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Financial Literacy
Glossary
Teaching literacy and numeracy
through financial literacy
Foreword
The Welsh Assembly Government is committed to improving the basic skills of people of all ages in
Wales. The Words Talk – Numbers Count Strategy is an ambitious strategy and if we are to make a
difference we need to be ambitious.
If we are to make a real difference to people’s lives we must explore as many opportunities as
possible to engage or re-engage them in learning. People need to know how to manage their money
and that requires both literacy and numeracy skills. Financial Literacy is a context which is relevant
and meaningful to people of all ages. It is a way of engaging people in learning and showing them
why basic skills are so important.
We have been greatly encouraged by the interest and support shown for our activity to date. As part
of our basic skills through financial literacy projects, our aim is to produce resources which will help
teachers, tutors and learners in a wide range of situations. We hope that you are pleased with this
resource and that it will become an invaluable aid in your work.
Toni Schiavone
Executive Director: Wales
The Basic Skills Agency
FINANCIAL LITERACY GLOSSARY
1
© The Basic Skills Agency, Commonwealth House,
1–19 New Oxford Street, London, WC1A 1NU
All rights reserved. No part of this publication may be photocopied,
recorded or otherwise reproduced, stored in a retrieval system or transmitted
in any form or by any electronic or mechanical means without the prior
permission of the copyright owner.
ISBN: 1 85990 427 0
Design: Studio 21
Published December 2006
2
FINANCIAL LITERACY GLOSSARY
Aa
ACCOUNT
This is the service provided by a bank or building society that holds money for you. A current
account is an everyday account for money to be paid in or taken out – it helps you budget and
manage your money and pay for things in a convenient and secure way. A deposit account is used
for saving money.
AER
Stands for Annual Equivalent Rate and applies to savings. This refers to the yearly rate of interest,
taking into account how often the interest is added to your account. AER is a good way of comparing
different savings. The higher the AER, the better the return on your savings.
AFTER TAX
Means what you are left with after tax has been paid. You must pay tax on most types of income
(such as interest from savings, earnings from your job and pensions), but everyone has some
income tax-free.
ANNUAL FEE
A charge that is made every year, for example, for having a credit card.
ANNUALLY
Every year.
APR
Stands for Annual Percentage Rate. This tells you the cost of a loan, taking into account the interest
you pay, any other charges and when the payments fall due. APR means you can easily compare
loans, for example, a loan with an APR of 15% is more expensive than one with an APR of 11%.
ATM
ATM stands for Automated Teller Machine. These are also known as ‘cash machines’. You can find
them in many places including banks, shopping centres and railway stations. In order to be able to
use an ATM, you need a cash withdrawal card and a Personal Identification Number (PIN).
AVAILABLE CREDIT
This is the amount of money a store card or credit card company will lend you now. That is, the
maximum amount of money they will lend you (your credit limit), take away the amount you have
already borrowed. You can use this money to buy goods or as a loan.
FINANCIAL LITERACY GLOSSARY
3
Bb
BALANCE
Your balance is the amount of money you have in your bank account at any particular time or which
you owe on your credit or store card. It will be shown on a statement.
BANK
A company that offers various financial services and products, such as bank accounts, mortgages
and financial advice.
BANK LOAN
You can borrow money from your bank and pay it back, plus interest, over an agreed period of time.
BANKRUPTCY
If you have lots of debts you cannot repay, as a final resort you may be made bankrupt. The things
that you own, for example, house or car, may be sold to pay people to whom you owe money.
Bankruptcy may not be your only option, and may not be the best option for you.
BASIC BANK ACCOUNT
A service from a bank or building society that lets you pay in money, withdraw cash and pay bills. It
doesn’t let you spend more than you have in your account.
BENEFITS
Money that you can get from the government to help with the cost of living if you have certain
special circumstances, for example, if you are too ill to work. Also known as State Benefits.
