What is the difference between needs and wants
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Outline one risk of impulse buying
Fall into debt
Why is it important to prepare a budget?
Helps control spending, ensure needs are covered, help save
True or False: Opportunity cost is the same as financial cost
False
What is insurable interest
You must benefit from its existence and suffer from its loss
What source of finance should someone choose for a house
Mortgage, Long term loan
What is impulse buying?
Spur of the moment purchasing
Explain the term insurance premium
The price you pay for insurance
What is the rule of thumb for the opening cash in a household budget
Also goes in the total
What are the stages of the financial life cycle?
Reliance, Independent, Development, Pre-retirement, Retirement
What sort of source of finance should someone choose for a car
Hire purchase/ medium term loan
What can a credit union offer to customers?
Saving accounts, personal loans, online banking
What factors influence car insurance premiums?
Driver and car details, safety, Claims, Bonus points
How can someone reduce their car insurance premiums?
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What are 2 ways to reduce expenditure
Shop around, avoid discretionary expenditure
Tom has €10 to spend and is unsure between phone credit and a t shirt. He chooses to buy the credit. Which is the financial cost and the opportunity cost?
Financial cost - €10, OC - T shirt
February's closing cash becoming what in March
Opening Cash
What is indemnity?
You cannot profit from insurance
How do you calculate net cash
Total income - total expenditure
Explain the term Utmost Good faith
You cannot lie when taking out insurance