Saving and Borrowing Flashcards

1️⃣ Familiarise yourself with the flashcards:

Look through all the flashcards to see what's on both sides.
Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

Look at the question or prompt on each card and try to remember the answer before flipping it over.
Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

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Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What does saving mean?

Putting aside some income to use in the future.

Getting money now that you agree to repay later, usually with interest.

For emergencies and to buy big items later, like a car or holiday.

To spread the cost of a large purchase, like a house or car, or to cover a short-term cash gap.

The reward paid by a bank for keeping your money there, shown as a percentage per year.

The cost you pay on top of the amount borrowed, shown as a percentage per year.

AER shows the return on savings per year. APR shows the cost of borrowing per year, including most fees.

They make saving more attractive and borrowing more expensive. People tend to save more and borrow less.

An asset you promise to the lender. If you do not repay, the lender can take it.

A long-term loan to buy a home. It is secured on the property.

Permission to spend more than is in your current account. It is for short-term borrowing and often has high fees or interest.

A card that lets you borrow up to a limit for purchases. If you do not pay in full each month, you are charged interest.