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Economics:Skills For Consumer Success


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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
twice a month, 24/yr
once a month 12/yr
payment for labor or services performed
hourly wage
required to work certain amount of hrs/week
1.5 times regular hourly pay usually
fixed rate of pay for labor or services
minimum wage
lowest hourly wage that can be paid to an employee
less than minimum wage, but also benefits of tips
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
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
the part you deposit in an account
paycheck stub
record of gross pay and deductions
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
a document that gives an institution authority to operate.
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
amount owed
number of years or months the money is deposited
rate of interest
the amount paid on each dollar saved during a time period
the amount paid for the use of borrowed money
the amount your money will earn in interest
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
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
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
an allowance maid to your former spouse for support after a legal separation
property that you own
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
joint ownership; two or more people share ownership rights
someone to whom you owe money
credit references
people who will cecommend that you are a good credit risk
money owed
debt balance
amount still owed on a debt
failure to fulfill the terms of the loan agreement
those who rely on you for financial support
financial obligations, such as a car loan
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
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
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
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
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
the portion of covered medical expenses that you pay
the dollar amount you must pay each year before the insurance company will pay any portion of your medical expenses
person who purchases the policy
an insurance contracty
insurance agent/broker
person who sells insurance
amount paid for insurance
items or circumstances for which the insured is promised payment
formal requests for payment of amount or a percentage of the financial loss
doctors, hospitals, clinics, or other health care services
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
set amount for an office visit or prescription
services they will not cover
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
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 67
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
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
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
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 necklace stolen in france is covered
umbrella policies
cover more than just bodily injury and property damage
decrease in value of property as it becomes older and starts to wear out
car or any other product that is defective
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
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
the people who pay rent to live in the apartment building
written contract allowing use of the owner's property for a specified time period
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
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
legal right to own property
recording fee
for the deed to the property
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
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
fraudulent or deceptive schemes
legal agreement between two or more people that establishes legal obligation
capable of understanding the terms of the contract
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
percentage increase of the initial investment
regular payment made by a company to its owners from the profits the company makes
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
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
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
the study of how goods and services get produced and how they are distributed
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
basics such as food, clothing, shelter, etc
goods or services not necessary but desired
deals with economic topics and economic deisions from an individual's or small business perspective, which includes individual companies and small groups of consumers
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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