause that allows a lender to collect a portion of your wages if you have defaulted on a loan
disclaimer: agreement between the creditor and you that unwritten promises will not be recognized by the court in hte case of a disagreement
line of credit: refers to maximum amount you can charge at any one time
budget: plan for spending and saving money
fixed expenses: bills that you must pay every month or during certain months throughout the year
fee-for service plan: you pay for the services as you use them
benefits summary: summary of medical and other services covered
indemnity plan: type of policy where the insurance company sends you a percentage of the bill
co-insurance: the portion of covered medical expenses that you pay
deductible: the dollar amount you must pay each year before the insurance company will pay any portion of your medical expenses
policyholder: person who purchases the policy
policy: an insurance contracty
insurance agent/broker: person who sells insurance
premium: amount paid for insurance
coverage: items or circumstances for which the insured is promised payment
claims: formal requests for payment of amount or a percentage of the financial loss
providers: doctors, hospitals, clinics, or other health care services
benefits: payment for financial loss
managed care plan: prepaid care, rather than pay a deductible, u pay a premium which pays for your care in advanced
copay: set amount for an office visit or prescription
exclusions: services they will not cover
concealment: unlawful withholding of information
preexisting conditions: medical conditions that are treated or diagnosed before you buy a policy
disability income insurance: pays a portion of your salary if you are unable to work because of illness or injury
worker's compensation: health insurance provided by the state government for employees who suffer injuries or illness as a result of working conditions
term insurance policy: provides protection only; insures your life for a specified number of years
cash-value policy: combines protection and savings
beneficiary: person named in the policy who receives the amount stated in the policy
convertible term policy: can be changed into a cash-value policy
level term policies: premiums and dollar coverage remain hte same the entire time the policy is in effect
decreasing term policy: your premiums rmain the same but the dollar coverage of the policy gets smaller each year
face value: dollar amount of insurance coverage on a policy
limited-payment life/paid-up whole life: the insurance protections lasts for life, but the premium payments stop at a certain age
modified whole life: typically a cash value policin in which the premiums are lower in the early years of payment on the policy and increase later
endowment plan: another form of cash-value life insurance, which protects you for a stated number of years
universal life insurance: combination of term and cash-value insurance
retirement income: the amount of benefits a retiree receives, full benefits start at 65...now 67
401(k): retirement plan where contributions are made through your employer
tax deferred: you do not pay taxes on the money when you earn it you pay taxes on the money when it is withdrawan from the IRA fund (IRA=Individual Retirement Accounts)
Roth IRA: different from IRA; Roth IRA money is not tax deferred
risks: requires a higher payment of insurance ie. age, gender, marital status, etc (known as driver classification)
traffic violations: include speeding, reckless driving, and accidents, not parking tickets though
principal operators: main operators of vehicles
rating territory: city, or rural area that affects the price of premiums on auto insurance
driving record: affects rates, offical list of recent traffic violations
toatled: the cost to fix the damaged car exceeds the car's worth
claims history: affects rates; the history of claims made to fix damage
limits of protection: amount of coverage
Liability: the damage you may be held legally responsible for as a result of an accident in which you are at fault
property damage liability insurance: company pays for the cost of the damage to the other person's car or property, and also covers bodily injury costs up the the set amount
single-limit basis: one amount that the company will pay for any one accident
split-limit basis: separate limits are set for different categories
general liability: covers damage you cause to other people's property and injuries to accident victims
collision insurance: covers damages to your car only
comprehensive physical damage coverage: protects you against possible loss when the car is damaged in any way through no fault of your own, or when car is stolen
medical payment coverage: pays accident-related medical expenses incurred for one year after an accident
uninsured motorists protection and underinsured motorist protection: insures you against hit-and-run drivers and drivers with little or no insurance.
