Income and Expenditure
What is income
Income is money or something of value received by a person or household
What is a need and give an example of a need.
Items that we cannot do without in order to survive(e.g. Food)
What does it mean to lodge money?
Lodge: putting money into a bank account
What is a consumer?
Consumer is someone who buys goods and services for their own use.
What are non re-newable resources? Give an eample
Resources that are limited in supply and cannot be replaced.E.g. Fossil Fuels (Oil, Gas)
Name a source of income for a retired person
Pension
Define want and give an example to support your answer.
Items we would like to have but are not essential to survive (e.g. Computer games)
What does it mean to withdraw money?
Withdraw: taking money out of bank account
Give 4 questions a wise consumer would consider before purchasing an item
Do I really need it? Avoid Impulse Buying
Can I afford it?
‘Is it good value for money?’ Avoid False Economies
‘Can I get it cheaper elsewhere?’
Are there hidden charges/fees?
Is the product safe? Does it cause harm to me or others?
Get a receipt when you buy something
What are renewable resources? Give an examle
Resources that are not limited in supply and will not run out.E.g. wind, sunlight
Name a source of income for an unemployed person
Social welfare
What is the financial lifecycle?
Financial Lifecycle: a series of stages which most people pass through during their life. Each stage has different financial goals, income and spending.
What is a current account?
Current Account: allows you to lodge and withdraw money at any time. This account is used for day-to-day transactions.
Define impulse buying and give an example
Impulse Buying occurs when we make a sudden, unplanneddecision to buy something.
What is an ethical Consumer?
Ethical Consumer chooses goods and services that meet their needs that reflect their views on what is right and wrong.
Define fixed expenditure and give an example
Regular income is money that is received every week or month. You can predict how much you will earn and depend on it.
Examples of regular income:
Wages
Salaries
Unemployment Benefit
Child Benefit
Pensions
Pocket Money
Give the age range for childhood in the financial lifeycle and give an example of income and expenditure for that stage.
0-12 years.
Income: pocket money, gifts
Expenditure: toys and snacks
Name 4 current account services
1)ATM
2)debit card
3)contactless payment
4)cheque
5)credit transfer
6)bank draft
7)paypath
8)overdraft
What is unit price? Give the formula for unit pricing
The unit price is the price of a single amount of a product
Formula: Unit Price = Price ÷ Quantity
What are ethical goods?
Ethical Goods are produced in a way that is kind to the environment and to people who produce them.
Define irregular income and give an example
Irregular Income: Is money that is received from time to time. Often, you do not know how much or when you will receive the money. You cannot depend on it.
Examples:
Overtime Payments
Commission
Bonus Payments
Gifts
Interest
Name the stages of the financial lifecycle in order
1)Childhood(0-12 years)
2)Teen/young adult (13-20 years)
3)Starting a career (20-30 years)
4)Setting up a home (25-35 years)
5)Growing career/ family (35-65 years)
6)Retirement (65+ years)
What is a bank draft?
Bank Draft: A written document thattells the bank to pay a stated sum ofmoney to a named person.
it is written by the bank and guaranteed not to bounce as you pay the money in advance.
It is a common way to pay for expensive items like cars and houses.
Outline two rights of a consumer shopping online
1)Right to redress/refund/replacement/repair for faulty goods
2)The right to change your mind/ cancel / 14 days cooling off period
3)The right that all personal data used online to be secure/ safe
4)The information after buying. You must get a copy pf the signed receipt / confirmation / authorisation order number of your purchase
What is corporate social responsibility (CSR)?
Corporate Social Responsibility: organisations acting to benefit the society and environment.
Eg. Examples include LEGO's use of sustainable packaging and Honda’s zero waste to landfill initiatives.