Financial planning and money management Unit 2 Topic 1 #valleyifs @ Kahoot

Financial planning and money management No. Question A B C Ans 1 In general, financial advisers suggest an emergency fund of between: three and six months’ essential expenditure 2 Non-profit-making financial co-operatives run for the benefit of their members are known as: Credit unions Building societies banks 3 An adviser who can only offer products from one company or a limited number of companies is known as: an independent financial adviser a restricted financial adviser 4 How long have building societies been around? 250 years 200 years 100 years 5 What type of objective does buying a new car? Personal Financial SMART 6 Which of these is not a benefit of sound financial planning? Selecting sensible and affordable products Avoiding unnecessary borrowing Feeling worries about or finances/debts 7 Which of these is not one of the bank’s main roles? To provide a safe place for people to keep their money To print the money To provide loans and mortgages for customers 8 What percentage of drivers aged between 17 to 19 make up the amount of UK licensed drivers? 1.5% 5% 12.3% 9 What is a unit trust? [2] 10 What is the Financial Conduct Authority? [3]

Answers No. Question A B C 1 In general, financial advisers suggest an emergency fund of between: three and six months’ essential expenditure Six and nine months’ essential expenditure Nine and twelve months’ essential expenditure 2 Non-profit-making financial co-operatives run for the benefit of their members are known as: Credit unions Building societies banks 3 An adviser who can only offer products from one company or a limited number of companies is known as: an independent financial adviser a restricted financial adviser 4 How long have building societies been around? 250 years 200 years 100 years 5 What type of objective does buying a new car? Personal Financial SMART 6 Which of these is not a benefit of sound financial planning? Selecting sensible and affordable products Avoiding unnecessary borrowing Feeling worried about or finances/debts 7 Which of these is not one of the bank’s main roles? To provide a safe place for people to keep their money To print the money To provide loans and mortgages for customers 8 What percentage of drivers aged between 17 to 19 make up the amount of UK licensed drivers? 1.5% 5% 12.3% 9 What is a unit trust? [2] Marks awarded for the each point stated or valid alternatives: The UK’s most common form of collective investment fund. It allows many investors to pool their money together. 10 What is the Financial Conduct Authority? [3] One of the two main regulators of financial services in the UK. It sets rules and standards that providers must meet. It is responsible for the way in which financial firms market and sell their products. Answers

Benefits of Sound Financial Planning Feel relaxed about our finances. Select sensible and affordable borrowing products if we need to borrow, and avoid unnecessary borrowing. Know what we’re doing on a day-to-day basis. Identify what our objectives and needs are, and plan to achieve them. Make better decisions about spending, saving and borrowing. Understand how each financial decision we make affects other areas of our finances. Make sure that important people and things are protected. Know what needs to be done to reach those objectives and goals, rather than hoping for the best. Ensure that more of our own money is available to us. Adapt if our needs or objectives change.

Key Terms for Topic 1 CLICK FOR TIMER Budgeting Credit Card Emergency Fund Financial Conduct Authority Financial Planning Money Management Mortgage Net Income Objective Personal Loan Unit Trust On your whiteboards or books, write down a definitions for these key terms. EXT: Can you give examples of each? 5 minutes CLICK FOR TIMER

Answers Net income – the amount a person earns after deductions have been taken by the government Financial Conduct Authority – one of the two main regulators of financial services in the UK. It sets rules and standards that providers must meet. Budgeting – managing day-to-day money to pay bills, buy food, save and pay for other essential spending. Objective –something that someone wants or needs to achieve. Financial planning – making plans to meet short- and long-term needs. Credit card – a form of borrowing that allows the cardholder to borrow money from the bank to pay for. Personal loan – offered by banks,. It is usually paid back over a much shorter term than a mortgage, and tends to be unsecured, so the providers charge higher interest rates to cover the risk. Money management – the process of managing money, including budgeting, banking, saving, investing and tax planning. Emergency fund – a pot of money that can be used to cover emergencies, such as unexpected spending, loss of income or other unexpected financial problems. Mortgage – a loan to help people buy houses or flats. They are offered mainly by banks and building societies and can last for up to 30 years. Unit trust – the most common form (in the UK) of collective fund, allowing many investors to pool their money together.

GCSE IFS Finance – Unit 2 Topic 1 Search for #valleyifs GCSE IFS Finance – Unit 2 Topic 1