BORROWING
Getting money from someone else that you intend to pay back. You might borrow from friends or
family, or take out a proper loan with a bank or another financial company.
BOUNCED CHEQUE
A cheque that the bank refuses to pay because there is not enough money in the account of the
person who wrote it.
BUDGET
A detailed plan of your spending.
BUILDING SOCIETY
An organisation that is owned by its members, who are some or all of the customers saving with or
borrowing from the society. They often offer a range of financial services and are similar to banks.
BUILDINGS INSURANCE
This type of insurance pays out if your home is damaged. For example, it may cover you if tiles fall
off your roof during a storm, or if your house is damaged by fire.
4
FINANCIAL LITERACY GLOSSARY
Cc
CALENDAR MONTH
The months on the calendar, for example, January, February, etc. Calendar months are generally
longer than four weeks.
CAPITAL
The amount of money you originally have to save or invest, before any interest or other return or loss
is taken into account. It could also be an amount of money that you have borrowed.
CASH
Cash is the simplest way of buying something. It is not a good idea to send cash payments
through the post, but you can pay bills, such as for gas and electricity, in cash through post offices
and banks.
CASHCARD
Cashcards, or cashpoint cards, are the simplest type of account cards. They can usually only be
used at cash machines (with a Personal Identification Number, or PIN) to withdraw cash, check your
balance or print out a mini-statement.
CCJ
Stands for County Court Judgment. This is when a judge orders you to pay back money that you owe
on a monthly basis. You should agree with the person that you owe money to how much you will pay
each month. If you cannot both agree on the amount, then the court will decide for you.
CHARGES
Fees and interest that you have to pay, for example, when you borrow money.
CHEQUE
A cheque is a way of paying somebody directly from your bank account. Instead of handing over
cash, you write an instruction for the bank to take money out of your account and pay it to the
person named on the cheque (the ‘payee’).
CHEQUE GUARANTEE CARD
A plastic card that is issued by a bank or building society and guarantees that the amount of money
on any cheque you write will be paid, whether or not there is enough money in the account. There is
a limit to the amount that is guaranteed – £100 or £250 are common amounts.
CHILD BENEFIT
Child Benefit is a regular payment made to anyone bringing up a child or young person.
CHILD TAX CREDIT
All families with children can get Child Tax Credit (CTC) if their income is under a certain amount
each year. This amount changes each year.
CHILD TRUST FUND
A government proposal to give every child at birth a sum of money to be paid into a special account.
On reaching the age of 18, the child would be able to take out the money, which should have
increased in value over the years.
FINANCIAL LITERACY GLOSSARY
5
CITIZENS ADVICE BUREAU (CAB)
A local office where you can get help with a range of problems, including your finances or debts.
To find your local CAB, look in Yellow Pages or ask at the local library.
CLEARING
Clearing is the time it takes between paying a cheque into your account and the money being available to
spend or take out. If you pay a cheque into an account, the money will not be available for several days.
COMPULSORY EXCESS
This applies to insurance and is the amount of money that you would have to pay yourself if you
make a claim.
CONSOLIDATION LOAN
This is a loan that can cover all your existing debts, such as credit cards and other loans. This
means you only have one payment to make but such loans can be expensive and may involve
making payments over a very long period.
CONTENTS INSURANCE
You buy contents insurance to cover your possessions in your home. The insurance may pay for
damaged or stolen items to be replaced. The amount of money that you have to pay for this insurance
will depend on where you live, how big your house is and whether you have a lot of valuables.
COUNCIL TAX
Tax paid to your local council for local services, for example, libraries, police and local roads.
COUNCIL TAX BENEFIT
If you need financial help to pay your council tax bill you may be able to get Council Tax Benefit.
CREDIT
An account that is ‘in credit’ means that there is some money in it that is available to be spent.
If you obtain goods or services ‘on credit’, it means that someone (for example, a bank or credit
institution) has given you the money to make the purchase – they have credited you with the money.
You must pay the money back.
CREDIT CARDS
Credit cards are available from most banks, and allow you to borrow money up to a certain limit.
When you buy something with your credit card, the amount you spend is added to your total
borrowing. Every month you are sent a statement to show how much you have borrowed and how
much you need to repay. If you don’t repay the full amount, you will start paying interest. You can also
get money from cash machines with most credit cards, but this is also borrowed money and will be
added to your monthly bill. This can be very expensive as you start paying interest immediately.
CREDIT HISTORY
If you do not pay your credit card on time or have a history of not paying back other loans, this will
be shown on your file held by a credit reference agency. When shops or banks check your history
and see this information, you may find it very difficult to get a loan. This is also referred to as your
credit record.
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FINANCIAL LITERACY GLOSSARY
CREDIT LIMIT
The maximum amount the store card or credit company will lend you at any time.
CREDIT RECORD
Your details held by a credit reference agency as described below.
CREDIT REFERENCE AGENCY
An agency that holds financial information about you, for example, other loans or mortgages that
you have and whether you have paid all your debts on time. This is known as your credit history or
credit record.
CREDIT UNION
A non-profit-making co-operative savings association that makes loans to its members at low
interest rates and encourages saving.
CURRENT ACCOUNT
A bank or building society account that helps you to manage your money, pay bills, cash cheques
and keep money secure. It includes more services than a basic bank account – for example, you will
get a chequebook.
FINANCIAL LITERACY GLOSSARY
7
Dd
DEBIT
Money that is taken out of an account is ‘debited from’ that account.
DEBIT CARDS
Debit cards can be used to pay for many things without using cash or a cheque. Some cards can be
used in a cash machine (or ATM). When you make a payment or withdraw cash with your debit card,
the money is taken straight out of your account electronically. You cannot borrow money on a debit
card. It is useful when paying in shops, shopping by phone or on the internet.
DEBT
If you are in debt you owe money to someone, for example, a bank.
DEFAULTED
This means that you have failed to pay an amount of money that you owed someone by the agreed
date.
DEPENDANTS
People who rely on you financially. This is usually children who live with you, but it could be elderly
relatives or someone you care for.
DEPOSIT
An amount of money that you pay to someone to make sure that you get an item that you want.
DIRECT DEBIT
A direct debit is an arrangement where you instruct the bank to pay money from your account to pay
bills and other amounts automatically. The company you are paying automatically requests the
amount from the bank directly. You are told in advance how much money will be paid out of your
account and the amount that will be taken.
DISCOUNT
When you are given money off something that you buy and you therefore pay a reduced price.
DISPOSABLE INCOME
The money that is left after all your expenditure and debts have been met.
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FINANCIAL LITERACY GLOSSARY
Ee
EMPLOYEE
Someone who is paid to work for someone else. The person you work for is called your ‘employer’.
EXPENDITURE
Your expenditure is the money you spend. It includes things like:
• rent/mortgage
• catalogue repayments
• council tax
• clothes and shoes
• food
• household items
• water, gas and electricity
• loan/credit card repayments
• telephone
• car tax
• transport
• car insurance
• childcare
• household insurance
• TV licence
• alcohol/cigarettes
• mobile phone
• other expenses
EXPIRY DATE
This is shown on your bank cards and tells you the date that you can use the cards until. You will be
issued with a new card automatically.
FINANCIAL LITERACY GLOSSARY
9
Ff
FEE
A sum of money you pay a company or person for the use of their services.
FINANCE COMPANY
A company that makes money by lending to people who want to buy goods on credit. For example,
a finance company will lend you the money to buy the item you want, and you will need to pay back
the money, as well as interest, within a certain amount of time.
FINANCIAL
Anything to do with money.
FINANCIAL ADVISER
An individual or company that can give you advice on your finances and can arrange financial
products for you to buy. Some financial advisers will recommend products that are available from all
companies, but some will just recommend products that their own company sells.
