Chapter 1 - Your Financial Life Cycle Flashcards
What will you learn in Business?🤑🤑🤑
To Grow Income Manage your spending Protect your savings Understand the services available from banks Borrow wisely and minimise your debts Reduce financial risk with the right insurance Reduce your tax bills Provide financial security Provide an adequate retirement income
What is the financial life cycle??
A financial life cycle is a series of stages which most people pass through during their lives. Each stage is different in terms of financial goals, income, spending and risk
Explain ‘Childhood (0-12)’ as if it was apart of the financial life cycle.
Living at home
Parents provide food,clothing
Receive pocket money
Explain ‘Teenage and Young Adult’ as if it was apart of the financial life cycle.
Still living at home
Gifts + Pocket money
Parents provide food and clothing
Possibly the odd jobs
Explain ‘Starting a Career (30-35)’ as if it was apart of the financial life cycle.
First full-time jobs Earning own income Paying income tax Buy own clothes and food Start saving Move out
Explain ‘Setting up a New Home (25-35)’ as if it was apart of the financial life cycle.
Buying a new home
Getting Married
New furniture, appliances
Explain ‘Growing a Career and Family (30-65)’ as if it was apart of the financial life cycle.
Have children
Buy food for kids and self
Buy clothes for kids and self
Lots of bills
Explain ‘Retirement (65 onwards)’ as if it was apart of the financial life cycle.
Retire from work
Get a pension
What is a Pension??👴🏼👵🏼
A financial product that pays out money to people who have retired from work
List 2 potential sources of income people can have when they start their career.
Wages and Salary
Profits from own business
