key terms Flashcards
Aspirations
Things or experiences that people would like to have in the future
Assests
things that a person or a business owns.
for a person, their assets may include property, jewellery or company shares
Bank rate
-the interest rate that the bank of England uses when it lends money to other banks.
-Financial services providers take account of the bank rate when they decide how to set interest rates on their own products
Demographic changes
Changes to the size and structure of the population
Economic boom
A period when the country is producing and selling an increasing amount of goods and services
Interest rate
The amount, expressed as %, that a financial services provider charges a borrower when it lends money, or pays to a saver
Investments
Money paid into financial products.
The aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in.
Investments are a way of saving over the medium or long term
Life assurance
a type of insurance policy that pays out a sum of money if the insured person dies
Life Cycle
the stages through which people pass between birth and death including:
- teenage years
- young adult
- mature adult
- old age
not everyone passes through all stages (death) or not at the same age
Life expectancy
the number of years people are expected to live on average based on the year they were born in
National insurance contributions
money deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits
Needs
Things that people need to survive
e.g. food, clothing and place to live
Office for National Statistics
the independent organisation that produces statistics on many aspects of life in the UK
e.g. employment, health, housing
Pension
an income that people receive after retiring from work
in the UK people receive a pension from the state or some from their former employers.
Recession
a period of at least 6 months when the amount of goods and services the country is producing is shrinking
