In this week's readings I learned about different types of insurances. I learned about automobile insurance which covers damage to insured vehicles when you get into an accident, credit insurance which is a less common form of insurance that protects a loan or mortgage if the person for some reason can't make payments, and homeowners' insurance which covers cost to rebuild or repair damages to the home from things like water, wind, or hail, and pays to replace personal possessions lost to theft, storms, fires, or other disasters. Some other insurances include Health insurance which of all insurance options usually cost the most and the biggest necessary form of insurance because depending on your plan it can help pay medical bills for accidental injuries or medical procedures, along with pay a portion of the cost for basic health check ups and medications, disability income insurance which helps cover policy holders who become unable to work either temporarily or long-term and usually pays 60-80% of their paycheck, and life insurance which is a contract between insurers and policy holders that determines the sum of money paid to beneficiaries upon the insurer's death. The last type of insurance I read about was long-term care insurance which provides benefits for in-home care, nursing home, assisted living, and other types of long-term care not covered by Medicare insurance. 

I also read about the important parts of personal budgeting. A budget is a financial plan made up of what is made and what is spent in a month. The most important aspects of a personal budget is the amount of money coming in and the amount of money going out. A list of income earned along with a list of expenses such as rent, car payments, and household bills will tell you how much you make and how much of that is spent on necessary or fixed expenses each month. Being aware of unnecessary or variable expenses such as entertainment, food, or subscriptions is also important. If you can save money by paying attention to the brands or types of food you buy or by cancelling any subscriptions of music or television that you can live without it is important to do in order to save for emergencies, pay off debt, and maximize on the benefits of personal budgeting. 

The third thing I learned from this week's readings was the difference between planned and impulse buying. Planned buying is when a purchase is made by someone who put thought into the purchase before buying. They may have considered different brands or prices in order to make the best decision for their situation. Impulse buying is when someone walks into a store and purchases an item without thinking about the possible consequences. Displays at the front of the store or items placed near the checkout are where many impulse buys take place. Online impulse buying can also happen when a person purchases something from a website without looking at other similar items or fully considering the purchase. Add-on savings and discounts applied at an online checkout are also a place where many people make impulse purchases. 

 

Reference:

Goldsmith, E. B. (2016). Consumer economics : Issues and behaviors. ProQuest Ebook Central

       https://ebookcentral.proquest.com