Topic 1 Flashcards
Affordability
An important concept in helping people to choose financial products, based on budgeting and forecasting to help individuals decide what they can afford to spend
Aspirations
Things or experiences people would like to have in the future, e.g. owning a home, luxury holiday or a sports car
Attitudes
People’s thoughts and feelings, at a given time and place, about another person, event or issue. Usually general and limited to socially significant events, can be changed by circumstances, events, experience or advice.
Beliefs
Specific and detailed personal convictions about how things are. Can be religious but also otherwise, and can be ‘absolute’ (A is acceptable but B is not) or ‘causal’ (cause A leads to effect B)
Capital
The money or other assets owned by an individual or a business. In the case of financial service providers, it refers to finds provided by shareholders, not customer deposits
Consumer Credit
Another term used for borrowing.
Credit card
A card that allows face-to-face, telephone or online purchases, and ATM withdrawals. Instead of being taken from the holder’s own account, the provider pays for the transactions. Card holder repays amount in one payment or instalments - provider charges interest etc.
Culture
A society’s set of norms about behaviour and attitudes across social groups - what society constitutes to be acceptable and unacceptable
Deposit
A sum of money placed by a customer with a financial services provider
Distribution Channel
The medium through which information is transferred to its intended recipient, e.g. email, telephone. Refers to the way a customer can contact their provider and manage their account. Also called communication channel.
Ethical Investing
Someone choosing to save in a way that the money will be used in what the person considers to be good purposes.
Feedback effect
The notion that thoughts and feelings have a direct influence on behaviour - as expectations can be self fulfilling, people’s attitudes affect event outcomes
Hire Purchase
A type of secured consumer credit to finance items such as cars and furniture, which involves the borrower repaying over a number of years
Investments
Money paid into financial products, the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in.
Life Assurance
A type of insurance policy that pays out a sum of money if the insured person dies
Life Cycle
The stages through which people pass between birth and death, including childhood, teenage years, young adult, mature adult and old age. Not everyone passes through all stages, or at the same ages.
Marketing
Advertising, selling, delivering products to customers. Everything a company does to acquire customers and maintain a relationship with them, including promotion and PR.
Mortagage
A loan taken out to pay for a property, usually over a long term, e.g. 25 years
Needs
Things that a person needs to survive, such as food, basic clothing and somewhere to live
Peers
Our equals - people in the same position as us, for instance of the same age
Pension
An income that people receive after retiring from work. In the UK state pension is provided, other pension payments from employment schemes or their own arrangements.
Personal loan
A product that allows someone to borrow a fixed amount over a fixed period at a fixed amount of interest
Product placement
An aspect of PR involving a product appearing in a TV show or a film
Promotion
Paid for marketing activities, including advertising. Includes all activities that aim to communicate, inform people of goods and persuade to buy.
