Dealing with Unforeseen events

jessnrm98
Flashcards by jessnrm98, updated more than 1 year ago
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Review Flashcards on Topic 7 of CeFs Unit 2
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In terms of financial planning, what does it mean to be flexible? To be willing and able to make changes in priorities in the case of an unplanned event, making sure that you are in control.
How does interest rates affect a person's financial situation? The interest rates according to the bank rate is subject to change as inflation rates fluctuate. In this case, some specific products give people different experiences; it may be a good or bad year for savers - the same case goes for borrowers. Individual providers also have the ability of changing their product rates in terms of the interest rates according to the level of risk they carry.
How can the rate of inflation affect a person's financial situation? Inflation rate is the speed at which the prices of goods increase - or decrease for that matter. This is especially a problem for those on fixed income - such as annuities that are inflation linked;
Define exchange rates Prices in terms of other currencies.
What are state benefits? The amount they are entitled to receive as income is dependent on their current government policy.
What is Disability Living Allowance being replaced by? Personal Independence Payments: designed as a financial support with long term health / disability to pay for extra costs when condition incurs.
Give an example of a loan that charges an extremely high interest rate. Payday Loans.
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