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pfm final
Car Detail
A service provided by specialists who clean and polish the outside as well as clean and treat the interior of a car.
Car Registration
A license tag fee that must be renewed annually.
Car Title
A legal document that establishes ownership of the vehicle.
Car-Buying Service
A service that allows you to choose the vehicle features you want, and a professional car buyer takes over the price negotiation for you.
Classic Cars
Older vehicles in excellent condition that appreciate if valued as collectors' items.
Dealer Add-Ons
High-priced, high-profit dealer services that add little or no value to an automobile.
FTC Rule
Requires that dealers fully disclose to buyers what is and is not covered under warranty for the used vehicle.
Hybrid
A type of vehicle that uses alternate energy sources, such as natural gas or battery power, in addition to gasoline.
Invoice Price
The price the dealer paid for a car.
Lemon
A car with substantial defects that the manufacturer has been unable to fix after repeated attempts.
Lemon Laws
Laws that protect consumers from the consequences of buying a defective car.
Oxidize
A chemical reaction with air that causes paint to lose its color and shine.
Polishing Compound
A substance that can smooth out surface scratches, scuffs, and stains.
Preapproval
The process of getting a new- or used-car loan prearranged through your bank or credit union.
Sticker Price
The manufacturer's suggested retail price (MSRP) shown on the tag in the car's window.
Upholstery
The seat-covering material in a car.
Vehicle Emission Test
A test to verify that a vehicle meets the minimum clean-air standards.
Vehicle Identification Number (VIN)
An alphanumeric number that identifies each vehicle manufactured or sold in the United States.
Assigned-Risk Pool
A group of people who are unable to obtain automobile insurance due to high risk
Collision Coverage
Automobile insurance that protects your own car against damage from accidents
Comprehensive Coverage
Automobile insurance that protects you from damage to your car from causes other than collision or vehicle overturning
No-Fault Insurance
Automobile insurance in which drivers receive reimbursement from their own insurer, no matter who caused the accident
Personal Injury Protection (PIP)
Automobile insurance that pays for medical, hospital, and funeral costs of the insured's family and passengers, regardless of fault
Umbrella Liability Insurance
A supplement to your basic auto and property liability coverage that expands limits and includes additional risks
Uninsured/ Underinsured Coverage
Automobile insurance that pays for your injuries when the other driver is legally liable but unable to pay
Attractive Nuisance
A dangerous place, condition, or object that is particularly attractive to children
Co-insurance Clause
A provision requiring policyholders to insure their building for a stated percentage of its replacement value to receive full reimbursement for a loss
Endorsement
A written amendment to an insurance policy
Homeowner's Policy
Insurance that protects property owners from property and liability risks
Liability Coverage
Insurance to protect against claims for bodily injury to another person or damage to another person's property
Personal Property Floater
Insurance coverage for the insured's movable property wherever it may be located
Renter's Policy
Insurance that protects renters from property and liability risks
Uninvited Guest
A person presumed to have permission to be on your property
HMO
A group plan offering prepaid medical care to its members.
Basic Health Coverage
Coverage for medical, hospital, and surgical costs.
Group Insurance
Health insurance obtained through employers in which all insured have the same coverage and pay a set premium.
Major
Coverage against catastrophic expenses of a serious injury or illness.
Stop-Loss Provision
An insurance clause that caps or sets a maximum that the insured has to pay during any calendar year.
Health Insurance
A plan for sharing the risk of high medical costs resulting from injury or illness.
COBRA
A law that allows insurance to continue after employment ends.
Flex 125 Plan
An employee benefit program that allows employees to set aside pretax money for deductibles and co-payments.
Portability
The feature that allows a group policy to be converted into an individual policy.
Term Life Insurance
A life insurance policy that remains in effect for a specified period of time.
Double Indemnity
A rider that allows the beneficiary to be paid double the face amount of the insurance policy in the event of accidental death.
Disability Insurance
An insurance plan that makes payments to replace income lost when illness or injury prevents the insured from working.
Incontestable Clause
A provision that prevents denial of coverage after a period of time.
