Personal Finance: Decision Making
endorsement
allow check to be deposited
5 step process
balance needs/wants basic or life enhancing you or collectively influences marketing stragegies
needs vs wants
basic better basic personal preference collective good
commercial banks
convenient but high fee
Decision Model
define problem get accurate info compare alternatives choose one take action
short term goals
emergency, vacation, social events
brokerage firm
focuses on mortgages
savings
for expected and unexpected
certified check
guaranteed by the bank
promo techniques
holiday decor samples discounts punch cards labelling
long term goals
home ownership, education, retire, invest
compound interest
how to get rich; find a bank that compounds often
mutual fund
investing in multiple stocks; less risk
certificate of deposit
not liquid, high interest
cherry pickers
only buy the discount items
credit union
run by members and require membership
selecting the right bank
safety liquidity convenient high rate of return
loss leaders
sale (hope you stay and buy other things)
open a checking account
signature card and ID
SMART goals
specific measurable actionable realistic timed
types of checking accounts
standard interest bearing share draft
ATMs
started in the 80s
depository
the ability to put money in and take money out
cashiers check
written on banks funds
