Finance Topic 2: The Personal Life Cycle

Aspirations
Things or experiences that people would like to have in the future, for example owning a home instead of renting.
1 of 22
Assets
Things that a person or business owns.
2 of 22
Bank Rate
The interest rate the Bank of England uses when it lends money to other banks.
3 of 22
Demographic Changes
Changes to the size and structure of the population.
4 of 22
Economic boom
A period when the country is producing and selling an increasing amount of goods and services.
5 of 22
Interest rate
The amount, expressed as a percentage, that a financial services provider charger a borrower when it lends money, or pays a saver.
6 of 22
Investements
Money paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in. Investments are a way of saving over the medium or long term.
7 of 22
Life assurance
A type of payment policy that pays out a sum of money if the insured person dies.
8 of 22
Life cycle
The stages through which people pass between birth and death.
9 of 22
Life expectancy
The number of years that people are expected to live, on average, to live, based on the year they are born.
10 of 22
Mortgage
A loan taken out to pay for a property, usually over the long term.
11 of 22
National Insurance contributions
Money deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits.
12 of 22
Needs
Things that people need to survive, such as food, basic clothing and places to live.
13 of 22
Office for National Statistics
The independant organisation that produces statistics on many aspects of life in the UK such as employments, health, housing etc.
14 of 22
Pension
An income that people receive after retiring from work. in the UK, people receive a pension from the state; some people also receive pension payments from schemes run by their former employers or arrangements that they have made for themselves.
15 of 22
Recession
A period of at least six months when the amount of goods and services the country is producing is shrinking.
16 of 22
Redundancy
Losing a job because the business no longer needs, wants or can afford that job to be done.
17 of 22
Risk Averse
Reluctant to take any kind of risk.
18 of 22
Risk tolerant
Willing to take risks.
19 of 22
Shares
Investments that represent part ownership of a company.
20 of 22
Wants
Things that people would like to have but can survive without.
21 of 22
Will
A legal document setting out what a person wants to happen to their assets after their death.
22 of 22

Other cards in this set

Card 2

Front

Things that a person or business owns.

Back

Assets

Card 3

Front

The interest rate the Bank of England uses when it lends money to other banks.

Back

Preview of the back of card 3

Card 4

Front

Changes to the size and structure of the population.

Back

Preview of the back of card 4

Card 5

Front

A period when the country is producing and selling an increasing amount of goods and services.

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »