EXAM CORNERINTRO ACTIVITY 2025 Q16 (a) (ii)


There are a number of stages in a personal financial life cycle. Each stage has different wants which are funded by different sources of income. Give an example for each of the following statements. Statement


Example


A want for a dependent/reliant person: Source of income for a retired person:


Sweets, toys, holidays Pension, interest on savings, rental income TOP TIP


Be specific when giving a need or want – if you are asked for a want for a dependent person, and you write ‘clothes’ it may not score marks. You would need to write ‘luxury clothing’ or ‘new clothes’, as clothing is both a need and a want, so make sure to clearly show which type you are referring to.


CLASS ACTIVITYINTRO ACTIVITY


Key Skill: Identify types of needs and wants at different stages in life. Here are the different stages of the financial lifecycle: Dependent


Independent Development Pre-Retirement


1) At what stage do you think people are most likely to have these needs/wants: a. Buy a house b. Saving for retirement c. Higher healthcare costs d. Buy a first car


Key Skill: List different types of typical incomes earned across a person’s lifetime.


2) At what stage do you think people are most likely to have these sources of income: a. Pension b. Part-time work c. Pocket money d. Child Benefit


3) Answer true or false for the following statements about the personal financial lifecycle, and then explain your answer:


a. You are most likely to have a mortgage in the dependent stage. b. Childcare costs are likely to be the highest during the development stage. c. Income is usually lower in the independent stage than in later stages. d. A pension is the main source of income in the retirement stage.


27


Retirement


STRAND 1


CHAPTER 3: Personal financial lifecycle


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