Topic 9 key terms(budgets and forecasting) Flashcards
aspirations
definition: Things or experiences that people would like to have in the
future,e.g-owning a home instead of renting
ATM
definition:Automated teller machine
balance
definition: Income minus expenses
budget
definition: A plan of expected incomings and outgoings over a set time
period such as a month
budget balance
definition: Total income minus total expenditure: a person’s net financial
situation
budget deficit
definition: situation in which outgoing exceed income
budget surplus
definition: A sum of money available once all the essential expenditure in a
given
cash flow forecast
definition: plan of expected incomings and outgoing over several time periods, such as the next three months
chancellor of exchequer
definition: The British Cabinet minister responsible for financial and
economic matters and in charge of the Treasury
consumer price index(CPI)
definition: One of the means the government uses to measure inflation,calculated by checking the price of a representative sample of goods on a monthly basis
credit history
definition: record of money borrowed and repaid by an individual,records are held by credit reference agencies and providers will check the individual’s credit history when a prospective
customer applies for a borrowing product
current account
definition: Bank or building society accounts where people can store their
money in the form of electronic balances and withdraw it to make payments
discretionary expenditure
definition: Voluntary spending on products and services that people want
now,and savings towards items they aspire to buy in the future
dividend
definition: A payment of profits from a company to its shareholders, often
at twice-yearly intervals
duty
definition: tax paid on certain items, including fuel, cigarettes and alcohol
essential expenditure
definition: Spending on items required to live, eg rent or mortgage
repayments, food and drink
income
definition: Earnings, savings and interest payments received within a certain time frame
income tax
definition: Tax paid on earnings from employment, self-employment and
interest on savines
inflation
definition: rise in prices, which means that the purchasing power of money falls
insurance
definition: Products that give financial protection against certain events,e.g-travel insurance
investments
definition: Money paid into financial products; the aim is that the value of
the product will grow over time
mandatory expenditure
definition:compulsory outgoings,they must be paid,e.g-road insurance
mortgage
definition: loan taken out to pay for a property,usually over a long term
national insurance contributions
definition: 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
definition: Things that people need to survive, such as food
office for national statistics
definition: The independent organisation that produces statistics on many aspects of life in the UK such as employment
pension
definition: income that people receive after retiring from work,in the UK
people receive a pension from the state and can have private pensions
premium bonds
definition: lottery bond, issued by NS&I, entered into a monthly prize draw with tax-free prizes or ‘premiums’
real terms
definition: A value adjusted to account for changes in prices
retail price index (RPI)
definition: One of the ways the government measures inflation,
calculated by checking the price of a representative sample of
goods monthly,unlike CPI it also
takes into account mortgage interest payments and other costs associated with home ownership.
self-employment
definition: Earning an income by selling your goods or services directly to a
consumer,rather than being employed by somebody
transaction
definition: Buying or selling something
utility
definition: essential public service, such as electricity, gas, water
wants
definition: Things that people would like to have but can survive without,such as entertainment
