topic 2 - personal lifecycle (2)
- Created by: Hetal M
- Created on: 04-10-17 17:24
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- Topic 2 - Personal lifecycle
- attitudes to risk and financial choices
- physical risks = sports or health choices
- younger = more willing to take a risk
- older = keeping it safe
- once people are responsible for others (having a baby) = attitude changes
- emotional risk = trusting people
- minimising hurt by making an agreement = before marriage
- risk to reputation - bad credit = harder future
- financial risk = investing or gambling
- stocks and share prices rise and fall
- physical risks = sports or health choices
- attitudes to financial risk relate to the lifecycle
- risk can be influenced by the stage in your life cycle
- e.g. risk of sudden death = start paying for life insurance (mortgage payments are easier)
- risks can be more damaging in certain stages in life
- e.g. young and lose money = time to recover it
- e.g. old and lose money = not enough time (pension)
- greater financial demand when you get older = looking out for family
- less likely to borrow money
- risk can be influenced by the stage in your life cycle
- external influences on the lifecycle
- out of our control = e.g. interest rates
- impacts peoples ability to save for the future
- social trends = demographics
- lifestyle, attitudes and habits = e.g. marriage, migration
- economic trends
- producing and selling increasing amounts of goods = economic boom
- more jobs = lower unemployment rate = higher incomes
- recession = when a country's production falls for 2 quarters (6 months)
- unemployment rate rises = lower incomes = benefits withdrawn
- out of our control = e.g. interest rates
- attitudes to risk and financial choices
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