Flashcards
CeFS key terms Topic 9
Flashcards do conjunto (34)
- 1InflationA rise in prices, which means that the purchasing power of money falls
- 2InsuranceProducts that give financial protection against certain events
- 3InvestmentsMoney paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually make a profit
- 4Mandatory expenditureCompulsory outgoings; they do not necessarily apply to everyone, but if they do apply they must be paid
- 5MortgageA loan taken out to pay for a property, usually over a long term such as 25 years
- 6National Insurance ContributionsMoney deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits
- 7NeedsThings that people need to survive, such as food, basic clothing and a place to live
- 8Office of National StatisticsThe independent organisation that produces statistics on many aspects of life in the UK
- 9PensionAn income that people receive after retiring from work. In the UK people receive a pension from the state; some people also receive pension payments from schemes run by their former employers or arrangements that they have made for themselves
- 10Premium BondA lottery bond, issued by NS&I, entered into a monthly prize draw with tax-free prizes
- 11Real termsA value adjusted to account for changes in prices. ie although someone may receive a nominal pay increase of 5%, if inflation is 3% then in real terms the pay increase is approx. 2%
- 12Retail Price Index (RPI)One of the ways the government measures inflation.
- 13Self -employmentEarning an income by selling your goods or services directly to a consumer, rather an being employed by somebody else and being paid a wage or salary
- 14TransactionBuying or selling something
- 15UtilityAn essential public service, such as electricity, gas, water and sewerage
- 16WantsThings that people would like to have but can survive without, such as entertainment, fashionable clothes etc
- 17AspirationsThings or experiences that people would like to have in the future, for example owning a home instead of renting
- 18ATMAutomated teller machine, also known as a
CASH MACHINE - 19BalanceIncome minus expenses
- 20Budget balanceTotal income minus total expenditure: a person's net financial situation.
- 21BudgetA plan of expected incomings and outgoings over a set time period such as a month. Also a term given to the government's annual spending plan
- 22Budget deficitA situation in which outgoings exceed income
- 23Budget surplusA sum of money available once all the essential expenditure in a given period, eg a month, has been made
- 24Cash flow forecastA plan of expected incomings and outgoings over several time periods, such as the next 3 months
- 25ChancellorThe Chancellor of the Exchequer, The British Cabinet Minister responsible for financial and economic matters and in charge of the Treasury.
- 26Consumer Prices Index (CPI)One of the means the government uses to measure inflation.
- 27Credit historyA record of money borrowed and repaid by an individual.
- 28Current accountBank or building society accounts where people can store their money in the form of electronic balances and withdraw it to make payments
- 29Discretionary expenditureVoluntary spending on products and services that people want now, and savings towards items they aspire to buy in the future
- 30DividendA payment of profits from a company to its shareholders, often at twice-yearly intervals
- 31DutyThe tax paid on certain items, including fuel, cigarettes and alcohol
- 32Essential expenditureSpending on items required to live, eg rent or mortgage repayments, food & drink, water, gas, electricity
- 33IncomeEarnings, savings and interest payments received within a certain timeframe
- 34Income TaxTax paid on earnings from employment, self-employment and interest on savings