| a need is something we simply cannot do without. it is essential for our survival | what is a need |
| a want is something that we would like to have. it may improve our life but it is not essential for our survival. | want |
| a resource is anything that we can use in order to meet our needs or achieve our goals | what is a resource |
| physical/capital resources, natural resources, financial resources, human resources, time resources | types of resources |
| goods that are made by people, eg. vehicles, books | physical/capital resources |
| resources provided by nature, eg. land, water | natural resources |
| all types and sources of money, eg. savings, employment income. | financial resources |
| all your skills, abilities and experience, eg. an ability to read/write, creativity | human resources |
| most limited resource, cannot earn, borrow or buy more time, valuable resource | time resources |
| priority spending | how do you make use of financial resources |
| financial cost and opportunity cost. | what are the two costs when you buy something |
| 'next best thing' is the benefit, profit or value of something that must be given up in order to get something else | opportunity cost |
| income refers to the money coming into a person or household. it also refers to all of the money received over a period of time | what is income |
| wages, salaries, pensions, benefits, dividends, interest on savings, windfall | most common sources of household income |
| BIK household does not receive any cash but is provided with goods or services that have a money value | benefits in kind |
| incomes such as wages, salaries, child benefits, pension which are received every week or month | regular income |
| additional income received for working extra hours, or as a reward for meeting certain targets or windfall. the timing and amount of these income sources are less predictable and cannot be guaranteed | irregular income |
| fixed annual payment made to an employee as a reward for work | salary |
| payment received for work done | wage |
| time rate, overtime pay, piece rat, commission, bonus pay, | different methods of calculating wage |
| amount earned before any additional payment | basic pay |
| the entire amount of income before any deductions are made | gross pay |
| employees income after all deductions are taken from gross pay | net pay |
| statutory
voluntary | name two types of deductions |
| pay as you earn
tax is levied on the income as it is earned and is deducted at source | paye |
| public relations social insurance
provides them with benefit entitlement should they require them. eg. pension | prsi ireland tax |
| universal social charge
applies to all workers whose income exceeds a certain limit | usc |
| extra money deducted for pensions, savings, trade union | voluntary deductions |
| income that remains when all income taxes and compulsory payments have been made. some of it will be required for essential spending | disposable income |
| the income left over after taxes and essential spending is called discretionary income | discretionary income meaning |
| refers to the way people choose to spend their money | expenditure |
| important items of expenditure that involve the same amount of money being spent on a regular basis, mortgage repayments or rent etc | fixed expenditure |
| occur on a less regular basis and amounts tend to vary with usage for example groceries or clothing | irregular expenditure |
| spending on non essential items that we choose to buy, satisfies our wants for eg. entertainment, holidays | discretionary expenditure |
| continuous and regular | current expenditure |
| far less regular and will generally not be repeated for a long time E.G a laptop or tv | capital expenditure |
| prepare budget, prioritize expenditure, false economies, opportunity cost , impulse buying, check bills | effective spending |
| is a purchase that initially appears to be good value for money but in the longer term turns out to be more expensive | false economy |
| reflects a series of stages that a person goes through throughout their life and helps a person adjust their financial needs at each stage of their life. | personal financial life cycle |
| reliance stage (0-18) independent stage (19-24) developing stage(25-35) pre-retirement (36-64) retirement (65+) | stages of cycle |
| made up of everything you own | estate |
| a legal document containing instructions for what should be done with personal money and property after death | will |
| employment status, age no. of dependents, health status, economic outlook, marital status | factors that will impact financial planning |
| fund into which payments are made during a persons employmetn years and from which payments are drawn to support the persons retirement from work because of age or ill health. | pension |
| financial plan that sets out expected future income and expenditure | budget |
| live within means, think about spending, identify months when there are a lot of bills and expenses, plan for large items | why prepare a budget |
| income exactly equals expenditure | balanced budget |
| when income is greater than expenditure | budget surplus |
| expenditure is greater than income | budget deficit |
| person who buys goods or services for their own use | consumer |
| something that you buy that you can touch or see | good |
| something that is done for you | service |
| value for money, high quality products, good after sales service, info about product | most consumer requirements |
| do i really need it?
can i afford it?
do i have space for it in my home?