FINANCIAL RECORDS
These will include statements, bills, receipts, etc. You should keep all financial information that you
receive in a safe place.
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FINANCIAL LITERACY GLOSSARY
Gg
GROSS
Indicates an amount from which certain items have yet to be deducted.
GROSS INTEREST
Interest on savings before any tax is taken off.
GROSS PAY
‘Gross pay’ is your wages before the income tax and National Insurance are deducted, but the actual
amount you receive is called your ‘net pay’.
FINANCIAL LITERACY GLOSSARY
11
Hh
HEALTH INSURANCE
There are many types of health insurance – some give you a lump sum if you become ill, others pay
you a regular income while you can’t work. Some health insurance pays for your treatment at a
private hospital – and lets you jump the waiting list.
HIRE PURCHASE
You take away the goods and can use them. You have to make regular payments and after a set
length of time, when the goods have been paid for, they will become yours. Cars are often bought
this way. You do not own the car until you have completed the hire purchase agreement – so you
will not be able to sell the car until you have paid for it.
HOUSING BENEFIT
If you are on a low income and need financial help to pay all or part of your rent, you may be able to
claim Housing Benefit.
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FINANCIAL LITERACY GLOSSARY
Ii
IDENTITY FRAUD
This is when somebody impersonates you without your knowledge or agreement, and uses your
personal information in order to obtain money, goods or services.
INCAPACITY BENEFIT
If you are unable to work because of illness or disability, you may be able to claim Incapacity Benefit.
INCOME
Your income is the money you have coming in. It includes things like wages, benefits, money from
savings and your pension.
INCOME SUPPORT
If you cannot be available for full-time work and do not have enough money to live on, you may be
able to get Income Support benefit.
INCOME TAX
Money that is taken from your income and paid to the government to pay for services such as
hospitals, schools and armed forces.
INSTALMENTS
Weekly or monthly repayments made to pay off a loan or goods that you have bought on credit.
INSTANT ACCESS
Means you can get your money out of a bank account immediately without having to wait any length
of time.
INSURANCE COVER
Insurance is a way of protecting yourself or others in the event of an accident or illness.
INSURANCE PREMIUMS
This is the money you pay to the insurance company. Some premiums are paid monthly, others are
paid annually or may be paid on a different basis.
INTEREST
The reward you get for depositing your money to, say, a bank or a building society. Also, the cost you
are charged when you borrow money. It is usually worked out as a percentage of the money you
have borrowed. For instance, if an interest rate is 10% and you borrowed £100, the interest you
have to pay will be 10% of £100 (£10).
INTEREST RATES
This is the percentage that is paid on savings or loans. For example, a savings account offering
an interest rate of 10% would give you a better return than one offering 5%. Similarly, a loan with
an interest rate of 20% will cost more than one with a rate of 15%.
INVESTING
‘Investing’ money is putting money away for the future in the hope that it will grow in value. Some
investments are riskier than others, and some may not guarantee to return all your money.
FINANCIAL LITERACY GLOSSARY
13
INVESTMENT
There is a difference between saving money and investing money. When you invest money, you need
to make sure that you do not need the money immediately; in fact you will probably have to leave
the money for up to 5 years or more. There is also a risk that you may lose some or all of your
money. There are lots of different options for investing money and these would need to be carefully
considered.
ISA
ISA stands for Individual Savings Account. This is a type of saving/investment that will grow tax free.
You do not have to pay tax on any income you decide to take from your ISA. There are different types
of ISAs; your bank, building society or financial adviser can give you advice on these.
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FINANCIAL LITERACY GLOSSARY
Jj
JOBSEEKERS ALLOWANCE
If you are of working age but are unemployed and actively seeking work, you may be able to claim
Jobseekers Allowance. This would provide a regular amount of money until you are able to find a job.
FINANCIAL LITERACY GLOSSARY
15
Kk
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FINANCIAL LITERACY GLOSSARY
Ll
LANDLORD
If you rent a property, this is the name given to the owner of the property.
