managing day-to-day money to pay bills, buy food, save and pay for other essential spending

a form of borrowing offered by banks, building societies and some specialist firms. It allows the cardholder to borrow money by paying for things using the credit card, but is generally the most expensive way to borrow, unless the balance is paid in full every month.

a pot of money that can be used to cover emergencies, such as unexpected spending, loss of income or other unexpected financial problems

one of the two main regulators of financial services in the UK. It sets rules and standards that providers must meet.

making plans to meet short- and long-term needs

the process of managing money, including budgeting, banking, saving, investing and tax planning.

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.

the amount a person earns after deductions have been taken by the government, ie for tax and National Insurance.

a target; something that the individual wants or needs to achieve.

offered by banks, building societies and some specialist firms. 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.

the most common form (in the UK) of collective fund, allowing many investors to pool their money together.

the amount of money that a person could afford to lose (or needs to risk) when trying to achieve their objectives.

are similar to gilts in the way that they work, but the borrower would be a large company, rather than the government.

the full name for these is '_______-edged securities', which derives from the fact that the certificates used to be edged in gold leaf or gold paint. The government issues them when it needs to borrow money, and promises to pay a guaranteed rate of interest each year and repay the money at the end of the term. They usually have a fixed term of between 5 and 30 years and are usually bought by large organisations and investment companies.

people go through a number of stages in their life. Each stage is based on their age. Each of the stages has its own typical opportunities, challenges and needs.

how the individual feels about the possibility that the value of their savings could fluctuate over time and that they could even lose some of their funds.

the name derives from the fact that the holder actually owns a part of the company. They will go up or down in value, according to how investors and large financial organisations think the company is doing.

a system that regulates the way shares are issued, valued and sold, and through which shares are traded.

a measure of the extent to which a value goes up or down over a period of time. High volatility means higher risk.

the equivalent interest rate, restated from the nominal rate, if we allow for the effect of compounding over the year.

something a person would like or would hope for, rather than something that they absolutely need.

a savings account that offers a fixed rate of interest for a fixed term.

a financial co-operative run by, and for the benefit of, its members.

important points along the timeline for achieving an objective.

cash in a savings account.

the UK regulator responsible for the way in which financial firms market and sell their products.

a scheme that provides compensation to customers if an authorised UK financial firm becomes insolvent.

Qualities of an entrepreneur

a tax-free savings and investment account.

when a company cannot afford to pay its debts; similar to 'bankruptcy' for an individual.

a savings account that allows the saver to take out money as and when they need it.

money earned by putting money 'on deposit' in a deposit account.

a savings account available to people aged between 18 and 40 that lets them save up to £4,000 a year and receive a 25% government bonus.

Something that a person should or must have as part of their life.

a savings account that requires the account holder to give advance warning if they wish to take money out.

the amount of interest that someone can earn on their savings tax-free in a tax year. ISA interest is always tax-free.

the UK regulator responsible for making sure that financial firms are authorised to operate in the UK and are financially sound

applies to savings interest. Up to £5,000 of savings interest is tax free for those with relatively low income.

the flow of money into and out of an account.

predicting when money will move in and out of the account and identifying pressure points in a budget.

the British Cabinet minister responsible for financial and economic matters, and in charge of the Treasury (the government's economic and finance ministry).

an electronic payment out of an account, for example to pay a bill. The amount of a direct debit and how often it is taken can vary.

things that we might like to buy if we have the money, but that aren't essential to our standard of living.

income from working, either as an employee or from self-employment.

working for an employer, who can dictate when, where and how the employee will perform their job.

bills that are necessary to a person's (or family's) way of life.

the total value of all goods produced and services provided by a country; in simple terms, what the country has earned in the year.

bills that must be paid by law.

what is left after taking regular expenditure away from net income.

a borrowing facility offered to bank account holders, which allows them to be temporarily overdrawn up to an agreed amount.

a company that provides short-term loans to people who need to borrow until their next pay day, when the loan should be paid back.

bills and spending that occurs each month.

when a person has no money in their bank account but still takes money out

income after tax and other deductions have been taken off.

people working for themselves and being able to pick what work to do and when.

an electronic payment out of an account. In contrast to a direct debit, this facility is used to make regular payments of the same amount.

income from savings, investments, etc, that is not received for doing work.

the interest rate set by the Monetary Policy Committee (MPC) for the Bank of England to lend to UK banks.

a currency exchange business, where people go to exchange one currency for another.

the institution responsible for managing a country's currency, interest rates and the supply of money in circulation.

the official government measure of UK inflation

the money used in each country. For example, the UK it is the pound and the US it is the US dollar.

the currency will buy less of another currency than before.

the currency will buy more of another currency than before.

prices fall over time.

the amount of one currency needed to buy another currency or to pay for something in another currency.

the provider fixes the interest rate at the start, either for the whole term of a loan or for an agreed period.

a global system for central banks, banks, large financial organisations and large investors to exchange currencies.

general increases in the price of goods and services over time.

the rate at which banks will exchange currencies with each other.

part of the Bank of England that is responsible for controlling UK inflation and setting interest rates.

the savings interest rate minus inflation.

the rate offered to people wishing to exchange currency at a bank or bureau de change. It will be lower than the interbank level

the interest rate changes each time the provider changes its interest rate.

spending by ordinary people.

the important physical systems of a nation - for example, transport, communication, water and sewage, and power.

