today you will learn about... understanding what finance is identifying financial services and...
TRANSCRIPT
Today you will learn about. . . Understanding what finance is
Identifying financial services and products you will need throughout your life
Understanding credit
Avoiding debt
• Day-to-day banking– Current and cheque account– Savings account– In-bank or on-line?– Credit Unions
• Loans• Insurance• Investments
What are you signing for?
Cash Card
Debit Card
Credit Card
Cheque Book
Credit card (Visa, MasterCard)Interest charged if balance not cleared
Debit card (Visa, Switch, Maestro)Taken automatically from your bank account
Charge cardAccount must be cleared each month
Store card (Topman, M&S, Next)BIG INTEREST – absolutely must be cleared on time!
StorecardTypical
interest rateMinimum payment
Total interest cost
Total amount repayable
Time taken to clear debt
John Lewis Account
13.00% £5 or 5% £38.21 £238.21 3 years 3 months
M&S Money Store
18.90% £5 or 3% £94.21 £294.21 4 years 8 months
B&Q You Can Do It
26.80% £4 or 4% £139.80 £339.80 5 years 8 months
House of Fraser
Recognition29.30% £4 or 4% £163.42 £363.42 6 years 1 month
Debenhams Account
29.90% £4 or 4% £169.61 £369.61 6 years 2 months
Topshop Privilege
29.90% £4 or 4% £169.61 £369.61 6 years 2 months
Argos Store 25.90% £2 or 3% £284.79 £484.79 13 years
Homebase Account
25.90% £2 or 3% £284.79 £484.79 13 years
Source: thisismoney.co.uk
Easy to get into; difficult to get out of!Average household debt: £54,000
Average student debt: £9,400
Watch out for:
Mortgages – loans – overdrafts – drink – drugs – loan sharks – charge cards –
catalogues
DON’T BURY YOUR HEAD IN THE SAND!
Communicate with your creditorsPrioritise your debt
Answer letters promptlyBe honest with yourself
