Managing Money

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  • Created by: Lucy1499
  • Created on: 03-05-16 18:47

Spending

Essential Spending - Something you need e.g. rent/mortgage/food etc.

Non - Essential Spending - Something you choose to buy e.g. CDs/games/smart phones/fashionable clothing etc. 

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Debit Cards

Debit Cards - Allows you to pay for goods electronically.

Pros:

  • Do not have to carry money around
  • Can only spend money in your account

Cons:

  • Risk of online fraud
  • Theft of card number etc
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Credit Card

Credit Card - Allows for spending of money which is 'loaned' to you.

Pros:

  • Can pay for larger more expensive items
  • Can be cheaper than borrowing

Cons:

  • The interest can be very large e.g. for each £100 you spend, you have to pay back £120 etc.
  • Temping to 'max' out on card
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How you can pay for things?

- Interest free credit = You pay in instalments e.g. buying a sofa from DFS paying a certain amount each month.

- Hire Purchase = Paying for a big item e.g. a car - you pay % interest on the total amount.

- Subscription = Paying for a service every month e.g. Union rates, magazines etc.

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