Topic 2 key terms(the personal life cycle) Flashcards
Aspirations
definition:Things or experiences that people would like to have in the future
Assets
definition:things that a person or business owns
bankrate
definition:the interest rate that the bank of england uses when it lends money to other banks
demographic change
definition:changes to the size and structure of the population
economic boom
definition:a period when the country is producing and selling an increasing amount of goods and services
Interest rates
definition:the amount expressed as a percentage that a financial services provider charges a borrower when it lends money
Investment
definition:money paid into financial products the aim is that the product will
grow over time
life assurance
definition:a type of insurance policy that pays out a sum of money if the assured person does
life cycle
definition:the stages through which people pass between birth and death including childhood,teenage years,young adults,mature adult and old age
life expectancy
definition:the number of years that people are expected on average to live based on the year in which they are born
mortgage
definition:a loan taken out to pay for a property,usually over a long period of time
national insurance contributions
definition:money deducted from the pay of people who are employed or self employed and used the government to fund state pension and other benefits
needs
definition:things that people need to survive,such as food,basic clothing and a place to live
pension
definition:an income that people receive after retiring from work,in the uk there’s a state pension
recession
definition:a period of at least six months when the amount of goods and services the country is producing is shrinking
