FINANCIAL SERVICES: SAVING AND BORROWING KEY TERMS

Transcript:FINANCIAL SERVICES: SAVING AND BORROWING KEY TERMS:
FINANCIAL SERVICES: SAVING AND BORROWING KEY TERMS Debt: If you are in debt or get into debt, you owe money. Debt relates to money borrowed from someone else, which would need to be repaid normally with interest added. Credit score: A score (between 300 and 850) given to an individual. The scores are based on how much debt a person has, how well they have repaid previous loans, the number of accounts they have and other factors. Interest: The charge for borrowing money, typically presented as an annual percentage rate QUICK-FIRE QUIZ What is the average student debt on leaving University excluding tuition fees (accommodation and living costs)? £7,600 £11,000 £33,000 £4,000 How much average debt does an adult have in the UK? £7,600 £21,000 £8,000 £30,000 If you put £100 in a bank account for a year giving 10% interest, how much interest will the bank give you? £10 £1.10 £1 £0.10 HOW CAN WE CONTROL OUR SPENDING? Avoid spending on things you don’t need: Understand whether you need it or want it Understand whether it is essential or not Explore alternatives that are better value for money: Second-hand/recycled items Discounts from retailers Vouchers available online Become an expert on your money and make it work for YOU! Understand your spending habits Keep to a budget Have a savings plan IF YOU FIND YOURSELF IN DEBT… Don’t panic Acknowledge your debt Seek help – talk to family/close friends or an organisation that provides free advice, guidance and support Get a plan in place There are some great online tools to help you with budgeting, including budget trackers, money health check tools etc.: https://www.tescobank.com/guides/ Don’t be an ostrich and bury your head in the sand. Do something about it! FINANCIAL ADVICE ORGANISATIONS If you find yourself in debt, you can contact these organisations for free financial advice and guidance. Citizens Advice StepChange National Debtline MoneyHelper SAVINGS Safety net Saving for a specific short-term goal Saving for a rainy day Saving to give you peace of mind and less stress Why is saving important? What are the advantages of having savings? TOP TIPS FOR SAVING Open a savings account and transfer a regular amount weekly/monthly, or as much as you can afford – every little helps! You could visit your bank or building society or websites, such as MoneySuperMarket or Tesco Bank (check out tescobank.com) for information about savings. Shop around