Managing Your Money

Question 1

Financial Planning

Answer 1

a process for ensuring you plan when you will need a large sum of finance and for stages in your life cycle when you may have no money unemployment

Question 2

Budgeting

Answer 2

a plan of your future weekly, inflows of finance and the outflows of finance to identify under and overspending

Question 3

A financial adviser

Answer 3

a person who has knowledge of financial product and can help with financial planning Try to use an Independent financial adviser

Question 4

Debt Management

Answer 4

using the help of an expert to solve a debt problem e.g. Citizens advice

Question 5

Debt Management Plan

Answer 5

a structured repayment plan to meet your debts and so you are able to have some finance to live and meet your basic needs

Question 6

Ethical lending policy

Answer 6

loans will only be made to businesses that act in a socially responsible manner

Question 7

Ethics

Answer 7

the rights and wrongs of an issue

Question 8

Ethical issues to do with saving

Answer 8

Should you save with an institution that has a purely profit motive and will give you the highest return (interest) or should you save at an institution that has an ethical lending policy?

Question 9

Ethical Issues to do with borrowing

Answer 9

Should you borrow if you cannot repay the money?
Who should you borrow from?
It depends on your credit rating. Those with a good rating can borrow from a reputable bank others may look to a loan shark – these are illegal.

New borrowing companies are springing up offering ‘pay day’ loans e.g. Wonga these offer high interest rates and are not advised