LIFE INSURANCE
This type of insurance pays out a lump sum to your family if you die.
LOAN
An amount of money that you borrow. You have to pay this money back over a set period of time,
and also pay interest on it.
LOAN SHARK
Someone who lends money and charges a very high rate of interest.
LOYALTY CARDS
Loyalty cards are offered by some shops and supermarkets to encourage people to shop there. You
cannot usually use your loyalty card to pay for anything, but every time you spend money at that
shop you will be given ‘points’ on your card. When you have saved enough points, you may be able
to use them to get vouchers to help pay for your shopping, or perhaps other things such as trips.
LUMP SUM
A lump sum is a one-off payment. For example, some insurance policies pay a lump sum if you have
an accident or become ill.
FINANCIAL LITERACY GLOSSARY
17
Mm
MAXIMUM WITHDRAWAL
Most cash machines check your bank account before giving you any money and will not give you
more than there is in your account. They also usually have a maximum amount that you can take out
of your account each day – often £250.
MINIMUM PAYMENT
There is usually a minimum amount of money that must be paid on a credit card or store card
each month.
MORTGAGE
This is a long-term loan that is taken out to buy a flat or house. If you do not keep up your mortgage
payments, then you could end up losing your home.
MOTOR INSURANCE
There are two types of motor insurance. Third party insurance is the minimum insurance cover
required if you drive a car on public roads. You may prefer to take out a comprehensive policy for
your car. You must have motor insurance if you own your own car.
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FINANCIAL LITERACY GLOSSARY
Nn
NATIONAL INSURANCE
National Insurance is a type of tax that pays towards hospitals, police, old age pensions and many
other types of benefits. If you work for an employer, your income tax and National Insurance are
collected automatically and taken out of your wages before you receive them. This process is called
Pay As You Earn (PAYE).
NET
Indicates a sum of money from which certain amounts have already been taken away.
NET INCOME
Your net income is the total you earn in a week, month or year after tax and National Insurance have
been taken out.
NET INTEREST
This is interest which has already had tax taken from it.
NET PAY
The money that you actually receive after you have paid your tax and National Insurance.
NOTICE
The time you must wait before getting your money after telling, say, your bank or building society
that you want to take it out. If you don’t wait, you may lose interest on your money.
FINANCIAL LITERACY GLOSSARY
19
Oo
OCCUPATION
Your job, work or profession, for example, bricklayer, checkout operator, teacher.
OVERDRAFT
If you spend more money than you have in your current account you will become overdrawn. You can
ask the bank to lend you some money for a short time. This is known as an arranged overdraft and
you pay an agreed rate of interest on it. If you become overdrawn without asking the bank in
advance, they might refuse to pay your cheques and charge you a high interest rate on the money
that you owe them.
OVERDRAWN
Your account is overdrawn when you have spent more money than is in it.
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FINANCIAL LITERACY GLOSSARY
Pp
P45
This is the document that your employer has to give the tax office so that the right amount of tax can be
deducted from your earnings. All employers are required by law to give you a P45 when you leave a job.
P60
A form showing your tax details for the year. This is given to you by your employer at the end of
every tax year.
PAY AS YOU EARN (PAYE)
The system that automatically takes income tax and National Insurance out of your wages before you
receive them. It is often called PAYE for short.
PAY IN
Putting money into your bank or building society account. This could be cash or cheques.
PAYEE
The person or institution the money is being paid to when you write a cheque.
PAYING-IN SLIP
A paying-in slip is a form that needs to be completed when you pay money into your account. You
can use it to pay in cash, cheques, or both at the same time. Your bank or building society gives you
a book of paying-in slips when you open the account, and there are usually some at the back of your
chequebook as well.
PAYMENTS
Money you pay out, for example, on materials you need for your business, interest on loans, or
money for services such as gas and electricity.
PAYSLIP
This is given to you by your employer every time you are paid. It shows your income and any tax that
has been taken off. If you pay money into your employer’s pension scheme this will also be shown.
