AWA 10Soc Credit and Finance

Loan sharks are usually cheaper than hire purchase

p.a. is written after interest rates it means price of assets.

$1000 invested at 17 in a Kiwisaver 'growth' fund will be worth about _________ at retirement

Credit card debt is usually more expensive than hire purchase

You can use Kiwisaver savings as a deposit any time you buy a house

Discretionary spending is the money you have to spend on essentials e.g. rent 

Disposable income is the money you earn before taxation and student loans repayment.

Credit means when you lend money to someone else

Finance charges are higher than the interest rate.

Interest is the cost of borrowing money.

The interest rates are normally higher on savings than borrowing

Mortgages are cheap because there is low risk as the bank gets your house if you don't pay.

If you borrow on Hire purchase it is likely to be more expensive than a mortgage

Kiwisaver accounts are the best investment because you get a 100% return on the money

To work out how quickly money invested doubles, divide 72 by the interest rate

Interest rates are worked out on what you would pay if you borrowed the money for a year.

The Finance charge usually  includes interest and administration fees