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Dealing with unforeseen events
Fichas del conjunto (23)
- 1Does everything that people plan get achieved?No, because lots of people plan short term and leave the rest to take care of itself.
- 2Give me an example of unforeseen event that can damage financial situation> Divorce
> Redundancy
> illness - 3What means to be flexible?Being able to change priorities
- 4Give me an example of positive unforeseen event> promotion
> inheritance
> lottery win - 5Give me an example of non-flexible financial product> fixed-rate mortgage
> hire purchase - 6What do businesses need to know in order to provide accurate financial plan their future?Their assets and liabilities (especially for sole traders and partnerships.
Their financial situation. - 7What is 'what if' calculation?This is a calculation of opportunity cost.(both of them)
- 8What we need to consider taking out a mortgage in terms of interest rate?Raises and falls of interest rate as you can be confident that you'll repay mortgage on the certain interest rate, but maybe not on the other.
- 9How does inflation influence 'what if' calculations?Inflation is a rise in prices. Peoples income remains the same = standard of living falls.
IF prices will rise more than expected, it's wise to rise expenditure by a higher percentage than income. - 10How does inflation influence old people?Old people have a fixed rate income = annuities. These are affected by having less income than earlier.
- 11How does exchange rate influence 'what if' calculations?IF someone's financial plan includes an annual holiday, it is wise to increase the cost by a small percentage each year to reflect adverse exchange rate movements.
- 12What might mean a change in government?A change in social security (benefits). Changes will give uncertainty for people claiming these benefits and so it will harder to face these changes in their financial plans.
- 13To what unemployed person can be entitled to?To universal Credit that replaces:
>income-based Jobseeker's Allowance
>income-based Employment and Support Allowance
>Income Support
>Working Tax Credit
>Child Tax Credit
> Housing Benefit - 14What benefit is available for disabled and ill-health people?Disability Living Allowance (DLA) and Personal Independence Payments (PIP)
- 15What kind of debt is mortgage?Unsecured
- 16What is equity withdrawal?This is additional borrowing based on the difference between the value of a house and outstanding mortgage.
- 17What preceded financial crisis?People borrowed too much money that they couldn't repay.
- 18What are consequences of poor management?>Leads to personal problems
>Difficulty in having a place to live in
> Difficult to get credit
> Excluded from many financial products - 19What organizations help over-indebted people?> Money Advice Service
> Citizens Advise
> StepChange Debt Charity - 20What is advice from providers to over-indebted people?> You should find out exactly how much you owe (in total and individually) and check the dead-line
> Draw up a budget plan.
> Put debts in order of priority.
> Work out realistic debt management plan.
> Pay off most expensive loans first.
> Consider a debt consolidation loan to put all debts in one place. (=cheaper) - 21How can you rebuild your credit history?Credit record remains six years.
Over this period you can pay off your debt and get back into the balance. - 22What should people do when they improved their credit history?> Control their wants and aspirations so it fits their expenditure.
> Limit their borrowing so they can repay. - 23—
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- AS (Financial planning) Finance Fichas sobre Dealing with unforeseen events, creado por Jevgenija Zukova el 02/05/2016.
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- Jevgenija Zukova
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