Unit 3 Exam Personal and Business Finance PDF

Unit 3 exam Personal and Business Finance In this unit you will sit a 2 hour written exam. The paper will be marked out of 100 with 2 sections. Section A contains questions on the personal finance unit content and approximately one-third of the marks, Section B contains questions on the...

Unit 3 exam Personal and Business Finance In this unit you will sit a 2 hour written exam. The paper will be marked out of 100 with 2 sections. Section A contains questions on the personal finance unit content and approximately one-third of the marks, Section B contains questions on the business finance unit content and approximately two-thirds of the marks. There will be short answers, calculations and extended writing http://www.beebusinessbee.co.uk/index.php/business-qualifications/btec-nationals-business-level-3/ btec-nationals-2016 starter  A1 Functions and role of money Functions of money (what it does), it acts as a : UNIT OF ACCOUNT - this means a value can be given to goods and services (the price or cost of things can be measured) MEANS OF EXCHANGE – this allows people to buy and sell goods (to trade with each other) STORE OF VALUE – it can be saved and spent in the future LEGAL TENDER – it is a recognised form of payment accepted for goods or services Bee The Three Functions of Money - YouTube video 8.2 Role of Money https://www.sporcle.com/games/g/worldcurre ncy This is affected by : Personal attitudes – to risk and reward, saving or spending, borrowing (credit and debt) Life stages – childhood to adulthood, changing financial needs and attitudes Culture – religion, tradition, ethnic background affects saving and borrowing Life events – university costs, marriage, property, illness, financial losses External influences – economic change, jobs wages, taxes, benefits affect spending and saving Interest rates – low rates encourage borrowing and https://www.youtube.com/watch?v=SGoL_xfcxDk&list=PLBuW3SAj0djly2MaKyOzL4cnmeaPbEJj1&index=2 17 mins vid spending, high rates encourage saving.  https://www.youtube.com/watch?v=XSqRf8exwfw Planning expenditure (planning spending) &index=3&list=PLBuW3SAj0djly2MaKyOzL4cnmea A1 Functions and role of money PbEJj1 Bee vid 18.5 mins Principles to consider : Avoid getting into debt – interest payments add to the amount borrowed Control costs – limit spending on unnecessary items, set a budget Avoid legal action, repossession of your goods or valuables Remain solvent – be able to pay for day to day costs and repay debts Keep a good credit rating – be able to borrow money in future (credit scores affect availability of credit and cost of it) Avoid bankruptcy – a situation when debts cannot be repaid – (more in B4) Manage money to fund purchases – be able to buy for cash rather than borrowing Generate income and savings – to provide a safety net against illness or job loss Set financial targets and goals – to purchase a car or house Provide insurance against loss or illness – insure your valuables, holidays, etc Counteract the effects of inflation – buy items before their prices rise. Guidance and activities task Define these key terms task Feedback to class  Task : Rank the principles of Planning personal finance 1-5 1 = least important for you Activity a) 15 mins A3 sheet Define the term MONEY Produce a spider diagram on the different types of money Where it comes from (income) Where it goes (outflows) Why is it needed  Activity Activity c) complete the life stages sheet 30 mins Financial needs at different life stages Life Stage Financial needs Implications or consequences Childhood Adolescence Young adult Middle age Old Age  Computer room task A1 consolidation a) Produce a leaflet or handout on student loans for university (repayment terms, interest rates, rules etc) b) Research the cost of a car loan for a £6000 car – compare three financial providers offers c) Find a diagram on UK interest rates and describe the recent trend (are they low or high compared to the past?) d) Find a diagram on inflation and describe the recent trend e) Identify three personal insurances that an individual may take out and research their costs and details f) Identify three effects of bankruptcy on an individual in UK g) Research the interest rate on savings for a £1000 amount put in a bank or building society h) Produce a slide about the functions of money i) Find out what credit rating and credit history means http://www.experian.co.uk/downloads/con sumer/gettingCredit/gettingCreditDownlo ad.pdf Activity – P drive plenary