wow 5. checking account: a banking service wherein money is deposited into an account and checks...

Introduction to Marketing

WOW 5

Checking account: A banking service wherein money is

deposited into an account and checks are written to withdraw

money as needed

Example: Used by your parents, business owner, or you to keep

track of money.

Credit: The privilege of borrowing something now, with the agreement to pay

for it later

Example: A Macy’s, VISA, Mastercard, American Express cards.

Creditworthiness: Past and future ability to repay debts

Example: If you want to buy a car you have to have a history of being

able to repay the debt.

Creditor: Any person to whom one owes money or

goods

Example: Person who has a loan for a car. (Or other item)

Debit card: A plastic card that consumers may use to make

purchases, withdrawals, or other types of electronic fund transfers. Use of a debit card results in an

immediate transfer of funds

Example: VISA or Mastercard that is attached to your bank account.

Debt: Money owed

Example: If you have an agreement to repay; loan.

Disposable income: The money you have to spend or save as you

wish after taxes, social security, and other required and optional

deductions have been withheld from your gross pay

Example: Used to pay bills; house payment, car payment, etc.

Discretionary income: Money that is left over when

the bills have been paid

Example: Money ear tagged to do things you may want;

vacation, coffee, new phone, etc.

Income: Money that comes in from property, business or

work

Investment: Outlay of money in the hope of

realizing a profit

Example: buying a house

Saving: Setting aside income or money for future

spending

Example: bank savings account

Stock: Ownership in a corporation; stock can be

common or preferred

Example: Apple Corporation