ways of planning expendicture Flashcards
1
Q
debt? and how to avoid?
A
-money owed
-look to control costs so that your debt doesn’t build up
2
Q
credit rating?
A
a score given to individuals on how likely they are to repay debts based upon their previous actions
3
Q
bankrupt?
A
– when an individual or organisation legally states its inability to repay debts
4
Q
solvent?
A
the ability to meet day to day expenditure and repay debts
5
Q
expenditure?
A
what you pay for (money that goes out) important when managing personal finance
6
Q
how to remain solvent?
A
-you should set financial targets and goals
7
Q
controlling costs
A
-if your spending to high, this may mean more money is going out then coming in which builds up debt.
8
Q
inflation?
A
a decrease in the purchasing power of currency due to a rise in prices across the economy