no-fault insurance: insurance company pays for bodily injuries to you and your passengers, no matter who caused the accident
wage-loss coverage: reimburses you for income lost while you are recovering from auto injury
substitute-service coverage: coverage for services that you cannot perform for yourself because of an auto-related injury
property protection: pays for losses to the house and other property
real property: includes physical structures that are attatched to the land, such as home, garage, and fences
floater policy: "floats" wherever the property goes...ie. necklace stolen in france is covered
umbrella policies: cover more than just bodily injury and property damage
depreciation: decrease in value of property as it becomes older and starts to wear out
lemon: car or any other product that is defective
warranty: promise by a manufacturer or dealer that a product is of certain quality and the defective parts will be replaced within a certain period of time
late model: used car that is only a few years old
mulroney label: list of standard equipment in the vehicle
invoice price: price dealer pays
sticker price: price you pay
margin: the amount you negotiate with the dealer between invoice and sticker price
gap protection: pays the difference between the value of your toatled car and the amount left on your loan or lease
balloon payment: the difference between what you have paid on the car and the amount of depreciation
closed-end lease: rate of depreciation is guaranteed before the lease by a bank or finance company
tenants: the people who pay rent to live in the apartment building
lease: written contract allowing use of the owner's property for a specified time period
equity: the difference between the value of your home and the amount you owe
down payment: the amount of money put down at time of purchase
morgage: loan wehre the amount borrowed is repaid to the lender with interest
real estate mortgage: contract between the borrower and lender for purpose of buying property
mortgage redemption insurance: form of life insurance whereby the balance of the loan is paid by the insurance company if the borrower should die before the loan is repaid
property taxes: the seller may be entitled to a refund for a portion of the year for which property taxes were paid
attorney's fees: for preparing and checking legal documents of the sale and the mortgage
loan origination fee or points: some lenders charge fees or commissions for granting the loan
title: legal right to own property
recording fee: for the deed to the property
deed: written evidence of the ownership of a piece of property
appraisal fee: charge for examining and determining the value of the property
title insurance: policy that protects the lender's interest in the property against the claims of others if the claims were not discovered by the title search or examination
counteroffer: price above your offer but lower than the original price
earnest money: proves you're serious about buying the home, later subtracted from selling price
escrow agent: third neutral party
scams: fraudulent or deceptive schemes
contract: legal agreement between two or more people that establishes legal obligation
competent: capable of understanding the terms of the contract
consideration: payment for the product or service described in the contract
bill of sale: type of written contract, includes purchases and signature of buyer and seller
full warranty: includes repair within reasonable time, full replacement or refund
limited warranty: coverage for parts but not labor, partial refunds, etc
return: percentage increase of the initial investment
dividend: regular payment made by a company to its owners from the profits the company makes
corporation: business owned by many people
capital gain: selling stock for more than you paid for it
blue chip stocks: stocks of corporations that have a reputatuon for financial stability, superior management, and a long record of growth and earnings
discount brokers: buy and sell stocks for customers for low commissions without giving investment advice
exchanges: where stocks are traded
round lot: shares of stocks in hundreds
odd lot: purchase of stocks less than a hundred shares
preferred stock: buyers are promised a fixed dividend, no voting rights
common stock: buyers have right to vote on important company issues
bond: written proof of an obligation to pay a certain amount of money, with interst, at a specified date in the future
treasury bills: short-term securities issued with maturities of a certain number of weeks
treasury notes: have a maturity of at least one year but less than ten years from date of issue
treasury bonds: have maturity of atleast ten years
municipal bond: bonds issued by states, counties, cities, and other govt. bodies
corporate bonds: bonds issued by corporations
strike price: a certain price that u buy or sell stock
investment clubs: consists of a small group organized to study stocks and invest members' money
economics: the study of how goods and services get produced and how they are distributed
scarcity: we do not have and cannot have enough wealth or resources to satisfy our every desire
opportunity cost: the things we give up when we make certain choices
needs: basics such as food, clothing, shelter, etc
wants: goods or services not necessary but desired
microeconomics: deals with economic topics and economic deisions from an individual's or small business perspective, which includes individual companies and small groups of consumers
macroeconomics: study of the economy as a whole (inflation, govt. spending, unemployment, interest rates, taxation levels, etc)
equilibrium price: price at which quantity demanded
equilibrium quantity: when the quantity demanded is equal to the quantity supplied

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