Topic 2: The Personal Life Cycle Flashcards
Aspirations
Things or experiences that people would like to have in the future.
Assets
Things that a person or business owns.
Bank rate
Interest rates the Bank of England uses when it lends to other banks. Financial service providers take account of the Bank Rate they decide how to set interest rates on their own products
Demographic changes
Changes to the size and structure of the population
Economic boom
A period when the country is producing and selling an increasing amount of goods and services.
Interest rate
The amount, expressed as a %, 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 in. Investments are a way of saving over the medium or long term.
Life assurance
A type of insurance policy that pays out a sum of money if they 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 (for instance they might die at an early stage) and not everyone passes through the stages at the same time.
Life expectancy
The number of years that people are expected, on average, to live, based on the year in which they are born.
Mortgage
A loan taken out to pay for a property, usually over a long term such as 25 years
National Insurance contributions
Money deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits.
Needs
Things that people need to survive, such as food, basic clothing and a place to live.
Office for National Statistics
The independent organisation that produces statistics on many aspects of life in the UK, such as employment, health, how long people live for in different areas of the country, housing etc.
Pension
An income that people receive after retiring from work. In the UK, people receive a pension from the state; some people also receive pension payments from schemes run by their former employers or arrangements that they have made for themselves.
