Functions and role of money - ANSWER Money flowing in and out- it comes in your ac-
count and money comes out your account
store of value - ANSWER It allows us to use it in the future as it keeps its value
Legal tender - ANSWER It is legally recognized form of payment- old £1 getting rid of
Role of money - ANSWER is affected by a wide number of factors. individuals may change
their attitude to money based on their situation they find themselves in
Personal attitudes - ANSWER individuals that will vary in their attitudes to risk and re-
ward as well as savings and borrowing.
Life stages - ANSWER As you grow up from childhood to adulthood, your financial needs
change, each stage of your life has different implication that will affect not just your needs
but also your attitude to money.
Culture - ANSWER affected by tradition, religion and ethical beliefs, will have different at-
titudes to money. The older generation of Chinese people, for example have a culture a sav-
ing.
Life events - ANSWER Events throughout your life will impact on your attitude to money.
These events may be within your control, for example going to university, travelling abroad,
getting married or starting a family or any be outside your control, example illness, financial
gains and losses
1
, External influences - ANSWER Factors outside your control, including the state of the
economy. For example the state of the economy will impact on wages, availability of jobs
and the prices of goods and services. Decisions by the government will affect the amount of
the tax you pay or the amount you receive in benefits. These all directly affect your ability to
spend and save
Interest rates - ANSWER cost of borrowing money or the reward for saving money
If interest rates are low maybe more willing to borrowing money or spend on credit, when
interest rates are high there is more of an incentive to save
Debt - ANSWER money that you owe
credit rating - ANSWER a score given to individual of how likely they are from previously
debt based on your previous action
solvent - ANSWER the ability to meet day by day expenditure
inflation - ANSWER Inflation is a general risk in prices. This leads to the value of money
falling, that is, £10 today was worth less that £10 a year ago. Expenditure now can help
counter the effect of inflation
cash - ANSWER money in coins and notes
credit cards - ANSWER It's a card that has your money and you can borrow funds
Debit card - ANSWER It's a card that has your own money on it
Cheque - ANSWER Its a printed form used instead of cash to make payments from your
bank account
2
count and money comes out your account
store of value - ANSWER It allows us to use it in the future as it keeps its value
Legal tender - ANSWER It is legally recognized form of payment- old £1 getting rid of
Role of money - ANSWER is affected by a wide number of factors. individuals may change
their attitude to money based on their situation they find themselves in
Personal attitudes - ANSWER individuals that will vary in their attitudes to risk and re-
ward as well as savings and borrowing.
Life stages - ANSWER As you grow up from childhood to adulthood, your financial needs
change, each stage of your life has different implication that will affect not just your needs
but also your attitude to money.
Culture - ANSWER affected by tradition, religion and ethical beliefs, will have different at-
titudes to money. The older generation of Chinese people, for example have a culture a sav-
ing.
Life events - ANSWER Events throughout your life will impact on your attitude to money.
These events may be within your control, for example going to university, travelling abroad,
getting married or starting a family or any be outside your control, example illness, financial
gains and losses
1
, External influences - ANSWER Factors outside your control, including the state of the
economy. For example the state of the economy will impact on wages, availability of jobs
and the prices of goods and services. Decisions by the government will affect the amount of
the tax you pay or the amount you receive in benefits. These all directly affect your ability to
spend and save
Interest rates - ANSWER cost of borrowing money or the reward for saving money
If interest rates are low maybe more willing to borrowing money or spend on credit, when
interest rates are high there is more of an incentive to save
Debt - ANSWER money that you owe
credit rating - ANSWER a score given to individual of how likely they are from previously
debt based on your previous action
solvent - ANSWER the ability to meet day by day expenditure
inflation - ANSWER Inflation is a general risk in prices. This leads to the value of money
falling, that is, £10 today was worth less that £10 a year ago. Expenditure now can help
counter the effect of inflation
cash - ANSWER money in coins and notes
credit cards - ANSWER It's a card that has your money and you can borrow funds
Debit card - ANSWER It's a card that has your own money on it
Cheque - ANSWER Its a printed form used instead of cash to make payments from your
bank account
2
