Hace

Front 1

domestic labor

Back 1

refers to labor (typically unpaid that is under taken to maintain the well being of families)

Front 2

Microeconomics approach Hypothesis 1

Back 2

household work will be allocated to the spouses' relative efficiency. The relative wages of husbands and wives will be important predictors of their household time

Front 3

Microeconomics approach Hypothesis 2

Back 3

Demand for leisure will be positively related to family income. The higher the income, the less time spent in household

Front 4

Family Sociology Approach: Resource Theory

Back 4

Partner with the most relative resources will have the most power to arrange domestic affairs the way they want. Hypothesis: when husband wife level of education are equal or near equal, division of labor will be more equal than for couples with unequal levels

Front 5

Family Sociology Approach:
Socialization Theory

Back 5

Idea that "you are what you were brought up to be." Attitudes toward sex roles hypothesis: spouses with more egalitarian ideas will have more egalitarian division of labor.

Front 6

Family Economists Approach

Back 6

Similar to economists but focus is on time allocation in household production, not a relationship between market and leisure.

Front 7

Family Economists Approach:
Hypothesis 1

Back 7

the more children a family has, the more household production will be done

Front 8

Family Economists Approach: Hypothesis 2

Back 8

The younger the youngest child is, the more household production will be done

Front 9

Family Economists Approach:
Constraint Hypothesis (Time Availability)

Back 9

Employed wives spend less time in household work. Same is true for husbands

Front 10

Family Economists Approach:
Efficiency Hypothesis

Back 10

More educated women will spend less time in household production than less educated women because educated women should be more efficient at household production

Front 11

Long Term goals

Back 11

6+ years
future value estimates
time horizon

Front 12

Intermediate goals

Back 12

2-5 years
time horizon
prioritized

Front 13

Short term goals

Back 13

1 year
time horizon
prioritized

Front 14

Balance Sheet

Back 14

describes your financial position at a given point in time.
assets
liabilities or debts
net worth

Front 15

Liquid assets

Back 15

assets held in the form of cash or "near cash"

Front 16

Net Worth

Back 16

difference between assets and liabilities

Front 17

Real Property

Back 17

immovable property, long lives, high costs

Front 18

Personal Property

Back 18

movable, mostly depreciate in value

Front 19

Fair Market Value

Back 19

price at which we can reasonably expect to sell assets

Front 20

Liabilities

Back 20

Current (short term)-owed and due within a year
long term-debt due 1 year or more from the date of the balance sheet

Front 21

Outstanding balances

Back 21

short term- bills outstanding, revolving credit
long term- installment debt, mortgage, other debt

Front 22

Net Worth

Back 22

Measure of your financial worth
equity in owned assets
what remains after selling

Front 23

Income/Expenditure Statement

Back 23

income (cash in)- earned income, non-earned income
expenditures (cash out)- 4 types: fixed, certain; fixed uncertain; flexible, certain; flexible, uncertain

Front 24

Solvency Ratio

Back 24

Shows how much of a decline in the market value of their assets a family can have before becoming insolvent. SR=networth/total assets
The higher the better
desirable >.5

Front 25

Liquidity Ratio

Back 25

Shows how much of their 1 year liabilities they could pay with liquid assets.
LR=liquid assets/total current debt
The higher the better
desirable >.5

Front 26

Savings Ratio

Back 26

Shows family's level of preparation for the future.
SR=cash surplus+amountsaved/annual net income
The higher the better
desirable >.05

Front 27

Debts Service Ratio

Back 27

Shows burden that family's debt is relative to their income.
DSR=monthly loan payments/monthly gross income
Lower the better
desirable<.35

Front 28

Chapter 7 bankruptcy

Back 28

Straight Bankrupt; person's assets given to trustee to be sold-distributed to creditors

Front 29

Chapter 13 bankruptcy

Back 29

Wage Earner Plan; develop plan to pay off (over 3-5 years)

Front 30

Consumer debt

Back 30

charge accounts-nonrevolving (fixed term), revolving.
Installment loans (fixed term)
Single payment loans (30 day, 90 day note)
Credit Cards-nonrevolving or revolving

Front 31

Mortgage debt

Back 31

first mortgage
second mortgage-equity installment loan
equity credit line

Front 32

Objective Benefits of Credit

Back 32

During high inflation times, it may be cheaper to buy now
Sometimes tax advantages of buying on credit
Sometimes price discounts when using credit
When traveling abroad, better exchange rate

Front 33

Subjective Benefits of Credit

Back 33

obtaining expensive goods now while spreading out payments.
Convenience of purchasing and record keeping
Safety and security of not carrying large amounts of cash

Front 34

Objective Costs of Credit

Back 34

low inflation, it will be more expensive
Sometimes price increases with credit purchase
increasingly common application fees, membership costs.

Front 35

Subjective Costs of Credit

Back 35

Risks of overspending and impulse buying
psychological distaste for owing money
with variable rate credit, greater risk of paying more

Front 36

Your credit card company must send you a notice before they can

Back 36

increase your interest rate
change certain fees that apply to your account.
make other significant changes to the terms of your card.

Front 37

Your credit card company must send you a notice before they can

Back 37

increase your interest rate.
change certain fees that apply to your account.
Make other significant changes to the terms of your card.

Front 38

The company does not have to send you a 45-day advance notice if

Back 38

you have variable interest rate tied to an index, if the index goes up, the company does not have to provide notice before your rate goes up.
your introductory rate expires and reverts to the previously disclosed "go to" rate.
Your rate increases because you are in a workout agreement and you haven't made your payments as agreed.

Front 39

Your monthly credit card bill will include

Back 39

How long it will take you to pay off your balance if you only make...
How much you would need to pay in order to pay off your balance.

Front 40

No interest rate increases for the first year. Exceptions:

Back 40

If your card has a variable interest rate tied to an index, your rate can go up whenever the index goes up.
If there is an intro rate, it must be in place for at least 6 months; after that your rate can revert to the "go to" rate the co. disclosed when you got the card.
If you are more than 60 days late in paying your bill.
If you are in a workout agreement and you don't make your payments.

Front 41

Restrictions on over-the-limit transactions

Back 41

You must tell your cc co that you want it to allow transactions that will take you over your credit limit.
Otherwise, if a transaction would take you over your limit, it may be turned down.
If you don't opt-in to over-the-limit transactions and your cc co allows one to go through, it cannot charge you an over-the-limit fee.

Front 42

Caps on high-fee cards

Back 42

If your cc co requires you to pay fees cannot total..

Front 43

Protections for underage consumers

Back 43

If you are...you will ned to show that you are able to make payments, or you will need a cosigner, in order to open a cc account.

Front 44

No 2 cycle credit card billing

Back 44

cc co can only impose interest charges on balances in the current billing cycle.