Cons. R. Exam 4

• Lifestyle
• Location
• Type of housing

• Payment for property use
• Includes security deposit - advanced payment to cover damage

• Protections for tenants vary by state
• Common in college towns
• Way to prevent is to take pictures of house when you initially rent

• Home inspection
• Moving costs
• Furnishings
• Utilities
• Maintenance
• Stress

• Networth and income
• Type of home
• Quality

• Loans secured by real property
• Reverse mortgage - pay homeowner in monthly advances or through credit line

Legal process where a lender attempts to recover the balance of a loan from a borrower who has stopped making payments

Giving "redlined" area unfair treatment regarding home financing and insureance

• Listing / Selling agent
• Buyers Agent
• Buyer broker

• Contractual arrangement
• -Monthly payment
• -Security deposit
• -Vehicle condition upon return

• consumer reports
• edmunds
• kkb

• What kind of car do you need?
• -#of seats gas milage

• How much can you afford?
• -Total monthly car payments <20% of monthly take home pay

• Lease or buy?
• -Advantage
• *Less $ up front
• *May be lower monthly payment
• -Disadvantges
• *No car at end of lease w/o additional payments
• *Extra charges when turning in

• Research 
• -Gather info on -3 cars you're considering
• -Look at "Best vehicles: list on Edmunds and Consumer reports

• Consider Costs of Ownership
• -Depreciation
• -Insurance
• -Maintenance
• -Fuel Costs

• Research options
• -Models
• -Dealers
• -Interest rates
• -Calculate monthly payment

• Test drive
• -Simulate conditions you'll be using car in
• -No radio

• Leave the dealer ship
• -Narrow choices
• Make deal to purchase

• High balling
• -Offered high amount for trade-in (amount added to new vehicle price)
• Low-balling
• -Offering very low price for vehicle, added fees/extras that drive up the price

• Repairpal.com
• -"Fair price" for repairs
• -Mechanic ratings

• Short term
• Intermediate
• Long range

• Financial plan
• With fixed expenses (like rent and cable) and variable expenses (like gas a groceries)

Assets minus liabilities

• Payments to the government
• Tax avoidance - legal money management strategy to reduce taxes (NOT EVADING TAXES)

• Low savings rate
• Emergency fund -You should have 6-9 months of income saved in a liquid account
• Retirement saving - the sooner you start the better off
• Mint.com- easy way to track all your accounts at once

• APY (Annual percentage Yield)
• -The standardized
• -In ads/promotions
• -Based on 365 day period
• APYE (Annual percentage yield earned)
• -On statements

• Nation wide campaign to encourage saving money
• College pilot program

• ATM- much higher then it should be
• Overdraft protection / fees
• Ave. to open checking account: $408.76

• -More choice
• *Interest rates
• *Smaller banks
• -Fewer "free" services
• -Privacy

• Lack of basic banking accounts
• Alternative financial sector
• Card blocking 
• -Credit hold (ex. hotels hold $110 for $87)
• -Debit hold

• Fee only
• Commission only
• Fee and commission (aka fee based)

• CFP - Certified Financial planner
• NAPFA Member - National association of personal financial advisor
• CPA - certified public accountant

• Who is sponsoring?
• Who is the speaker? 
• What is their motivation

• Cost of using money
• Rates determined by
• -Supply (amount lenders are willing to give)
• -Demand (amount borrowers are willing to pay)

• Credit cards, student loans, automobile loans, personal loans - anything but mortgage
• 4/5 college students use credit cards

• started 1973
• Typical cardholder 
• -8-10 cards
• -Owes >$4,000

• Tiered lending
• Balance transfers
• Cash advance fees
• Need to Comparison shop

• Offering more credit than is "safe"
• Increasing fees
• Loss of grace period / reducing grace period
• Universal default 
• Minimum payments
• -$3,173 balance, 1.5% APR min payment

