Personal Finance is an option module for students studying Accounting and Finance. This document covers: savings, why it is important to have savings, risks associated with saving, reasons for saving, household savings ratio, who is better at saving, capital risk, tax risk, interest rate risk, infl...
Coursework Guidance (Report) - PERSONAL FINANCE module
Coursework Guidance (Presentation) PERSONAL FINANCE module
Estate Planning - PERSONAL FINANCE - Lecture 11 notes
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London South Bank University (LSBU)
London South Bank University
Personal Finance (BAF6PFI)
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Module: Personal Finance
Lecture 5 – Savings
Learning Objectives
Why it is important to have savings
Risks associated with saving
The benefits of compound interest for savers
The important of making sure that savings are tax effective
Different types of saving accounts
Tax havens when it comes to savings
Savings
Safe storage of funds for future use
Reasons for saving (1)
TRANSACTIONS motive:
For the exchange of goods
Need to provide funds for housing, retirement, holidays, taxes and other
expensive items
Reasons for saving (2)
PRECAUTIONARY motive:
Emergency funds, in case the unexpected happens
House maintenance
Car repair
‘Saving for a rainy day’
Reasons for saving (3)
SPECULATIVE motive:
To invest
Holding money to earn profits on it
To start a business
Household Savings Ratio
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