Understanding the personal life cycle

The personal life cycle Childhood (0-12) Adolescence (teenagers) Young Adult Middle Adult (Middle Age) Late Adult (Old Age) Throughout this progression, incomes will change significantly

Needs & Wants Needs (those things people need to survive – ie: water and heating) and Wants (the things that make life more enjoyable) also change a circumstances change. At all stages of the personal life cycle, incomes are likely to be limited. They are a ‘SCARCE RESOURCE’. Needs and wants, however, are likely to be UNLIMITED. People have to decide between the purchases that are essential (NEEDS) and those that are not (WANTS).

Key milestones in the personal life cycle Important events (‘milestones’) in the personal life cycle will affect our finances. Leaving school Gaining employment Promotion Unemployment Retirement

How the government affects stages of the personal life cycle There are many points in people’s lives when they may need additional financial help from the government. This is provided through the benefits system: Education Maintenance Allowance (EMA) Tax Credits (reduces income tax that low-paid workers have to pay) Jobcentre Plus offices provide benefits and services to help people to find work (Jobseeker’s Allowance), start their own business, help individuals manage in low-paid jobs or help with work-related accidents or illness. Pensions