1.11-1.16 Flashcards
What are the two federal government commissions largely responsible for assisting consumers?
1) Australian Securities and Investments Commission (ASIC)
2) The Australian Competition and Consumer Commission (ACCC)
Aim of ASIC?
To assist in reducing frauds (scams/rip-offs) in financial markets and financial products
What does redress mean?
The compensation for setting something right
Is it possible for consumers to get a refund from stores that have a no refund policy?
Yes, it is possible if the good was damaged before-hand or is not functioning normally for it’s specific use.
What is a tribunal?
A tribunal was formed in 2014 and deals with a broad and diverse range of matters, including consumer claims, tendency issues, building works, equal opportunity, and administrative review of government decisions.
What does the tribunal have the power to do when resolving disputes?
The tribunal has the power to
- order that money owed does not have to be paid
- order for goods or services to be provided
- order faulty goods be fixed or replaced
- order a refund and goods to be returned
Personal Consequences for poor financial management?
- unable to satisfy one’s own needs
- inability to maintain lifestyle choices
- repossesion of personal properties
- accumalation of excessive debt
- possibly bankruptcy
Social Consequences for poor financial management?
- relationship tensions or breakdown
- social isolation through inability to afford cost of social activities
Legal Consequences for poor financial management?
- garnishee of your wages or bank accounts, which is a court order that allows an employer or bank representative to take money from your wages or accounts and then give it to your creditor
- writ of execution, a court order that allows a court official (the sheriff) to seize and sell some of your property which the money gained from that is then used to pay your debts
- bankruptcy , where a person gives up complete control of their assests either voluntarily or by a court order and in exchange is given protection from their creditors
What is debt?
Money that you owe to an external source for instance the bank
What is bankruptcy?
When a person gives up control of their assests of finances either voluntarily or throuhg a court order
Who is the creditor?
What is writ of execution in court?
What are assests?
When are you considered bankrupt?
You are considered bankrupt until the Federal Court of Australia issues a sequestration order. Only people can become bankrupt. A company is instead liquidated.
What is a sequestration order?
It is a court order which separates the debtor from his or her assets
What is liquidated?
When all the assets are sold in order to pay its debt.
What is superannuation?
Superannuation ( aka super ) is money that is put aside and saved while you’re working.
What is a superannuation fund?
A superannuation fund is a compulsory savings account where, each time you are paid your income your employer will allocate a percentage of your income to the account.
What are fixed expenses?
Expenses that are the same amount every time
What are variable expenses?
Expenses that can change over time depending on circumstances.
What are the steps to creating a budget?
Step 1) Record your expenses
Step 2)Record your expenses
Step 3)Total your expenses
Step 4) Compare your total income with your total expenditure
Step 5) Asses your financial position
What is a trade union?
Organisations that represent employees and try to improve their wages and working conditions.
What is a barter?
Swapping or exchanging one good for another
What is an electronic transfer, and what are the different types?
The transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff
Different types include:
1) Visa PayWave and Mastercard Paypass. Allows under 100 payments with a simple tap
2) Smart apps: Google pay, Apple pay, etc