PENSION
This is a type of investment that you pay into during your working life so that when you retire you
have a regular amount of money coming in.
PENSION CREDIT
If you are aged 60 or over you may be entitled to Pension Credit; this could give you extra money
every week.
PENSION DEDUCTION
Payments into a pension scheme will be taken automatically from your pay, if you pay into a
pension scheme which is arranged by your employer. This will show up on your pay slip as
‘pension deductions’.
PER ANNUM
Each year.
FINANCIAL LITERACY GLOSSARY
21
PERSONAL LOAN
A sum of money that you borrow from a company and agree to pay back over a certain number
of years.
PERSONAL PENSION
A pension plan that you have set up yourself through a company, i.e. not your employer’s pension.
PIN
PIN stands for Personal Identification Number – a four-digit number for you to memorise and keep
secret, which you use with a cash machine card. The PIN is for security; it identifies you and stops
anyone else using your account. Never keep your PIN with your card (it’s best not to keep it written
down at all), and never tell it to anyone else – not even bank staff. Often shops and restaurants
use ‘chip and PIN’ where instead of signing a paper receipt to verify a card payment, you enter your
PIN – just like you do at a cash machine.
POLICY
Policy is another word for plan or cover. When you take out an insurance policy, you receive a letter
from the insurance company telling you the kind of events you’re covering yourself for, and how
much money the company is prepared to pay out.
PREMIUM
This refers to insurance and is the amount of money that you have to pay to have the insurance. You
may pay the annual premium in a lump sum, or part of it each month.
22
FINANCIAL LITERACY GLOSSARY
Qq
QUARTERLY STATEMENTS
Statements are written records of how much money you have in your account and all transactions
in the period it covers. The bank sends them to you automatically. A quarterly statement comes every
three months.
QUOTATION
A written statement of exactly how much money something will cost, for example, life insurance.
FINANCIAL LITERACY GLOSSARY
23
Rr
RECEIPTS
Money coming in, for example, from selling goods and services or taking out a loan. If you buy
something you will usually be given a receipt for it, i.e. a typed or written statement
to prove you have bought it.
REPAYMENTS
The sums of money you pay back weekly or monthly on your loan or credit card.
RETURN
The amount you get back when you make an investment. A general rule is that the higher the return,
the more risky the investment.
RIGHTS
The protection that is given to you by law. For example, you have a right to get some of your money
back if your bank goes bust.
RISK
Another name for chance or uncertainty. If you make an investment, usually you will not be
guaranteed to get a certain amount of money back and you could lose some or even all of your
money! However, you could end up getting much more money back than you invested.
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FINANCIAL LITERACY GLOSSARY
Ss
SAVINGS
Saving money means putting the money aside, without risk, to spend at a later date. Money can be
saved in lots of ways, including putting it into a bank or building society account.
SAVINGS ACCOUNTS
Savings are often kept in a bank, building society or National Savings accounts. The amount you put
in does not fall in value but may grow as interest is added.
SECURED LOAN
A secured loan means that the loan amount is being borrowed against the cost of something you
own. This way the lender can be sure that if you can’t make the repayments they’ll get their money
back. For example, some homeowners borrow money against their house. This means that if they
can’t make the payments they may lose their home.
SHARES
This is an investment that makes you a part-owner of a company, along with all the other
shareholders. Some shares pay you a regular income (called a ‘dividend’). With all shares there is a
risk involved – you could end up making money, but you could also end up losing all or part of your
money.
SOLO, ELECTRON
Types of debit card where your account is always checked to see whether there is enough money to
pay for the goods. With these types of cards you cannot take any more money out of your account
than you have in it.
SORT CODE
Six numbers that identify the bank branch that you use. The numbers are usually shown on your
chequebook and cards.
STAKEHOLDER
A type of private pension scheme designed to be good value for money.
