Learning aim A - Deck 1 Flashcards
(19 cards)
unit of account
standard measurement of goods (a comparison)
means of exchange
exchange for another item. (no barter)
store of value
Asset holds value
legal Tender
form of payment backed by government (coins)
Personal attitudes
Depending on the person, some want to will spend - others will save
Life stages
As you grow up, financial needs change
Culture
different traditions/beliefs can cause you to spend more
Life events
events in your life time affect your expenditure - birthdays, weddings
External factors
Factors outside your control - government, economy
Interest rates
cots of borrowing/ saving
Avoiding debt
controlling what money i coming in/out
control costs
being away of expenditure
Legal action/repossession
unpayable debts can lead to legal action of the reclaiming of unpaid items.
solvent
Ability to meet day to day expenditure
Credit rating
Personal score on likelihood of paying back loans
Bankruptcy
unable to repay debts
manage money
allows you to avoid borrowing and going into debt
Income and savings generation
generating income from savings helps to counter inflation
financial targets and goals
financial milestones that you plan to achieve
