LIBF Unit 2 KEY Questions And CORRECT Answers

Budgeting Managing day-to-day money to pay bills,buy food, save and pay for other essential spending. Credit Card Form of borrowing offered by banks, building societies and some specialist firms It allows card holders to borrow money by using the card. It is normally the most expensive way to borrow, unless paid in full every month. Emergency Fund A pot of money that can be used to cover emergencies, such as unexpected spending, loss of income and other unexpected financial problems. Financial conduct authority One of the two main regulators of financial services in the UK. It sets rules and standards that providers must meet. Financial Planning Making plans to meet short and long term needs. Money Management The process of managing money, including budgeting, banking, saving, investing and tax planning