spending on items that we want, but which are not vital to surviving. Examples would include holidays and luxury items such as an iPad.

when a need to spend arises that was not expected; not emergencies, but times when there is a need to buy or pay for something that wasn't planned for in advance.

a payment clearing scheme that allows electronic payments to be made between bank accounts.

in relation to banking, a ___________ is just a way of accessing the bank's services.

the electronic Clearing House Automated Payment System, which is used for very high-value payments and payments between large companies.

a written order by the account holder to pay someone else.

the UK smart-card payment system for debit and credit cards, which uses a computer chip within the card itself, and a personal identification number (PIN) chosen by the customer.

the process by which a cheque or card payment goes through the banking system.

where payment is made just by touching a card on a card reader in a shop, although sometimes the buyer may also be asked to enter their PIN for security.

a bank account used for convenient access to funds, with payments often (and easily) coming in and going out.

a card used by the account holder to make payments or withdraw money from their current account.

the person writing a cheque - the technical term for taking money from one's own account

a way to make electronic payments to another bank account.

Pingit, Zapp and Paym are examples of specially developed programmes for people to pay bills and send money via their mobile phones without entering bank details each time.

the person who will receive the money.

an example of an online payment service, which facilitates secure online payments between parties with PayPal accounts. Accounts are linked to a customer's debit or credit card, but card details are not revealed when payment is made to another account.

a special number that identifies the bank and directs cheques and payments to the right place; similar to a postcode.

a simple record of all money coming in and all money going out of an account, set out in date order.

certain benefits, given to an employee by an employer, which are treated as income.

His Majesty's Revenue & Customs.

refers to all earnings received from working, saving, investing, renting property, and any other source.

a form of tax on all income received by an individual. It helps to fund general government spending, and is charged at the rates of 20%, 40% or 45% of income above a certain amount, known as the personal allowance.

a form of tax on earned income paid by employees, employers and self-employed people. The money raised pays for the National Health Service, the state pension and a number of other state benefits.

what we have left after income tax and NI have been deducted; what we have available to spend.

the form that employees receive when they change jobs. It states how much they earned and how much tax they paid in their last job.

the form all employees receive at the end of the tax year, telling them how much they were paid and how much tax was deducted.

Pay As You Earn is the way that income tax is collected from employees. Their employer deducts tax each time they are paid, which means they don't have a big tax bill to pay at the end of the tax year.

every individual is allowed to receive a certain amount of income before they have to pay tax. There is a standard level that applies to most people, but some people have a different level because of their circumstances.

the system by which self-employed people, higher-rate and additional-rate taxpayers and those with unusual circumstances declare their income for tax purposes.

someone who doesn't work for an employer but has set up their own business. This means that they have to find their own work and sort out their own tax.

income that is subject to tax deductions.

in business terms, total income for the tax year.

an increase in prices of goods and services

when people are prepared to spend more on something because it has a certain brand name, rather than buy a cheaper alternative that will serve its purpose just as well but does not have the name.

a government department responsible for promoting competition for the benefit of consumers. It took over many of the responsibilities of the Office of Fair Trading (which closed in 2014).

shopping from a company that promotes its products on a dedicated TV channel, and sells them over the phone or online.

a government tax levied on sales of most goods and services.

getting the best goods for the money available.

debts that are used to buy things that have no real value, lose value quickly, produce no income or don't really improve the borrower's situation.

the money or other assets owned by an individual or a business. In the case of a financial service provider (ie bank or lender), it refers to the funds provided by the shareholders, not deposits from customers.

the amount of debt built up by members of the public rather than the government.

an assessment of the risk that the borrower poses for the lender.

a sum of money placed by a customer with a bank.

debts that are used to buy something that will increase in value or result in something positive happening.

an insurance product that pays out a lump sum after a specified term or if the insured person dies before the end of the term. They are often used as a way of saving over the long term.

the difference between the value of a property and the mortgage on it.

the regular charge a borrower pays for borrowing money, usually shown as an annual percentage rate.

a type of secured loan arranged to buy a flat or house.

when a bank account holder has drawn more money out of their account than they have in it. Most banks allow a customer to do this as long as it has been agreed beforehand; this is an 'authorised' overdraft. If the customer does this without agreement, or goes over their limit, it is called an 'unauthorised' ___________.

the difference between the money received by providing a service and the cost of providing the service.

lending where the borrower has given the lender rights over something that has value - usually a flat or a house - to support the loan and reduce the lender's risk.

a loan where the borrower can borrow up to a set limit. Each time they pay back some of the loan, they can borrow it back later.

lending where the lender doesn't have rights over anything and could be at risk of losing money if the borrower doesn't pay.

personal possessions and investments that have a value if sold.

a court order to recover debts from an insolvent person, under the supervision of a trustee in bankruptcy.

borrowing by members of the public rather than the government.

a court order for the repayment of a debt.

companies that collect data on the conduct of people's financial accounts.

rolling up existing debts into one new loan.

an arrangement for someone with debts not exceeding £20,000, limited assets and little disposable income to write off the debts after 12 months.

an agreement between a debtor and their creditors to pay some of the debts over a set term, usually five years.

when an individual's debts exceed their assets and they cannot meet the loan repayments on the debt

when the borrower fails to make payments on a credit agreement.

a period of at least six months when the amount of goods and services that a country is producing is shrinking. This has wide scale negative effects on the economy economy.