BTEC Business - A1

Unit of account - Allows us to place a monetary value on goods.

Means of exchange - Allows us to trade. Can buy and sell goods.

Store of value - Allows us to keep it in the future. It keeps it's value.

Legal tender - A legally recognised form of payment.

Personal attitudes - Risk and rewared, saving and borrowing etc. 

Life stages - As you grow up your financial needs change.

Culture - May be affected by tradition or religion, eg. Christains pay tithes. 

Life events - University, family, marriage, illness, financial gain/loss etc. 

External influences - Eg. Government will affect taxes or benefits.

Interest rates - When high you save and when low you borrow. 

Childhood - Have less needs, reliant on parents, buy sweets. Encouraged to save, buy what you want attitude, reliant on pocket money.

Adolesence - More independent, less reliant on parents. Part time jobs, pocket money, cash for gifts.

Young adult - University, career, car, house, family. Student loans, mortgage, credit/debit cards.

Middle age - Family, children, house, luxury. Savings, mortgage, future.

Old age - Fewer dependents, may downsize, healthcare, Mortgage stops, less income, reliant on pensions. 

- Control costs

- Avoid legal action/ repossession

- Remain solvent

- Maintain a good credit rating

- Avoid bankruptcy

- Manage money to fund purchases

- Generate income and savings 

- Set financial goals and targets

- Provide insurance against loss/ illness

- Counter the effects of inflation 

- Avoid getting into debt