Topic 1: Personal Financial Sustainability Flashcards
How to achieve sustainability?
financial planning which incorporates accurate figures, products and clear goals
What is comprehensive planning?
A plan that covers bills and expenditure which is varied and situational
What are the features of a flexible plan?
Balance between time periods informed adaptable fluid realistic
List the priorities when making a plan
- Mandatory
- Basic needs
- Essential needs
- Discretionary
Cash flow forecast
plan of expected incomings/outgoings over several time periods
Cash flow modelling
Give an example software
Software that can compare impact of different events on medium - long term plans
Money Dashboard app
What is contingency planning?
A plan to deal with unexpected changes in income / expenditure
What are CPI and RPI
CPI= measure of price of basket of goods and services RPI = measure of consumer inflation based on changes in retail price including mortgages
What type of products do banks and building societies specialise in?
Current accounts
Name 3 saving account products
ISAs - tax free
Notice accounts
Fixed term
Which borrowing product tends to have the highest interest?
Payday loans or logbook loans
Hire purchase
secured method of financing expensive item such as car or furniture over years
What is a type of low cost pension?
Stake holder pension
