Topic 2 - The Personal Life Cycle

Question 1

Distinguish between the key stages of the personal life
cycle?

Answer 1

Birth - 0-2
Childhood - 2-5
Childhood (School) - 5-12
Teenager - 13-19
Young Adult - 18-25
Mature Adult - 25-40
Middle age - 41-54
Old middle age - 55-65
Old - 65 onwards
Death - can be anytime but usually after that age

Question 2

State all 5 life events?

Answer 2

LISHU
1.LOCATION - Based of where you live it can affect life events for example what stage they start and finish full time education
2.INCOME - Based of how much an individual or family makes can affect a life event as maybe certain may or may not being to move out at 18
3.STATUS - In certain stages in life your status can change this means certain life events that people experience
4.HEALTH - People with long term illness may not be able to experience certain life events at certain ages
5.UNFORSEEN CIRCUMSTANCES - These may effect status for example winning the lottery

Question 3

What are wants, needs and aspirations?

Answer 3

Wants - Things that individuals find desirable
Needs - Things that are necessities to individuals
Aspiration - What individuals would find desirable to achieve in the future

Question 4

State 5 External influences?

Answer 4

1.PHYSICAL RISK -
3.FINANCIAL RISK
4. RISK TO REPUTATION
5. ATTITUDES TO FINANCIAL RISK