are there any hidden extra charges? | what should a consumer ask themselves before buying? |
| name, weight, price, ingredients, nutritional info, barcode etc | info about products |
| when a purchase which seems to be cheaper in the short run actually seems to be more expensive in the long run. | false economy |
| supermarkets own products | own label branded products |
| the Consumer's association of ireland is an independent organisation, represents irish consumers and seeks to protect their rights | what is the CAI? |
| let the buyer beware latin | caveat emptor |
| behave wisely
avoid impulse buying and false economies
shop around for the best value for money | consumer responsibilities |
| law protects you when you buy goods from a trader and the goods are intended for your own consumption | sale of goods and supply of services act 1980 |
| merchantable quality
fit for the purpose
be as described
conform to the sample shown | sale of goods and supply of services act 1980 for goods |
| necessary skills and qualification, care and attention, merchantable quality | sale of goods and supply of services act 1980 for services |
| refund, replacement, repair | three forms of redress |
| sale of goods and supply of services act 1980, receive if you purchase something that is damaged or faulty, entitled to form of redress | redress |
| sale of goods and supply of services act 1980
complaints must be dealt with by the seller
retailers must respect consumer's rights
retailers cannot display signs that limit reponsibilities
guarantees and warranties are an addition to consumer rights but do not replace them | seller's responsibilities |
| promise by the manufacturer or company that it will sort out any problems with a product or service within a specific fixed period of time | guarantee |
| insurance policy for which you must pay a premium | warranty |
| provides protection to consumers regarding misleading claims about goods, services and prices | consumer protection act 2007 |
| misleading, aggressive, prohibited | unfair commercial practices |
| false or untrue info is used to deceive the consumer | misleading |
| harassment, physical force or influence is used to force a consumer into buying a product | aggressive |
| forbidden by law | prohibited |
| stop use, bring item back, explain problem, decide redress, send written complaint,seek advice of third party, small claims procedure, go to court | how to make a complaint |
| change your mind, misuse of a product, told about fault | when is a consumer complaint not valid |
| ccpc, CER, ComReg, FSO, office of the Ombudsman, small claims procedure | help with a consumer complaint |
| provide info, conduct research, represent consumers | ccpc |
| resolves complaints about energy companies | cer |
| protects consumers of communication businesses | comreg |
| investigates complaints from consumers about financial service ombudsman | Fso |
| investigates complaints from people who have been treated unfairly by a public body | office of the ombudsman |
| quick cheap easy way to resolve complaint about a faulty good or poor work by a service provider | small claims procedure |
| refers to the way in which services and goods are made, sold and used in a country or area. | economy |
| method by which countries distribute economic resources and trade goods and services | economic system |
| centrally planned economy
a free market economy
a mixed economy | types of economic systems |
| illustrates the movement of economic resources and wealth throughout the economy. | circular flow of income |
| any attempt to start or do something new | enterprise |
| person who takes the initiative and risk to set up a business in the hope of making a profit | entrepreneurs |
| realistic risk-taker
innovative
proactive
flexible
self-confident
decisive
determined | characteristics of entrepreneur |
| identify opportunities
make decisions
plan and set goals
manage time/stress
human relation
reality perception
assess and manage risk | skills of entrepreneur |
| be your own boss
spot gap in market
keep all profits
currently unemployed
flexible hours
make decision | reasons for starting a business |
| lose money
work long hours
income not guaranteed | risks |
| establish business's to make a profit | financial enterprise |
| puts people and community ahead of private and personal gain | social enterprise |
| provides consumers either locally or nationally with access to cultural experience | cultural enerprise |
| come up new ideas for the business they are working in | intrapenerur |
| resources that are limited in supply or that cannot be replace | non renewable sources |
| are not limited in supply that wont run out and that can be regrown, reused and recycled | renewable resources |
| process of balancing the social, economic and environmental systems for the well being of individuals now and in the future | sustainability |
| meets the needs of the present without compromising the ability of future generation to meet their own needs | sustainable development |
| means using resources in a way that meets current needs but also preserves the resources for future generations. | sustainable use |
| right and wrong | ethics |
| are produced in a way which is kind to the evironment | ethical goods |
| voluntary act of protest in which consumers refuse to buy from or deal with a particular company | boycott |
| corporate social responsibility refers to organisations acting to benefit society and /or the environment | CSR |
| the process by which the world becomes interconnected as a result of increased trade and cultural exchange | what is globalisation |
