aim a Flashcards
what are functions of money?
unit of account, means of exchange, store value, legal tender
what are roles of money?
personal attitudes, culture, external influences, life events, life stages, interest rates
life stages
childhood, adolescence, young adult, middle age, old age
financial needs at childhood
sweets, toys, and get the money from parents.
finance of adolescence
reliant on parents might look for a job.
finance of young adult
not reliant on parents, student loan, mortgage, car etc.
finance of middle age
has stable jobs, supports a family, paying into pension, paying mortgage etc.
old age
fewer dependent, no mortgage, income form pension
credit card
given by bank as a loan,
access to extra money, can be used online.
repay with interest, limited amount available.
debit card
money from personal account.
protection online can be used online
risk of fraud, potential to go into overdraft
prepaid cards
top up cards,
avoids overspending, good way to manage finance.
if lost cannot be overdrawn. cost money to set up
BACS
Electronic system to pay directly
instant payment in 2 hours, no additional cost
limited amount in a single transaction.
not offered by all the banks
CHAPS
payments to UK accounts that are guaranteed to arrive in 24 hours.
ISA
tax free interest payment, you get the interest paid on savings
can’t withdraw money for a limited amount of time, lower interest rates then saving accounts.
