Unit 3 - personal finance continued Flashcards
6 factors affecting borrowing
income savings amount needed length of time needed credit score outgoings
individuals savings account (ISA)
Savings account you don’t pay tax on
ISA pro
No tax
Low interest
Access money at any time
ISA con
Saving is slow
deposit and savings account
Where you put your regular savings
deposit savings account pro and con
Earn interest +
Easy to access +
Some have monthly fees -
premium bonds
Chance of winning a lot more than could be earned in interest
premium bonds pro and con
Easy to withdraw +
Tax free +
Doesn’t always work
bonds and gilts
Lend money to government/businesses to try and earn interest back
bonds and gilts pro and con
Can invest long term +
can be directly affected by change in interest rates
shares
buy a part of a company to gain a profit. can be sold/traded
shares pro and con
Can vote on company decisions +
Not guaranteed to gain money
Easy to lose money
pension
Paying part of your salary into an account to be able to access when you’re retired
pension pro and con
compound interest +
Can’t access until a certain age
Can be complicated
saving def
Not spending money, but instead keeping it for a later date
