Unit 1 Topic 2 Flashcards
Define ‘aspirations’
Things or experience that people would like to have in the future, for example owning a home instead of renting, having a luxury holiday or buying a sports car.
Define ‘assets’
Things that a person or business owns. For a person their assets might include property, jewllery or financial products such as company shares.
What is a bank rate?
The interest rate that the Bank of England uses when it lends money to other banks. Financial services providers take account of the bank rate when they decide how to set interest rates on their own products.
Describe what is meant by demographic changes
Changes to the size and structure of the population.
What’s an economic boom?
A period where the country is producing and selling an increasing amount of goods and services.
Describe what an interest rate is
The amount, expressed as a percentage, that a financial services provider charges a borrower when it lends money, or pays to a saver.
What are investments?
Money paid into financial products; the aim is that the value of the product will grow overtime 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.
What is life assurance?
A type of insurance policy that pays out a sum of money if the insured person dies.
What is the 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 and not everyone passes through the stages at the same time.
What is meant by life expectancy?
The number of years that people are expected, on average, to live, based on the year in which they are born.
What’s a mortgage?
A loan taken out to pay for a property, usually over a long term such as 25 years.
What are national Insurance contributions?
Money deducted from pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits.
Explain what is meant by the term ‘needs’
Things that people need to survive, such as food, basic clothing and a place to live.
What is the 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
What is a 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.
