- Quick & easy method
- Interest free
- Goods paid for immediately
- Less risk of debts
Methods of payment - Quick & easy method
- Safe paying by post
- Owner only signs cheque so less chance of bad debts
- Not easy to steal
- Record kept
- Disadvantages of a cheque
Savings - Putting money aside each week or month.
- May be for a specific item e.g. a holiday or just to have for emergencies.
- Better to save money in a financial institute
- e.g. Post Office, Credit Union, Bank, Building Society.
- Your choice of saving scheme will depend on
- (a) Interest paid
- (b) Ease of withdrawal
- (c) Security
- (d) Tax – tax-free or D.I.R.T.
Advantages and Disadvantages of Saving - Advantages
- More security, less
- worries
- Cope better with unexpected payments
- Less risk of bad debts
- Good example to children
- Avoids paying on credit
- Safer than money kept at home
- Disadvantages
- Interest can be really low
- Money may not be easily available
Credit Buying - Credit means that you buy now and pay later
- Buyers borrow money to buy goods and pay it back later usually with interest.
- Often used to buy large items like houses and cars but can be used for small things too like furniture or electrical goods.
Forms of Credit - Bank Overdraft
- Loan from bank, building society, credit union
- Mortgage (for land or buildings only)
- Hire Purchase
- Credit cards
- In-store card
- Interest -free credit
Do'stlaringiz bilan baham: |
