Topic 3 - Planning For Now And For The Future Flashcards
What is a pesonal objective?
What the individual wants or needs.
What is a financial objective?
How much money do they need in order to achieve their personal objectives.
What is short-term planning?
Up to 12 months, mainly revolves around budgeting. EG: Christmas, or car insurance renewal.
What is Medium-term planning?
Between 1 and 5 years. Includes things that takes a reasonable a mint of time to save up for. EG: saving for a deposit on a house or flat, saving for a wedding ect.
What is long term planning?
5 years or longer, looks forward to different stages of a person’s life cycle. EG: Retirement or middle age.
What is a deposit account?
A saving account that pay back interest on the amount of money you deposit. It’s considered safe, because if the bank collapses the government will pay you back everything you had in the account up to £75,000.
What is an instant access account?
A savings account where the saver will receive an interest payment (AER) on their savings a
