Chapter 2- Financial Lifecycle

Question 1

What is a want?

Answer 1

An item we would like to have but is not essential to survive.

Question 2

What is a need?

Answer 2

An item we cannot do without in order to survive.

Question 3

Financial Lifecycle:

Answer 3

A series of stages which most people pass through during their life. Each stage has different financial goals, income and spending.

Question 4

Stages of the financial lifecycle are:

Answer 4

Childhood (0-12), Teen/ Young adult (13-20), Starting career (20-30), Setting up a home (25-35), Growing career and family (30-65), Retirement (65+).

Question 5

Stage 1 Income&Expenditure:

Answer 5

Gifts, pocket money

Sweets, toys.

Question 6

Stage 2 Income&Expenditure:

Answer 6

Part-time job, pocket money, gifts

New phone, socialising, designer clothes.

Question 7

Stage 3 Income&Expenditure:

Answer 7

Job, overtime, extra (babysitting)

Rent, food, travel.

Question 8

Stage 4 Income&Expenditure:

Answer 8

Job, gifts, overtime

Mortgage, bills, food.

Question 9

Stage 5 Income&Expenditure:

Answer 9

Job, commission, child benefit

Child expenses, bills, family car.

Question 10

Stage 6 Income&Expenditure:

Answer 10

State/ Private pension, interest on savings, winning lotto/ bingo

Bills, food, travel.

Question 11

Financial goal(s) for:

Answer 11

Stage 1, 2, 3, 4, 5, 6?