Ch 9- Saving Flashcards
1
Q
Saving
A
Choosing not to spend all your money , easy to access, low risk and reward
2
Q
Reasons for saving
A
Future expenditure
Emergencies
Family events
Retirement
3
Q
Factors to consider when saving
A
Risk Rewards Liquidity Taxation Convenience Future benefits Terms and Conditions
4
Q
Principal
A
Money invested
5
Q
Investing
A
Putting money aside to get a return on it in the future
6
Q
Liquidity
A
How fast we get our money back when we want it
7
Q
Interest
A
Reward given by financial institutions for saving money
8
Q
Simple interest
A
Principal x rate x time
9
Q
Compound interest
A
Added interest earns interest
10
Q
Dirt
A
Deposit interest retention tax
11
Q
Dirt is
A
Tax collected by the government on interest earned on money invested in a financial institution
