| A | B |
|---|
| Consumable good | An item that is consumed in the present |
| Durable good | An item provides a stream of services to the user over a period of time and does not quickly |
| Planned buying process | Thinking through the details of a purchase |
| Redress | The process of righting a wrong |
| Closing costs | Fees and charges associated with the purchase of a property |
| Depreciation | Decrease in the value of an asset associated with the decline in its remaining useful life |
| Down payment | Portion of the purchase price that is not borrowed |
| Equity | Monetary value of a property minus the amount owed on the property |
| Homeowner’s Association dues | Monthly or yearly fees that pay for the maintenance of shared areas and necessary repairs throughout the community |
| Homeowners insurance | Covers damage or loss of the structure and contents |
| Landlord | The person who owns the property |
| Leasing | Renting a product while ownership title remains with the lease grantor |
| Mortgage insurance | Protects the lender in case a mortgage loan payment cannot be made and the lender has to take the property back through a process known as foreclosure (also known as private mortgage insurance) |
| Mortgage | A loan for the purchase or real estate |
| Real estate agent | Licensed individual representing a buyer or seller in a contractual transaction to purchase real property |
| Rent | The price paid for the use of someone else’s property |
| Rental agreement | A contract specifying the tenant’s and landlord’s legal responsibilities |
| Renter’s insurance | An optional (but important) purchase that covers damage and or loss of personal property and liability in a rental home |
| Security deposit | Money paid to a landlord to cover potential cleaning costs at the end of the lease |
| Special assessments | Fees collected by the local city government for utilities |
| Tenant | A person who rents the property |
| Automobile insurance | Provides payments for both liability and property insurance on a vehicle |
| Beneficiary | Someone who receives money if an insured person dies |
| Claim | A formal request to an insurance company asking for a payment when the policyholder has an accident |
| Co-insurance | Requires the insured individual to pay a fixed percentage of the loss after the |
| Coverage | The risks covered and amount of money paid for losses under an insurance policy |
| Deductible | The out?of?pocket money paid by the policyholder before an insurance company |
| Dependent | Someone who relies on someone else for income and care |
| Disability insurance | Provides payment to replace earnings during times when workers cannot work due |
| Emergency savings | Cash set aside that can be used to cover the costs of unexpected expenses |
| Employee benefits | Employers may offer employee benefits in the form of products or services that |
| Health insurance | Provides money to pay for health care for illness |
| Homeowners insurance | Provides payment to cover liability losses as well as damage and loss of the home structure and its contents |
| Household production | Doing something in the home without pay that takes raw materials along with a |
| family member’s skill | experience |
| In?kind income | The donation of a product or service in place of cash |
| Insurance | A financial product (called an insurance contract or policy) purchased by many |
| Liability insurance | Provides payment to others if a member of the insured household accidently |
| Life insurance | Provides payment to beneficiaries who were named by the insured person |
| Long?term care insurance | Provides payment for extended nursing care due to accidents |
| Moral hazard | When the act of insuring an event increases the likelihood that the event will |
| Policy | A contract between the insurance company and the insured that states the exact |
| Policyholder | A person who owns the insurance policy |
| Premium | The money paid to an insurance company to purchase a policy |
| Property insurance | Provides payment to the insured person if his or her property is damaged or |
| Renters insurance | Provides payment to renters to cover the damage and loss of property in a rental |
| Risk | The chance of loss from an event that cannot be entirely controlled |
