Roles Of Money

Question 1

Personal attitudes towards risk reward, borrowing spending and saving

Answer 1

Different individuals are going to have different attitudes to money, some may be risk averse so not willing to take risk and would rather save, some will be more likely to take risks. This can depend on your family’s attitude to money.

Question 2

Life stages

Answer 2

childhood, adolescence, young adult, middle age, old age) each one of these key stages as a financial stage

Question 3

Childhood life stage

Answer 3

More reliant on parents for money don’t really have a financial situation

Question 4

Adolescence

Answer 4

-Will be more independent
- less reliant on parents

Question 5

Young adult

Answer 5

START OF BIG FINANCIAL PURCHASES

• buying a car
• going to uni
• renting flat
  -looking to settle down

IMPLICATIONS
- may need student loan
-borrow money
-might take out a mortgage
- earning money
-will have credit or debit cards

Question 6

Middle age

Answer 6

FINANCIAL NEEDS

-Will support family
-saving money for children
-improve lifestyle
-spending on luxury’s

IMPLICATIONS
-will have savings account
- pay their mortgages off
-planning for retirement

Question 7

Old age

Answer 7

Financial needs-

Old age starting to retire
Thinking about retirement homes

Implications-
Pension

Question 8

Life events

Answer 8

Different events that will occur in your life impact your attitude towards money and won’t be within your control - for example going on holiday getting married, going to university, illness, financial losses, getting made redundant going into debt, job opportunities, loosing your job

Question 9

External influences/ trends and the financial related effects

Answer 9

There are also factors outside your control that could affect your attitudes towards money. Example, how stable is the economy?, how many jobs are available?, what is the prices of the goods or services?, have they increased or decreased?, how much TAX do you need to pay?

Question 10

Interest rate

Answer 10

Interest rates, is the cost of borrowing money or it could also be the reward of saving money. The increase or decrease in Interest rates will affect your attitude to spending. If they are low, then you may be willing to spend more money. If they are high you are going to be more likely to save money and spend less.

Question 11

Cost of borrowing versus reward of saving

Answer 11

Intrest in the cost of borrowing money where as if you save your money in the bank they will give you a percent of added intrest depending on how much money you have stored in your savings