1. Consumer and Financial Decisions

Acceptable quality

A product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable

Acceptance

when the offeree agrees to the proposal

Bankruptcy

when a person is judged by a court to be insolvent; i.e. unable to pay her or his debts

Barter

the swapping or exchanging of one good for another

Blue Collar Workers

another name that used to be given to a labourer eg a plumber, builder or electrician

Book-up

a charge account operated by a trader

Budget

A list of income and likely expenditures

Business

any organisation that produces and sells goods and services in order to make a profit

Cash flow

money coming into and going out of a business

Caveat emptor

term meaning 'let the buyer beware'

Cheque

a written communication ordering your financial institution to pay a person a specific amount of money

Commerce

the buying and selling of goods and services between individuals and businesses

Commission

the percentage of a sales price received by a salesperson for her or his services

Comparison shopping

contacting (by telephone, internet or in person) a number of sellers to obtain the best deal

Complementary goods

What petrol is to a car

Consideration

the giving up of something of value

Consumer

someone who purchases goods and services to satisfy needs and wants

Consumer guarantees

a set of rights and remedies for defective goods and services

Contract

a legally binding agreement

Credit bureau

an organisation that keeps on file the credit records of consumers

Creditor

A person who is owed money

Debt Consolidation

When a number of debts are rolled into one so people can manage their debt better

Debtor

A person who owes money

Default notice

a document from a lender stating that a person has failed to carry out the terms of the contract

Disposable income

The money someone has after all their bills are paid

Distribution chain

the ways of getting the product to the customer

Dividend

sum payable as profit for shares; part of a firm's profit that is divided among shareholders

Drawee

the financial institution that provides cheque account facilities

Drawer

the person who writes and signs a cheque

Durable good

A good that is non-perishable

e-commerce

the buying and selling of information, goods and services via the internet

EFTPOS

electronic funds transfer at point of sale

Electronic transfer

the transfer of funds from one account to another via the internet or telephone

Employee

a person who works for a wage or salary

Employer

a person who hires employees

Equities

stocks and shares held by an individual

e-tailer

electronic retailer

Fee

money paid to others for their services

Fixed expenses

expenses that are the same amount every time

Flexitime

Flexible working times

Garnished

when a certain amount of money can be taken out of a borrower's wages

Goods

items that you can see or touch

Guarantor

someone who guarantees to pay back the money if the borrower does not

Impulse buying

buying something without giving much thought as to whether you really need it

Income

money received on a regular basis from work, property, business, investment or welfare payments

Insurance

the payment of an amount of money that covers a person or property in the event of loss, damage or accident so that the person does not suffer a severe financial setback

Interest

the extra money you have to pay back when borrowing money

Investment

putting money into something in order to make a profit; the purchase of new plant and equipment. Individuals, government and business all carry out investment.

Labour force

people aged 15 and over who are either employed or unemployed

Mail order

to buy products, via catalogues, for delivery by mail

Manufacturer

a person or business that makes goods

Money

any token, with an agreed value, that people accept as payment in exchange for a good or service

Mortgage

a loan for goods or a property. If you fail to make your loan repayments, then the mortgagee will repossess the goods and sell them

Needs

things that are necessary for survival, such as water and food

Net income

the amount a person has left after income tax is deducted

Offer

a proposal

Online shopping

Purchasing products over the internet

Overtime

time during which work is done outside regular working hours. Such time is usually paid at higher rates

Payee

the person who is to receive the money from a cheque

Penalty Rates

Extra rates of pay as compensation for working weekends, public holidays and overtime

Portfolio

A range of low-risk and high-risk financial investments; an area of government responsibility, such as health or defence

Premium

the amount of money to be paid to receive insurance cover

Price

the amount of money a consumer is prepared to offer in exchange for a good or service

Profit

what remains after all business expenses are deducted from sales revenue

Redress

to set right

Rent

regular payment made by a tenant to an owner for the use of the owner's building or land

Repossess

to take back goods bought on credit if repayments have not been made

Retailer

a business that sells products directly to consumers

Rip off

to overcharge or swindle

Royalty

a sum paid to authors, musicians and so on, as a percentage of the proceeds from their work

Salary

A fixed amount of money paid on a regular basis (usually fortnightly or monthly) to a permanent employee of an organisation

Savings plan

a commitment to regularly put aside some money for future use

Scam

an illegal business practice; obtaining money by means of deception

Secured loan

something deposited as a guarantee to fulfil the payment of a loan

Services

things done for you by others

Shareholder

Someone that owns a part of a company

Social Security or social welfare

A payment made by a government to help people in need

Superannuation

a way of saving so an employee has some money in retirement

Tangible good

A good that can be physically touched

Unconscionable act

any practice by a seller that is just not reasonable and often illegal

Unsecured loan

nothing is deposited as a guarantee to fulfil the payment of the loan

Variable expenses

expenses that change over time

Wage

money received by workers, usually on a weekly basis, for services they provide to an employer

Wants

things that are not essential for survival but that we would like to have

White Collar Workers

Another name that was given to professionals or office workers eg lawyer, accountant etc

wholesaler

buys goods in large quantities from the manufacturer