Personal Life Cycle (Financial Needs)

Question 1

Pre-school (childhood)

Answer 1

Relatives may save money for the child if they have any spare income.

Question 2

during School (childhood)

Answer 2

May receive pocket money to spend on wants. Needs and some wants met by Parents. Relatives may put money into savings for the child’s future.

Question 3

Adolescence

Answer 3

Income may include an allowance from parents or guardians and earnings from a part-time job. If they leave home, they will become responsible for paying for their needs as well as their Wants. Likely to save for aspirations such as driving lessons in the future, maybe buying a car.

Question 4

Young Adult

Answer 4

When they leave home, they will become responsible for paying for their needs as well as them wants, e.g., rent, household bills, food and travel. They may need to take out a loan to pay for further education or Training. If they find a job, they will have earnings although these might be low. If not, they will receive Benefits. May find it difficult to save.

Question 5

Middle Age (mature)

Answer 5

Career promotions, Career changes, Marriage / civil, partnership, Children, Buys property, Buys a car, Travels abroad.

Question 6

Middle Age (late)

Answer 6

Children leave home, Pays off mortgage and
other debts, Early retirement.

Question 7

Old Age (retirement)

Answer 7

Income may be the state pension and any other pension arrangements they have made while working. They may supplement there income with a part-time job. If their health is poor, they may need to pay for a care home.

Question 8

Old Age (End of life)

Answer 8

People may buy a life assurance policy to repay debts and pay money to their dependents when they die. They may pre-pay for their funeral.