Personal Life Cycle

Question 1

The Personal Life cycle

Answer 1

The changes in income experienced at key stages in a persons life e.g. Childhood (0-12), adolescence (teenagers), Young adult, Middle adult ( middle age), late adult (old age, Pensioner).

Question 2

Income

Answer 2

total money received by a person from salary or wages, interest or dividend.

Question 3

Borrowing

Answer 3

obtaining finance from a lender that will need to be repaid in the future e.g. mortgage, car loan.

Question 4

Savings

Answer 4

putting some of your wages or salary aside for later use e.g. in a savings account or by investing in stocks and shares or 5 or 10 year savings plan.

Question 5

Retirement

Answer 5

the time in the personal life cycle when you stop working and depend for income on your retirement fund in a pension. Or continue to work if it’s not enough- semi-retired

Question 6

Benefits

Answer 6

regular payments from the government to support people who are unemployed or in need.

Question 7

Working Tax Credit

Answer 7

Working Tax Credit is based on the hours you work and get paid for, or expect to be paid for. You can claim whether you’re an employee or a self-employed person. But unpaid work doesn’t count for Working Tax Credit

Question 8

Child Tax Credit

Answer 8

Child Tax Credit is paid to you if you are responsible for at least one child or young person who normally lives with you. You don’t have to be working to claim Child Tax Credit

Question 9

Taxes

Answer 9

a fee paid to government for a product, income or activity e.g. Income tax, value Added Tax (VAT) Corporation tax