Chapter 12 Personal Finance

Sorority social organization of female students who share a resident
Bundling combining telephone, internet, and cable TV into 1 package
Fee nonrefundable charge for a service
Tenant The person who rents property
Condo an individually owned unit in an apartment-style complex with shared ownership of common areas
Security Deposit A refundable amount paid in advance to protect the owner against damage or nonpayment
Renting Process of using another’s property for a fee
Furnished Rental containing basic furniture
Duplex building w/ 2 separate living units that share a common central wall
Landlord The owner of the property that is rented or leased
Inventory a detailed list of current property conditions
Dormitories Buildings that contain many small rooms for on-campus housing
Lease A written agreement to rent property at a certain price for a specified period of time
Efficiency Apartment aka a studio apartment, has one large room
Eviction Legal process of removing a tenant from rental property
Pledging Process where a student joins a fraternity or sorority
Lessor aka landlord
Co-op students share in cooking, cleaning, and maintaining the building
rent-to-own you rent furniture with the option to buy
Car buying service that allows you to choose the vehicle features you want and have a professional car buyer handle the price negotiated for you
Pre-approval process of getting a new or used car loan prearranged through your bank or credit union
Sticker price Price shown on the tag in the car window
Test-drive a simple road test when you drive the car before you buy it
Vehicle emission test assures that a car meets minimum clean-air standards
Vehicle identification # An alphanumerical # that identifies it
Dealer add-ons high-priced, high-profit dealer services that add little or no value to a car
Compression Test can tell you whether to expect serious engine troubles ahead
Depreciation The decline in value of a vehicle due to normal wear and tear
Appreciation Rare cars and very old vehicles in excellent condition, increase in value
Car title Lists the legal owner and te=he registered owner of a vehicle
Oxidize When car paint begins to lose its color and shine
Consignment lot a large parking lot
Appolstery the car’s interior, or seat covers
Warranty A written statement about a product or service’s qualities or performance that the seller assures are true
Lemon laws Protect consumers from the consequence of buying a defective car
Polishing Compund used to smooth out car surface scratches, scuffs and stains
Hybrid vehicle that uses alternate energy sources
Buyers Guide A sticker placed on all used cars they offer for sale, required by the Federal Trade Comission
Car dealers specialists who clean and polish the exterior & interior
Systematic investing making investments on a regular and planned basis
Inflation A rise in the general level of prices
Investing The use of long-term savings to earn a financial return
Investing risk The chance that an investment’s value will decrease
Annual report A summary of corporation’s financial results for the year and its prospects for the future
political risk Gov. actions that affect investment values
Financial pgs. Newspaper sections containing investing data
Collectible Any physical asset that appreciates in value over time because its rare or desired by many
Permanent investing Investment choices that are held for the long run
Discount brokers buy and sell securities for clients for a reduced commission, but provide little or no investment advicce
Financial Advisors Professionals trained to give investment advice
Diversification The spreading of risk among many types of investmnets
Rule of 72 A technique for estimating the # of years required to double your money at a given rate of return
Stock A unit of ownership in a corporation
Bond A debt obligation of a corporation or gov.
Mutual Fund Pools money of many investors to buy a large selection of securites
Annuity contract where you make a lump-sum payment or series of payments that earn interest and, in return, receive regular disbursements, usually after retirement
Portfolio A collection of investments
Futures Contracts to buy and sell commodities for a specified price on a specified future date
Penny Stocks Low-priced stocks of small companies that have no track record
option the right, but not the obligation, to buy or sell a commodity or stock for a specified price within a specified time period

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