Topic 2 Flashcards
Assets
Things that a person or business owns. For a person, their assets might include property, jewellery or financial products like company shares.
Bank rate
The interest rate that the Bank of England uses when it lends money to other banks. Financial services providers take account of the Bank rate when they set the interest rate of their own products.
Demographic changes
Changes to the size and structure of the population, such as an increase in the number of people over 65.
Economic boom
A period when a country is producing and selling an increasing amount of goods and services.
Interest rate
The amount, expressed as a percentage, that a financial services provider charges a borrower when it lends money or pays to a saver.
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. Investments are a way of saving over the medium/long term.
Life assurance
A type of insurance policy that pays out a sum of money if the insured person dies.
Aspirations
Things or experiences people would like to have in the future, such as owning a sports car
Life cycle
The stages through which people pass between birth and death. Not everyone passes through all stages, or at the same age.
Life expectency
The number of years people are expected to live, on average, based on the year when they were born.
Mortgage
A loan taken out to pay for a property, usually over a long term, such as 25 years.
Natural Insurance Contributions
Money deducted from the pay of people who are employed, and used by the government to fund state pensions and other benefits.
Needs
Things that a person needs to survive, such as food and basic clothing and shelter.
Office for National Statistics
The independent organisation that produces statistics on many aspects of UK life, e.g. employment, health, housing.
Pension
An income that people receive after retiring from work. In the UK, people receive a state pension, but some people also receive payments from schemes run by their former employers.
