1.3 Satisfying Needs, Wants And Aspirations Flashcards
What are medium term and longer term savings?
Financial products that allow people to save over a longer period = >3 years
Why do people use medium / longer term savings?
So they can out money away to cover future needs and wants, and to fulfil their aspirations
Where offers long term savings accounts?
Banks and certain other providers
Why do people invest?
To save fora longer term want / aspiration
What is an investment?
A longer-term form of saving
How is an investment different to a long term saving product?
It is riskier but can bring a higher return.
Why might a parent want to save money in an investment scheme while their children are young?
So they can help them with their education later
Why do people use pension schemes?
To save for their retirement
What is longer term borrowing?
When people borrow money to finance a large purchase, they need to pay it back over a long period, otherwise they cannot afford it.
Give an example of a purchase that requires long term borrowing
Mortgage
Where provides insurance policies that cover long term risks?
Insurance companies / banks
