Finance unit 2

• Affordability


  Important concept in helping people to choose financial products, based on budgeting and forecasting to help individuals decide what they can afford to spend.
• Aspirations


  Things/Experiences people would like to have in the future.
• Attitudes


  Peoples general thoughts/feelings, at a given time and place, about another person, event or issue.
• Beliefs


  Specific and detailed personal convictions about how things are.
• Capital


  Money or other assets owned by an individual/business, specifically funds provided by shareholders and not customer deposits.
• Consumer Credit


  Another term used for borrowing.
• Credit Card


  Card allowing holder to make purchases face-to-face, online or over-the-phone where repayments are made in instalments on a monthly basis.
• Culture


  Societies set of norms about behaviour and attitudes across social groups, indicating to a society what is un/acceptable.
• Deposit


  Sum of money placed with a financial services provider by a customer.
• Distribution Channel


  Medium through which information is transferred to its intended recipient - (referring to the way a customer can contact their provider to manage their account).
• Ethical Investing


  Choosing to save in a way that means the money will be used for what the individual considers to be good purposes.
• Feedback Effect


  Notion that thoughts and feelings have a direct influence on behaviour, as expectations can be self-fulfilling, people's own attitudes affect the outcome of events.
• Hire Purchase


  Type of secured consumer credit to finance items such as cars and furniture, involving repayments over a number of years.
• Investments


  Money paid into financial products with the aim being the value of the product growing over time so the individual makes an eventual profit - (way of saving over medium or long term).
• Life Assurance


  Type of insurance policy that pays out a sum of money if the insured person dies at any point in their life.
• Life Insurance


  Type of insurance policy that pays our a sum of money if the insured person dies within a period of time.
• Life Cycle


  The stages people pass through between birth and death.
• Marketing


  Everything a company does to acquire customers and maintain a relationship with them - (advertising, selling and delivering products)
• Needs


  Things necessary to a persons survival.
• Peers


  People in the same position as us - (our equals).
• Pension


  Income received after retiring from work.
• Personal Loan


  Product that allows a person to borrow a FIXED amount, over a FIXED period of time, at a FIXED rate of interest.
• Product Placement


  Aspect of public relations, involving a product appearing on a tv show or film.