Learning Aim A Flashcards

1
Q

Unit of account

A

something that can be used to value goods and services, record debts, and make calculations. Allows the value of items to be compared

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2
Q

Culture

A

Culture allows people to spend money as it’s a time to celebrate.
“The way of life”

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3
Q

Life events

A

Something important that happens in your life
Birthday- the income of money allows a person to spend

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4
Q

Life stages

A

The stage that people are at in their life
Childhood, adolescent, old age

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5
Q

Interest rates

A

The cost of borrowing

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6
Q

Personal attitude

A

People own attitude towards money

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7
Q

External influences and trends

A

Something of which you have no control- eg economy

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8
Q

Means of exchange

A

Money allows the good of services to be traded without the barter system

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9
Q

Store of value

A

Can refer to any asset whose value can be used now or used in the future. I.e. value can be retrieved at a later date. People can save now and fund later

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10
Q

Legal tender

A

A legally recognised form of payment that is backed by the government

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11
Q

Solvent

A

You have the ability to meet financial obligations.

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12
Q

avoid debt

A

knowing the money going in and going out of your account to avoid overspending and getting in debt

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13
Q

control costs

A

planning expenditure you are aware of expenses and control costs by making adjustments to finances

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14
Q

legal action/ repossession

A

a consequence of not planning expenditure is that you could overstretch your finances and become unable to p-ay bills

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15
Q

credit ratings

A

a credit rating is how trustworthy you are in terms of paying off debts . good money control etc. this will help to borrow money in the future

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16
Q

bankruptcy

A

this means you are unable to pay debts. you can declare bankruptcy, however, there will be other consequences and any assets will more likely be taken away from you.

17
Q

manage money

A

managing finances will allow you to avoid borrowing and avoid debts

18
Q

income and savings generation

A

money you have saved from planning your finances can be put to work for you in the form on investments to generate further income.

19
Q

insurance against loss or illness

A

planning expenses and having some set aside for unsees circumstances will give you peace of mind that if you lose your job or become ill you’ll have money to cover expenses over a period of time

20
Q

overdraft

A

lets you borrow money through your current account by taking out more money than you have in the account

21
Q

personal loan

A

allows you to borrow a fixed amount of money, which you pay bank in monthly instalments over a set period of time

22
Q

hire purchase

A

paying to use an asset in instalments, to spread the cost. the asset will remain the property of the seller until the final payment is made

23
Q

mortgage

A

a long term loan. usually to buy property, it is secured against an asset and usually lasts roughly 25 years

24
Q
A