Personal Finance is the money individuals receive and how they use it.
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Our contribution to the economy and to society is made through financial choices such as:
Job Paying tax Saving Giving to charity Borrowing Spending Investing
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What policies are in the Government budget that would affect personal finance?
For instance, the interest rates set by the Bank of England and the annual Budget set out by the Chancellor of the Exchequer both influence personal financial d
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Define a financial a boom
Debts and unemployment are low
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Define a recession
Debts and Unemployment are high.
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What does Austerity mean?
The general public/normal people cannot afford to spend much money.
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How do we as citizen contribute to society?
We pay tax through our wages/salaries
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What does the government do with our tax money?
A percentage of the earnings is taken by the government to spend on society as a whole.
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What Give some example of the things that the government spend on?
NHS, Defence, Public Services, Pensions, Education, welfare(benefits), Public order and safety, Social services, Transport,, Industry, Agriculture, Employment
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Who is in charge of the annual budget?
The Chancellor
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What is laid out in the budget?
Taxation, levels of government borrowing and targets for inflation.
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What does surplus mean?
More money than expected - after paying or more money coming in
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What does deficit mean?
Less money than expected - overspending
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Public spending can take place at both national and regional levels. True or False?
True
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Describe inflation and what it affects
The cost of living increasing. Things such as food, petrol and utility bills will be affected by inflation.
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What does CPI stand for?
Consumer Price Index (average basket of goods to help measure inflation)
