LifeSmarts Consumer Rights Vocab 3

Wants

Something people desire to have, but may or may not be able to obtain

Antitrust laws

Laws that protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy

Needs

Something you must have to survive

Constructive complaining

A request for consumer redress by providing detailed feedback to a business

Decision making process

Selecting a course of action after choosing from several alternatives

Comparison shop

Looking at prices and features of similar items before making a purchase

Delayed gratification

The abilitiy to put off something now for a greater reward later

Caveat Emptor

The idea that the buyer alone is responsible for checking the quality and suitability of a good before a purchase is made; Latin for “let the buyer beware”

Competition

Rivalry among sellers to increase profits and market share

Imports

Goods or services brought from abroad and offered for sale

GDP

Gross Domestic Product; the monetary value of all the finished goods and services produced within a country’s borders in a specific time

Business cycle

The sequence of economic expansion and contraction

Consumer

A person who purchases goods and services for personal use

Retail

The sale of good to the public in relatively small quantities for personal or household use

Voting Rights Act

Federal law that banned racial descrimination in voting

Civil Rights Act

Federal law that prohibited discrimination based on race, gender, national origin, color, or religion, and provided equal access to employment opportunities

Department of Justice

Agency responsible for enforcing federal laws and protecting the public from threats both domestic and foreign

Incumbent

An elected official who already holds a political position and runs again for reelection

Constituent

A person who resides or works in a location represented by a politician

Initiative

A process citizens use to bypass their state legislature and place proposed statutes, and in some states constitutional amendments, on the ballot

Recall

A procedure that allows citizens to remove and replace a public official before the end of their term in office

E-commerce

The process of buying and selling online or electronically

E-wallet

Digital versions of credit cards or debit cards stored in wallet apps on your mobile device

Digital download

A product you may purchase that is delivered to you digitally rather than physically

Mobile payment

Money paid using a mobile device

Two-factor authentication

Multiple login credentials are used to enhance security

Coupon codes

Promotions for online purchases that allow the consumer to save money on the purchase or the shipping costs

Affiliate marketing

A marketing arrangement in which a company pays other people, companies, or websites a commission for traffic or sales

Assume risk

Paying the full price if a financial loss occurs

Avoid risk

Not engaging in behavior that could cause a financial loss

Budget

An organized spending and savings plan whereby you match expected income to your expected outflow

Cash flow

The total amount of money being transferred into or out of a business, account or and individual’s budget

Credit card

A card that authorizes the delivery of cash, goods or services for future payment with interest, according to a specific repayment schedule

Credit report

Confidential report on a consumer’s payment habits as reported by their creditors to a consumer credit reporting agency

Credit score

A statistical number used to represent a consumer’s creditworthiness

Debit card

A card, issued by a financial institution, that allows consumers to make purchases withdrawals, or other types of electronic transfers directly from checking or savings accounts

Fixed expenses

Expenses that are the same each month

Flexible expenses

Expenditures that change each month and can be reduced or eliminated if necessary

Impulse buy

An unplanned decision to purchase retail merchandise on whim or at the spur of the moment

IRA-Individual Retirement Account

A retirement plan that allows workers to set aside money each year in tax-deferred savings

Overdraft

An expenditure (check or debit card) made without sufficient money in an account

Overdraft protection

A line of credit that allows you to spend more funds than your actual balance

PYF- Pay Yourself First

Putting money into savings each month before paying other bills

Reconcile

Comparing and adjusting the checkbook record to balance with the bank statement

Reduced risk

Taking steps to eliminate the likely possibility of financial loss

Risk

The probability of financial loss

Skimming

Criminals use a device that copies information from a credit or debit card’s magnetic strip in order to use the card illegally

Transfer risk

Paying a fee for another party to assume your financial loss