| A | B |
|---|
| Balloon Mortgage | a home loan with a low initial interest rate, but with a large payment at the end of the loan term, usually 5-7 years |
| accrue | when money grows, for example, interest on a bank account |
| Collateral | an item of value pledged as a guarantee for payment of a loan which can be repossessed by the lender if the loan is not paid back |
| Security Deposit | an amount a renter must put down in order to ensure the property will not be damaged during occupancy |
| Invoice Price | the amount the dealer paid for a car |
| Persuasive Advertising | ads that are designed to appeal to one’s emotions |
| Rain Check | a guarantee that you will receive the sale price when more inventory arrives of sold out products |
| Dealer Add-ons | high priced items that dealers try to sell to customers, which add little to no value to the automobile |
| Lease | the contract you sign in order to live in a rental property for a specified period of time, or a long term rental of an automobile |
| fixed-rate mortgage | a home loan that has an interest rate that remains the same throughout the life of the loan |
| Equity | a benefit of ownership in property, amount paid above what is still owed on a loan |
| Defensive Advertising | advertisements that are designed to dispute the claims of competitors |
| Utilities | services used each month in a residence, such as water, electricity, natural gas, cable TV, internet, etc. |
| Down Payment | the initial amount of money invested but not included in the loan amount |
| Conspicuous Consumption | buying goods and services not for their intrinsic value but for the purpose of impressing others in hopes of improving one’s social status |
| W-2 | a form that summarizes an employee’s earnings and withholdings for the year sent to the tax payer by the employer |
| Positive Incentive | a reward or other enticement that encourages a behavior |
| Negative Incentive | a penalty that discourages a behavior |
| Resale Value | the amount you can get for your car if you were to sell it |
| Realtor | a person who helps homeowners sell their homes by showing properties to potential buyers |
| Warranty | a guarantee by a manufacturer or merchant that a product will do what it was made to do |
| Thrift/Consignment store | a retail establishment that sells used merchandise |
| ARM | a mortgage where the interest changes are based on the prime rate but is a dangerous type of mortgage |
| Landlord | Another term for the person who rents their property. AKA Lessor |
| Warehouse Store | a large store type that requires membership and sells in bulk |
