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Personal Finance > Learning Aim A > Flashcards

Learning Aim A Flashcards

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1
Q

Account statement

A

A record of your activity over a specific period of time

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2
Q

Unit of account

A

You exchange money for an equivalent value of goods

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3
Q

Means of exchange

A

Buy, sell or exchange

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4
Q

Store of value

A

It can be stored e.g banks

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5
Q

Legal tender

A

National currency of a country an official method of payment

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6
Q

Personal attitudes

A

Towards risk and rewards

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7
Q

Life stages

A

Moving houses or made redundant

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8
Q

Culture

A

Religious belief and ethical principles

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9
Q

Life events

A

Moving house or made redundant

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10
Q

External factors

A

State of economy or availability of jobs

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11
Q

Good credit rating

A

Will be able to borrow money

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12
Q

Advantages of planning expenditure

A

Not spending money on unnecessary goods
Means you are able to save money
Savings can be used to fund purchases and unexpected expenses

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13
Q

Risks of not planning expenditure

A

Can get into debt
Have insufficient funds
Poor credit rating/ can affect your ability to borrow money
Legal action taken against you/ can lead to repossession
Not able to save in the future

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14
Q

Something that is owned or due

A

Debt

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15
Q

Costs

A

An amount to pay or buy or use a good service

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16
Q

Repossession

A

To retake possession of something

17
Q

Insurance

A

An agreement providing guarantee of compensation for specific loss of damage

18
Q

Bankruptcy

A

Not having enough money to repay outstanding debts

19
Q

Credit rating

A

Estimate the ability of a person to fulfil their financial commitments

20
Q

Solvent

A

The ability to meet day by day expenditure

21
Q

Inflation

A

Price of goods is rising consequently the purchasing power of the currency is falling

22
Q

Cash

A

Used to exchange goods, debt or service

23
Q

Advantages of cash

A

Easier to budget your money
Doesn’t get you into debt

24
Q

Disadvantages of cash

A

Cash can be easily lost/stolen
May have an emergency but not enough cash to cover costs

25
Q

Cheques

A

An order to a bank to pay a stated sum from the drawers account

26
Q

Advantages of cheques

A

If cheques lost it doesn’t matter as the money won’t be lost
Only the names recipient can receive the money

27
Q

Disadvantages of cheques

A

It takes three working days to transfer money
Not many shops accept them
It can easily be tempered with which leads to fraudulent payment transactions

28
Q

Debit card

A

A card that has your own money on

29
Q

Advantages of debit card

A

Don’t have to carry cash around
If card is stolen nobody can use it without the pin
Keeps your money safe

30
Q

Disadvantages

A

If you forget your pin you won’t be able to use the card
Risk of the card holders overspending

31
Q

Credit card

A

It’s a card that has your money and you can borrow funds

32
Q

Inflation

A

The rise in general price level in an economy measured by CPI

33
Q

Credit card

A

A physical payment card that allows you to get credit from a financial institution

34
Q

Advantages of credit card

A

Can spread costs over period of time in instalments

35
Q

Disadvantages of credit cards

A

Limited use
Extra fees
Can get trapped in debt

36
Q

Cheque

A

Is an order to bank to pay a stated sum from the drawers account, written in a specially printed form

37
Q

Advantages of a cheque

A

Can be traced, if lost
Can be drawn at any time
Less risk of miscounting

38
Q

Disadvantages of a cheque

A

Are not legal tender and creditors may refuse to accept it
Can be time consuming to process
May be valueless of the drawer has no funds in their account

Personal Finance (2 decks)

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