TERMS TO KNOW SO YOU CAN SPEAK THE FINANCIAL LANGUAGE
Annuity
Investing for a guaranteed cash flow.
Blue Cross Blue Shield
Similar to other health insurance providers in the state of Michigan, Blue Cross provides hospitalization coverage and Blue Shield provides surgical and medical coverage.
Co-Insurance vs. Deductibles
Deductibles are initial costs (1st dollar) the insured pays for in a claim (either health or auto coverage) and Co-Insurance is an amount (usually only in health claims) paid by the insured (after the deductible) in conjunction with the insurance company to a predetermined amount.
Blue Chip Stock, what is it?
Long Term Care (LTC) Insurance
LTC policies help to cover the costs of health care not covered by health insurance. These costs revolve around paying expenses related to the six activities of daily living (Bathing, Dressing, Eating, Toileting, Incontinence, and Transferring).
"As Is" use this phrase when selling
When you sell an item use this phrase "As is" in the sales contract. This will help alleviate any liability you may have on the sold item and releases you from any implied warranty after the sale.
Bonds
Dollar Cost Averaging
Mutual Funds & EFTs
Opportunity Costs
Doing something forcing us to sacrifice something else. Constraints based upon scarcity of resources (money being one resource).
Incentives
The basic belief of economics. Humans behave in highly predictable ways based upon the benefits or costs derived from their actions.
Bitcoin / Cryptocurrency / Digital Currency
Digital Currency is money stored and exchanged through computers and the internet. Cryptocurrency is only available in digital form and is stored in blockchain format. Bitcoin is the most widely known example.
Credit Bureau
A firm (Equifax, Experian, and TransUnion in the USA) that collects and keeps detailed information from banks, merchants, utility companies and public court records on borrowers.
Credit Card
A borrowing account usually issued by a bank or other lending institution allowing repeated use (up to a specified maximum credit limit) as long as regular monthly payments are made.
Credit Score
A 3 digit number that is an indication of a person's credit worthiness (ie. how likely to repay the debt). Ranges from 300 (very poor) up to 850 (excellent).