managing personal finance Essay

Submitted By lsdncl
Words: 1027
Pages: 5
Open Document
P3
In this information sheet, I will be explaining different types of financial product and services young people are likely to uses.

Current accounts
Is an account for day to day use that has money which can be used to pay for items or services directly from your bank account. You can deposit and withdraw money from the bank. Usually this is free as the money is paid in by your employer from your job unless you agree to overdraft which can cost interest. A benefit of using current accounts is that your money is safely kept safe in you account instead of in your wallet which is safer in case it’s stolen or lost. Money can be put into the bank account by cash, cheque or electronic transfer. Money can be withdrawn from a ATM, local branch, debit card, cash back or writing a cheque. Keeping money on your account can help to pay for unexpected purchases. An example of currents accounts is the Halifax Reward Current Account a benefit of this account is that its simple overdraft fees and £5.00 reward each month if £1000 paid in to account. The main features of the account includes visa debit card to pay for goods, 24/7 online and telephone banking and support and access to cash machines and branches all around the country and aboard. An planned overdraft of up to £1,999.99 has a charge of £1.00 daily fee but between £2,000 to £2,999.99 includes a fee of £ 2.00 daily above this is a £3.00 daily charge. If you makes a unplanned overdraft the for any amount the daily fee is £5.00.

Savings account
Savings account is deposit account held in a bank where a customer can save keep money in a account usually it is for a long term bases. In addition, the bank also pays a small amount of interest to savers. The benefit of using a savings account is that higher the saved money the higher the interest rate. Interest is usually paid annually directly to the account by the bank. You can lose your interest if you take out the money regularly. An example of savings accounts available in the market includes the NatWest e-ISA account this account allows you get tax free interest which mean that interest payable is exempt from UK income tax. The AER Annual Equivalent Rate is the rate of interest a saver will receive over a year assuming the cash is left in the account for the full year for NatWest this is 1.75% if the balance is between £0-£9,999. The account is a online account.

Insurance protection
Insurance is a way of avoiding hardship if a disaster happens. Insurance protection is when you take out a insurance from the following building, car, travel, home content, health, pet, breakdown, life and income protection. The aim of taking insurance is if something awful happens, you are covered by the insurance companies they will put you back in the financial position you were in before the event. The payments made to insurance companies are usually made monthly or yearly.

Life assurance
Life assurance is a policy you take out to guarantee a payment for your family. This policy is different to insurance as you insure your life in case you die before a certain date. They is usually a charge for setting up the necessary things for the assurance. The policy will pay out but if you survive beyond the nominated date the company will not pay nothing to your dependants.

Mortgage
Mortgage is a type of loan you usually take from a bank to purchase a house or flat. Before you buy the property you pay a small deposit then pay monthly payments. A mortgage is a secured loan as the you starts running the risk of losing your home if you don’t pay. When choosing a lender the key factor is interest rates. The amount of deposit required and the interest rate depends on the amount of money borrowing and for how long. A common term to pay off a loan is 25Years as the years go on the interest rate lowers down. A
Show More

Related Documents: managing personal finance Essay

Personal Finance Course Analysis

Learning and managing your money is an important skill that you can have due to the fact that the financial decisions you take will either be good or bad. A great source to use is an online course called, “Foundations in Personal Finance,” which is constructed to help you with your finance and life skills. I believe that all high school students should be required to complete the Dave Ramsey Personal Finance Course because there are many chapters that include: Introduction to Personal Finance, Saving…

Words 492 - Pages 2

How To Prepare A Business Plan

8 9 Market research 8 10 Profiling customers 8 11 Profiling competitors 9 12 Managing market risks 9 13 Pricing 9 14 Promotion and advertising 10 Running the business 11 15 Staff 11 16 Premises 11 17 Suppliers 11 18 Equipment 12 19 Managing operational risks 12 Finance 13 20 Start-up costs 13 21 Profit and loss forecast 15 22 Sourcing finance 16 23 Managing financial risks 16 24 Cash flow forecast 17 | |…

Words 935 - Pages 4

Personal Finance and Microsoft® Word Attachment Essay examples

Guide College of Humanities FP/101 Version 5 Foundations of Personal Finance | Copyright © 2012, 2011, 2010, 2009 by University of Phoenix. All rights reserved. Course Description This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes, working with financial…

Words 3295 - Pages 14

Corporate Social Responsibility Essay

Finance, what goals do I have? First and foremost I want to be successful in this class and maintain good grades. I want to gain a better understanding of finance not only for my future professional goals but also on a personal level. Finance is a big part of not only business but your life, from paying for college to buying a home and retiring. I want to have that better outlook on how to manage my money and what I should invest in to help secure a good future for myself and my family. Saving…

Words 412 - Pages 2

Managing Financial Resources Essay

Managing financial resources and decision 1,1-identify the source of finance available to a business A brunch of economies concern with resource allocation as well as resources management, acquisition and investment. Finance deal with matters related to money and the markets. Finance means to supply with money or capital;obtain money or credit for. There are three main sources available for a bisiness: 1)business angels 2)venture capital 3)business growth divided in: -internal sources -external…

Words 444 - Pages 2

intermediate accounting 2 test bank Essay

Intermediate Accounting Kieso 15th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://www.solutionsmanualtestbanks.com/2013/05/intermediate-acc ounting-kieso-15th-edition-test-bank.html Intermediate Intermediate Intermediate Intermediate Accounting Accounting Accounting Accounting Kieso Kieso Kieso Kieso 15th Edition Test Bank 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank…

Words 8328 - Pages 34

Econ Article Essays

South Florida wholesale company. Helping with the family business allows the 17-year-old to learn valuable lessons about business finance. One such lesson is that a recession, like the one that has gripped the U.S., makes the challenging task of running a business even tougher. Phyllis greeted the challenge as an opportunity, signing up for a class in personal finance. In recent years, an increased number of high schools have started offering such courses—and they have been well received by students…

Words 723 - Pages 3

Essay Price: Investment and Good Market Depth

Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process of acquiring needed funds. The market's ability to sustain relatively large market orders without impacting the price of the security. This considers the overall level and breadth of open orders and usually refers to trading within an individual security. Market depth is closely related to liquidity and volume within a security, but does not mean that every stock showing a high…

Words 289 - Pages 2

Managing Money Essay examples

MANAGING YOUR MONEY 101 It is not easy to manage money, but this is a very important part of becoming an independent adult. When you start your first job (which will probably be a part-time job), you will be expected to take on some of the financial responsibilities for your own care that were previously met by your parents or guardians. Perhaps you will have to buy your own clothes. “You will have to learn to live within your means, which means, spending no more that you earn, or not buying things…

Words 543 - Pages 3

Essay about Personal Financial Plan Part Five

Personal Financial Plan Part Five Adrienne Vermette FIN/101 April Miller, Instructor March 19, 2014 Personal Financial Plan Part Five Life Stage Adjustment Today life is a little bit more complicated and a little bit more unpredictable. Your financial life really depends on what stage of life you are in. Chiseling out a winning personal finance plan today is increasingly less about how old you are and more about what stage of life you're in (Shell, n.d.). College is pretty much a must…

Words 1304 - Pages 6