Permanent Life Insurance
Life insurance that remains in effect for the insured's lifetime and builds a cash value.
Life Insurance
Insurance that provides funds to the beneficiaries when the insured dies.
Cash Value
The savings accumulated in a permanent life insurance policy.
On-Campus
Dormitory, Co-op
Off-Campus
Apartment, House, Duplex, Condo
Security Deposit
A refundable amount paid in advance to protect the owner against damage or nonpayment
Planning Your Moving
Having savings Have income Have supplies Think ahead Make reservations and plans
Bundling
Combining services into one package
Renting
The process of using another person's property for a fee
Landlord
The owner, or owner's representative, of rental property
Tenant
A person who rents property
Lessor (Landlord)
Person responsible for the property
Lessee (Tenant)
Person who will take possession of the property
Rental Agreement (Month-to-Month Agreements)
A written agreement that allows you to leave anytime as long as you give the required notice
Rental Inventory
A detailed list of current property conditions
Landlord Obligations
Locks Window guards for child protection Health, Safety, and maintenance standards
Advantages of Home Ownership
Value and equity Quality of life Tax savings
Market Value
What a ready and willing buyer and a ready and willing seller would agree upon as the price
Appraised Value
The recent selling price of a similar home in your area is a good estimate of the current value of your home.
Assessed Value
It is usually a percentage of market value. Used to determine property tax (determined by municipality).
Equity
The difference between the market value of property and the amount owed on it.
Down Payment
(10-20% of purchase price) The most common sources of down payment money are personal savings and informal loans from parents or relatives.
mortgage
A loan to purchase real estate
Types of Mortgages
Fixed-rate mortgages & Adjustable-rate mortgages
Adjustable-rate mortgages
(ARM) a mortgage for which the interest rate changes in response to the movement of interest rates in the economy as a whole.
Fixed-rate mortgages
A mortgage on which the interest rate does not change during the term of the loan.
Closing Costs
Typically $3,000-$5,000
Home Ownership Costs
Property Taxes,Property Insurance,Utilities, and Maintenance & Repairs
Deductible
The specified amount of a loss that you (the insured) will have to pay.
Economic Risk
A risk that may result in gain or loss because of changing economic conditions.
Indemnification
Putting the policyholder back in the same financial condition he or she was in before a loss occurred.
Insurable Interest
Any financial interest in life or property such that, if the life or property were lost or harmed, the insured would suffer financially.
Insurable Risk
A pure risk that is faced by a large number of people and for which the amount of the loss can be predicted.
Insurance
A method for spreading individual risk among a large group of people to make losses more affordable for all.
Liability Risk
The chance of loss that may occur when your errors or actions result in injuries to others or damages to their property.
Personal Risk
The chance of loss involving your income and standard of living.
Premium
The fee paid at regular intervals by the owner of an insurance policy.
Property Risk
The chance of loss or harm to personal or real property.
Pure Risk
A chance of loss with no chance for gain.
Risk Assessment
Understanding the types of risk you will face and their potential consequences.
Risk Assumption
Accepting the consequences of risk by self-insuring to absorb the loss.
Risk Avoidance
Lowering your chance of loss by not doing high-risk activities.
Risk Management
An organized strategy for controlling financial loss from pure risks and insurable risks.
Risk Reduction
Taking measures to lessen the frequency or severity of losses that might occur.
Risk Shifting
Transferring risk by buying insurance to cover potential losses.
Speculative Risk
A risk that may result in either gain or loss.
Money Market Fund
A mutual fund that invests in safe liquid securities.
Global Fund
A mutual fund that purchases international stocks and bonds as well as U.S. securities
Growth Fund
A mutual fund whose goal is to buy stocks that increase in value over time.
Prospectus
The legal document that offers securities or mutual fund shares for sale.
Income Fund
A mutual fund whose investment goal is to produce current income in the form of interest or dividends
Index Fund
A mutual fund that tries to match the performance of a particular index.
Load
The sales fee charged for buying mutual funds.
Balanced Fund
A mutual fund that minimizes risk by investing in a mixture of stocks and bonds.
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