Week 2 : Lifecycle Flashcards
Assets
Things that a person or business owns. For personal assets it might include property, jewlerry or financial products such as company shares
Bank rate
The interest rate that the bank on England uses when it lends money to other banks. Financial service providers take into account the bank rate when they decide how to set interest rates on their own products
Demographic changes
Changes to the size and structure of the population eg, a rise in children of school age
Economic boom
A period when the country is producing and selling and increasing amount on goods and services
Interest rate
The amount expressed as a percentage, that the financial services provider charges a borrower when it lends money, or pays to a saver
Investments
Money paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in. Investments are a way of apsaving over the medium to long term
Life assurance
A type of insurance policy that pays out a sum of money if the insured person dies
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 these stages and not everyone passes through the stages at the same time
Life expectancy
The number of years that people are expected, on average, to live, based on the year in which they were born
Mortgage
A loan taken out to pay for a property, usually over a long term such as 25 years
National insurance contributions
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
The things that people need to survive, such as food, basic clothing and places to live
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 and housing ect…..
Pension
An income that people receive after retiring from work. In the UK people receive a pension from the state, some also receive pension payments from schemes run by their former employers or arrangements that they have made for themselves
Recession
A period of at least 6 months when the amount of goods and services the country produce is shrinking