STANDING ORDER
A standing order is a method of paying a regular amount automatically. You instruct your bank to pay
money from your account to a certain person or company. It is your responsibility to change the
payment amount if it needs to alter.
STATE PENSION
A pension paid to you by the state when you retire.
STATEMENT
A document from the bank or building society that shows all your recent payments into and
withdrawals from your account. You should check it against your own records.
STATUTORY SICK PAY (SSP)
If you are an employee and unable to work because you are ill, you may be entitled to Statutory Sick
Pay (SSP). Some employers have their own sick pay schemes instead.
FINANCIAL LITERACY GLOSSARY
25
STOCK MARKET
Where shares are bought and sold.
STORE CARDS
Store cards are like credit cards, but are available from shops rather than banks. They can only be
used to buy things at particular shops. Anything you spend on your store card is borrowed money.
If you do not pay off the full amount each month you will start paying interest on it.
SWITCH, VISA DEBIT
Types of debit card. Your account may be checked if you are paying out a large amount but not
always. This means that it is possible for you to be overdrawn on your account.
26
FINANCIAL LITERACY GLOSSARY
Tt
TAKE-HOME PAY
See NET PAY.
TAX
See COUNCIL TAX, INCOME TAX and VAT.
TAX CODE
Employers deduct tax from their employees’ income, and a tax code is a special code that tells
them how much they need to take from your pay. Your employer gets given a tax code for you from
‘HM Revenue and Customs’.
TAX THIS PERIOD
Shown on a pay slip – how much income tax you have to pay this pay period.
TAX YEAR
A 12-month period running from 6th April one year to 5th April the next year. Taxes, such as income
tax, are worked out over this period.
TELEPHONE BANKING
A service whereby you can access your bank account using the telephone, to find out how much
money you have in your account.
TENANT
Someone who rents where they live.
TERM
The time for which something lasts, for example, how long you have to pay back a loan.
TOTAL DEDUCTIONS
On a payslip, this is the total amount that will be taken from your gross pay. What is left after this is
your take-home, or net, pay.
TRANSACTION
Any payment in or out of your account.
FINANCIAL LITERACY GLOSSARY
27
Uu
UNSECURED LOAN
An unsecured loan is the name for a loan that is not linked to anything that you own. Therefore you
cannot lose your home directly if you don’t make the payments – but you can be taken to court and
end up having to pay back the money. Your credit rating may also be affected if this happens – this
means that most financial companies will refuse to lend you money.
UTILITY BILLS
The bills for electricity, water, gas and telephone.
28
FINANCIAL LITERACY GLOSSARY
Vv
VAT (VALUE-ADDED TAX)
A tax that you sometimes have to pay when you buy goods or services.
VOLUNTARY EXCESS
You can get a reduction in the amount that you pay for your insurance if you agree to pay the first
part of every insurance claim yourself. The insurer will then pay for anything more than this.
FINANCIAL LITERACY GLOSSARY
29
Ww
WITHDRAW
Take cash out of your account.
WORKING FAMILIES TAX CREDIT
The Working Families Tax Credit is a new way for working parents to claim financial support from the
government. The amount of help you can get depends on your income, how many children you have
and whether you have to pay for childcare. You can find out more about the Working Families Tax
Credit from your local Benefits Agency Office, New Deal Adviser, Jobcentre Plus or Tax Enquiry Office.
30
FINANCIAL LITERACY GLOSSARY
Xx
Yy
Zz
FINANCIAL LITERACY GLOSSARY
31
For further information contact:
The Basic Skills Agency
Commonwealth House
1–19 New Oxford Street, London WC1A 1NU
Tel: 020 7405 4017 Fax: 020 7440 6626
E-mail: [email protected]
www.basic-skills.co.uk
For further copies please contact:
The Basic Skills Agency
PO Box 5050
Sherwood Park, Annesley
Nottingham NG15 0DL
Tel: 0870 600 2400 Fax: 0870 600 2401
A2119