Topic 1 money

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What is Income
Total moeny recievd from a person's wage s/salry, interest and dividends
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Getting money from a lender that must be repaid in the futture (e.g. a mortgage)
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Putting money aside for a later use
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Name the 5 stages and age range of the personal life cycle
Childhood (0-12), Adolescence ( teenagers), YoungAdult, Middle Adult ( middle age), Late Adult ( old age)
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Name the Key milestones
Leaving school/Gaining employment/Promotion/Unemployment
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Definition of leaving school
The point at which someone stops being looked after 24/7 by their parents and starts managing their own life. either go on to further education or find a job.
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Gaining Employment
If someone Is succesful in gaining qualifications,they will have a wider choice of jobs. The higher the level of qualififcation, the more likely they arwe to find a better paid-job, but they may have to chose between higher pay or enjoyable job
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If people work hard are are responsible, they may be promoted or find better pay employment. This is called promotion. this gives people the oppertunity to developskills, but it also allows them to take on greater finincial commitments
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If someone loses their job for some reason,they become unemployed. Unemployed peoplemay need financial help from the governmnet as they will no longer recieve a wage or salary
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When people reach the age of 60 for women rising to 65 in 2020 or 65 for men.
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Retirement contiuned
They can now cease paid work because they will recieve a state pension and possibly an additional pension from their employer
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Needs and wants
At all stages of the personal life cycle, incomes are likely to be limited.People have to decide between the purchases that are essential ( needs) and those that are not ( want)
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Decision making and oppertunity cost
As a result of scaricity everyone has to make choices. we cannot afford everything we want. As individuals, income gives us the ability to buy things we want.
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Decision making and oppertunity cost
A decision to go to university will involve high commitment of both time & money.Time that could have been spenteither working r going out with friends.However if somone gets a degree they are likely to earn more money in the future
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scarcity definition
Resources are limited compared with our needs and wants
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Choice definition
deciding between different options because our resources are limited
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basic economic problem
Resources are limted but needs and wants are infinite
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resources definiton
the land, labour, capital and enterprise used to produce goods and services
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oppertunity cost definition
Something given up when we make a choice
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Benefits definition
The advantage of a particular choice
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Costs definition
The exspenses and drawbacks of a particular choice
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Demand definition
The quantity of a good or service that consumers are willing and able to purchase at a particular price
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Factors affecting demand definition
Things that cause consumers to buy more or less of a product at a given price
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Supply definition
the quantity of a good or service that busines will offer for sale at a particular price
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Factors affecting supply definition
Things that cause suppliers to offer more or less of a good or service at a particular price
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Markets definition
A market exists whenever buyers and sellers come together
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Market price definition
The price that buyers and sellers agree on for a particular good or service
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Competition definition
The process of trying to beat others (e.g trying to gain more customers)
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Bank/Building soceity savings account definition
An account for which the main objectives is to gain interest and keep money safe
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Post office card account definition
Savings account offered by the post office
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ISA definition
Individual savings account on which intrest is tax free
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Interest rates definition
An anuual rate which is changed to borrowers or paid to savers
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Annual Equivalant Rate Definition
A figure quoted in savings advertisment to help people compare one savings product with another
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Unit trust definition
A pooled investment fund usually in shares-based investments
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Governments securities definition
Stocks, Bonds and bills of exchange issued by a government to raise funds
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Reward definition
The return recieved for taking risks
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Risk definition
The chance that something may not succeed and its consequence
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Stock market definition
The place where stocks,shares and bonds are traded
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Shares definition
Certificate representing a unit of ownership in a company
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Loan definition
Amount of money borrowed
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Term of a loan definition
The length of time over which the loan can be repaid
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Borrowing/debt/credit definition
Getting money from a lender that must be repaid in the future ( e.g a mortgage)
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Debt managment definition
Taking the help of an expert to solve a debt problem
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Debt managment plan definition
a structured repayment plan
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Social, moral or ethical dilemma definition
a problem with no absolute right or wrong solution
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Ethical lending policy definition
A statement that loans will only be made to business that act in a socially responsible manner
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Ethics definition
The rights and wrongs of an issue
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Financial planning Defintion
A process for ensuring that financial goods are met
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Budget definition
a financial plan of future income and spending
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Financial adviser definition
A professional offering financial advice
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Card 2




Getting money from a lender that must be repaid in the futture (e.g. a mortgage)

Card 3




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Card 4


Name the 5 stages and age range of the personal life cycle


Preview of the front of card 4

Card 5


Name the Key milestones


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