UGBA 96 Final Exam Study Guide 2023

UGBA 96 Final Exam Study Guide 2023 spending on experiences versus things more happiness for spending on experiences spending on smaller things versus bigger things better to spend on many smaller things you enjoy than fewer bigger things spending versus time find ways to get more time pay now, consume later spending on yourself versus others more happiness for spending on others hedonic treadmill people return to relatively stable level of happiness, despite major positive or negative events 3 ways people misjudge their purchases 1. people mispredict what will make them happy 2. how happy it will make them 3. how long the happiness will last first financial line of defense when something goes wrong use your emergency fund, NOT credit card big emergencies (house burning down, car accident, etc.) will need insurance health insurance everyone should have it, employers often provide or can purchase on individual market homeowner's insurance -if you own a home, or mortgage, almost certainly already have homeowner's insurance auto insurance -legally obligated to buy auto insurance when you buy a car -state mandated insurance minimums will not be enough if you cause a big accident, they will also not pay you if you get hit by an uninsured driver *If you need to save money, increase your deductible, do NOT lower your liability limit life insurance if someone else depends on your income, you need it if not, then not necessary buy a term policy, not a cash value policy disability insurance if you are working and not approaching retirement age, you need this insurance for small stuff do not insure small stuff like TV, fridge, etc. recommend against buying extended warranties on consumer products what losses are suited for insurance -Large losses/expensive -unlikely -predictable in frequency -not connected to each other correlated risks