Topic 2 - Personal Life cycle

Aspirations:
Things or experience that people would like to have in the future
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Assets
Things that a person or a business owns. example property
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Bank rate
The interest rate that the Bank of England uses when it lends money to other banks.
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Demographic changes:
Changes to the size and structure of the population.
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Economic boom
A period when the country is producing and selling an increasing amount of goods and services.
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Interest rate:
The amount, expressed as a %that a financial services provider charges a borrower when it lends money, or pays to a saver
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Investments:
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.
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Life assurance
A type of insurance policy that pays out a sum of money if the insured person dies.
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Life cycle:
The stages through which people pass between birth and death.
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Mortgage
A loan taken out to pay for a property, usually over a long term
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National insurance
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.
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Needs
Things that people need to survive, such as food, basic clothing and a place to live.
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Office for National Statistics
The independent organisation that produces statistics on many aspects of life in the UK such as employment, health, how long people live for in different areas of the country, housing, etc.
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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.
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Recession
A period of at least six months when the amount of goods and services the country is producing is shrinking.
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Redundancy
Losing a job because the business no longer needs, wants or can afford that job to be done; it is related to the needs of the business and not to how well or badly an individual does their job.
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Risk averse
Reluctant to take any kind of risk.
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Risk tolerant
Willing to take risks.
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Shares
Investments that represent part-ownership of a company.
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Wants
Things that people would like to have but can survive without, such as entertainment, fashionable clothes, etc.
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Will
A legal document setting out what a person wants to happen to their belongings (assets) after their death.
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Other cards in this set

Card 2

Front

Things that a person or a business owns. example property

Back

Assets

Card 3

Front

The interest rate that 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
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