Consumer Smarts and Financial Planning Flashcards

A set of vocabulary flashcards based on the lecture notes regarding consumer decisions, automotive costs, insurance definitions, and rental terminology.

Major purchase

One that will use up a large chunk of your available cash or credit limit.

Depreciate

To lose value quickly, such as when a vehicle goes to the road and its value goes down immediately.

VIN

Vehicle Identification Number.

Risk management plan

A plan designed to protect you against financial losses from life’s bumps.

Major types of insurance

Health Insurance, Auto Insurance, Home/Renters, and Life Insurance.

Optional car insurance coverages

Collision, Comprehensive, Uninsured, and Personal Injury/ medical.

Essential health insurance coverages

Routine Care, Prescriptions, and Dental.

PCP

Primary Care Physician.

HMO

Health Maintenance Organization.

Liability

When you're at fault for something.

Beneficiary

A person or entity, such as a charity, that you name as the recipient.

Premium

The payment you make to an insurance company.

Deductible

An amount you have to pay before your coverage kicks in.

Utilities

Services including Water, Electricity, Internet, and Cable.

Security deposit

Money set aside for repairs of any damage you may do to an apartment beyond normal wear and tear.

Apartment rental considerations

Location, Size, Style, and Amenities (Pool, gym, storage).

Lease

A rental agreement.

Tenant

The person renting from the landlord.

Lessor

Landlord.

Renter’s insurance

Insurance to protect you against theft or damage done to your apartment by you or other people.

Fixed rate mortgage

A mortgage where the interest rate stays the same over the life of the loan, usually up to $30$ years.

Variable rate mortgage

A mortgage where the interest rate may change over the life of the loan; a rise in interest means a rise of monthly payment.

Three main things to consider when thinking about insurance, any insuranc

1. Lifestyle, Age factor, and health factor. 

4 optional coverages of car insurance

1. Collision, Comprehensive, Uninsured, Personal Injury/ medical. 

4 major types of insurance -

1. Health Insurance, Auto Insurance, Home/Renters, and Life Insurance. 

Points to remember on purchasing a car, there are 3 -

1. Taxes and fees will be lower on a less expensive car, you can lower your monthly payment by putting more money down, a lower interest rate will mean you pay less over the life of the loan. 

1. Consumer smarts, 3 questions to consider or ponder?

But are the costs worth it?  Do you have the cash to pay for it?  Can the Purchase wait?