• Check-cashing outlets -$2 to $40
• Payday loans -470%

Unfair deceptive or fraudulent practives of some lenders during the loan origination process

• Once a year from every major provider
• -annualcreditreport.com
• Check for accuracy, ID theft
• Credit reporting bureaus
• -Experian
• -Transunion
• -Equifax

• Varies betweek 350 and 850
• -how likely an individual is repay a loan or make credit payments on time
• *10% types of credit in Use
• 19% request for new credit
• 15% length of credit history
• 30% current total debt
• 35% payment history

• Legal status for those who can't repay debts
• Repay some depts & keep most property
• How mcuh you spend can be more important than income
• Need saving/smart decision in case of emergency

A financial arangement between individuals and insurance companies used to protect against loss or injury

• 1943 McCarran-Ferguson Act
• -Prohibits federal gov. from regulating insurance or conducting research on insurance industry

• Only at state level -effectiveness varies
• Exempt from anti-trust laws -there is a cal for repeal

• Early outcomes of affordable care act
• -Self employed
• -Colorado
• -Confusion about the ACA

• Hire own appraiser
• Ask for report on personal information collected by insurance co. -correct misinformation

• Choose policy to meet needs
• Read policies & understand them
• Look for exclusions & limitations
• Keep policy records

• Think about what insurance companies are doing and what options consumers have
• Most states require liability coverage - cover bodily injury or property damage
• Liability insurance -3 numbers
• 1st - for bodily injury to 1 person
• 2nd - for bodily injury >1 person
• 3rd - for property damage

• 3 financial responsibilty options
• -1 Insurance by company licensed in VA
• *Must provide minimum limit of liability 25/50/20
• -2 Uninsured motorist Fee
• *$ffo paid each year to DMV -drive at own risk
• -3 Self insurance

• Driving history
• Type of vehicle
• Gender and age
• Location

• Property insurance 
• Liability insurance -when someone is injured

• Buy it based on income, servies expenses you need to replace
• Not an investment
• Churning - agent encourages consumers to switch policies to get commission is illegal

• States regulate insurance industry
• Check your ins. co. rating
• -Insure.com
• -Consumer reports

• Commitment to funds for long-term growth
• -Purpose: build & maintain wealth

• Deposits at banks, saving & loan associations, & credit unions
• -federal deposit insurance corporations (FDIC)
• -Credit union insurance corporation
• Securities investor protection corporation 
• -Non profit, non governmental
• -Protects if brokerage goes broke

• Annuties
• Cash-value life insurance
• Mutal funds
• Stocks

• Stocks - ownership in company
• Bonds - lending money to company, government
• Mutual funds - group of investments

Diversification - investing in a variety of categories

• Defined Benefit plans - disappearing, based on length of employment and final salary
• Defined contribution - growing, tax sheltered, like a savings account, portable, employee makes decisions or takes risks
• Employee stock ownership plan

• To acquire
• To bond
• To learn
• To defent

• Distribution of goods and services world wide
• Social responsibility- individual and organizational obligation to act in best interest of society

Economic development that provides for human needs without undermining global ecosystem and depleting essential resources

• Modern medicine
• Longer life spans
• New techonology
• Access to higher education
• Less physical strenous labor
• Shorter work weeks

• Wealth inequality - top 1% have 40% of the money in US
• Pullution - more people die each year from unsafe water than from all violence
• E-waste - where do our electronics go when we dispose of them

• Growing economic interdependence - more choice
• Improved environmental protection regulation

• International organization can intrude in to national soverignty
• Gap between the haves and have nots
• Environmental problems
• Spread/dominance of american values and culture

• Organized social moment seeking equity in international trade
• -Better trading conditions for producers in developing countries
• -Promotion of sustainability
• -Higher social & environmental standards

• Consumer international promotes consumer organization and consumer rights
• United nations guidelines on consumer protection

• Standards of right and wrong that prescribe what human should / should not od
• Also the study of what is right or wrong