Managing my money for young adults
Managing my money for young adults

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Automated Teller Machine typically referred to as a ‘cashpoint’. Also informally known as a ‘hole-in-the-wall’.
bank account
An account held at a bank or building society into which money can be deposited and from which cash can be withdrawn and bills paid. Bank accounts can be either current accounts or deposit accounts.
These are issued by financial and non-financial companies to raise funds to support their business activities. Bonds normally pay interest annually to those investing in them and have a maturity date at which point the investor receives back the money originally invested.
building society
A mutual organisation whose main function is the offering of savings accounts and the provision of mortgages to finance the purchase of property or land.
cash card
A card that has been credited with an amount of cash and that can then be used to settle bills like a debit or credit card.
cheque book
A book of cheques that can be used to withdraw cash at banks or settle bills.
credit rating
The measure or ‘score’ given to you by credit rating agencies based on their assessment of your creditworthiness.
debit card
A card that enables the withdrawal of cash from an ATM (Automated Teller Machine) and the settlement of transactions either physically or online.
An example of an app that enables parents or guardians to pay pocket money to their children via a cash card. The card can be used to make purchases or access cash up to the total amount that has been credited to it. The app can be used to apply conditions to its use – for example where the card can be used or for what items. The app can also be used to set tasks and chores for which extra pocket money can be earned. The app allows parents to monitor how the money credited to the card is used.
The rate paid on bank account balances and savings balances or the rate charged on overdrafts and loans. Interest is expressed as a percentage (%) of the balance, for example 6% per annum (p.a.). per annum means ‘per year’.
A position where the account holder has drawn on their account in excess of the amount of money that has been placed into the account. The account therefore has a negative balance.
An online money transfer and payments system. Note that paying for items on PayPal using a credit card loses your Section 75 protection.
Premium Bonds
These are issued on behalf of the government by National Savings & Investments (NS&I). The bonds pay no interest but are entered into a prize draw each month with prizes of up to £1 million.
Section 75
The section of the Consumer Credit Act 1974 that gives rights for reimbursement for faulty goods etc. which have been purchased with a credit card.
These are issued by companies to raise long-term finance to support their business activities. They normally have no maturity date although investors can sell them, at their prevailing market price, if they require their cash back. Those holding shares may receive dividend payments from the company – typically twice a year. These dividend payments are not guaranteed though. Note that shares are also termed ‘equities’.
Child Benefit
A cash benefit paid in respect of dependent children.
excise duties
A tax on the production or sale of particular goods (e.g. beer and wine).
gross income
Incomes (or earnings) before any deductions for tax and other items.
Her Majesty’s Revenue & Customs (HMRC)
The government body responsible for collecting taxes.
Housing Benefit
A payment to cover rent costs for those living on low incomes and state benefits.
Income Tax
A tax paid on all forms of earnings (including pensions). This tax is normally deducted from earnings by the employer or pension provider.
Income Tax codes
Codes provided to employers and pension providers to inform them how much Income Tax needs to be deducted from the gross salaries on their employees and pensioners.
Inheritance Tax
A tax on the money left (also known as the ‘estate’) of someone who has died.
Jobseeker’s Allowance
A cash benefit paid when unemployed and looking for employment.
National Insurance contributions (NICs)
A deduction from earnings from employment. As with Income Tax, NICs are normally deducted directly from earnings by employers.
net income
Incomes after deductions for tax and other items.
‘progressive’ taxation
A tax structure where the proportion of a person’s income paid as tax increases as their income increases.
Stamp Duty Land Tax (SDLT)
A tax on the purchase of property and certain other assets including company shares (securities issued by companies to raise money).
Value Added Tax (VAT)
A tax on goods and services (known also as a consumption tax).
Universal Credit
A cash benefit that is in the process of replacing other state benefits for those on low incomes or who are unemployed.
‘zero-hours’ contracts
An employment contract where there is no commitment from the employer to the employee in terms of hours of employment each week or month
Approaches to problem solving or decision making that are based on discovery by small steps, where learning (or assumptions) are built up by trial and error.
Universal resource locator (the technical term for a website address).
Office of Gas and Electricity Markets
The bacterium that causes legionnaires’ disease. The bacterium flourishes in air conditioning and central heating systems (including the related piping).
Bank of England
The UK’s ‘central bank’. It issues bank notes, is the government’s banker and is the banker to the banks. The Bank sets ‘official’ interest rates for the UK and has a general responsibility for the financial stability in the economy.
A person who organises a financial transaction (like a mortgage) on your behalf. Brokers are also referred to as ‘intermediaries’ as they operate between (and bring together) the public and financial institutions. Brokers charge a fee for their services.
Financial Conduct Authority (FCA)
 The organisation that regulates the financial services industry and the sale of financial products to the public.
monetary policy
The use of interest rates and controls on the supply of money to help achieve the key objectives for the management of the economy – principally the control of inflation and the level of economic activity.
price inflation
A general rise in price levels within an economy.
secured debt
Borrowing that is contractually linked to the asset you buy with the money like a house or car. If you fail keep up with repayments you risk the asset being repossessed (taken to cover your debt) by the lender.
A thousand billion (a billion is a thousand million).
unsecured debt
Borrowing that is not contractually linked to the assets you buy with the money. If you fail to keep up with your repayments the lender will still have the right to take legal action against you to try to get back the money owing to them.
county court judgments (CCJs)
A court order in England, Wales and Northern Ireland that can be issued against you if you fail to repay money that you owe. In Scotland the process is termed ‘enforcing a debt by diligence’. The equivalent to a CCJ in Scotland is a decree.
An annual pension income for the whole of your remaining life. The size of the annuity depends on the size of your pension pot when you retire. However, the annuity provider (usually the fund management company used to build up the pension pot during working life) will take a slice of the pension pot in charges before what remains is turned into income.
growing longevity
An increase in the average lifespan of a population.
An income for later life and when in retirement.
‘pension pot’
A colloquial term for a pension fund or pension savings.
Stamp Duty Land Tax (SDLT)
A tax on the purchase of property or land. In Scotland the equivalent is Land and Buildings Transaction Tax.

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