Aa
A-Level
Advanced Level qualifications are available for 16-18-year-olds in various subjects, consisting of six units with assessments and a coursework element. Sometimes referred to as an A2. They are a necessary requirement of university entrance.
A-Level - vocational
Advanced Level Vocational qualifications for 16-18-year-olds are designed to prepare pupils for jobs such as engineering and business.
Academies
Schools that have converted from formally local authority schools to become directly accountable to the Sectretary of State for Education. They may receive some additional financial support from charities or corporate sponsors. Academies also include Free Schools, University Technical Colleges and others. In return for more freedoms, schools may be required to insist in school inprovement activities in other local schools.
Accidental damage
In addition to buildings and contents insurance most companies will insure accidental damage for an additional fee. It covers the damage done to your possessions by accident, for example, you spill a pot of paint over your carpet.
Accommodation
Where you live; including with parents, in a hostel, renting or buying.
Account
Arrangement with a bank or building society to hold your money in an account and allow you to take it when required.
Actuaries
Insurance professionals who analyse risk and its financial impact
AER
Annual Equivalent Rate. Shows what the interest rate would be if the interest on savings were paid and added to savings at the end of each year. Used as a way of comparing different financial products; the higher the AER, the better the return on your savings.
AFL
Assessment for Learning - teachers planning tasks, the outcomes of which provide information that can be used to improve the next element of teaching and learning. Activities could include questioning, discussions with students, marking work or tests with detailed feedback to students on how to improve.
After tax
What you are left with after tax has been paid.
All-risks
A contents insurance policy covering possessions even when they are away from your home.
Alternative credit
Credit arrangements outside the mainstream. Usually extremely costly.
Annuity
A special type of investment which can pay out a regular sum over a lifetime. Usually taken out with pensions upon retirement.
APR
Annual Percentage Rate. The total cost of a loan, taking into account the interest you pay, any other charges and when the payments fall due. Used as a way of comparing different financial product; the higher the APR, the dearer the loan.
Arrears
Money owed which was not paid when due.
AS-level
Advanced Subsidiary Level qualification are national exams taken in first year of an A-level course, equivalent to half an A-level.
Assets
Everything that a person owns that has a monetary value (e.g. property, investments, cash).
AT
Attainment targets set out expected standards of pupils? performance at end of each key stage. Not all National Curriculum subject have attainment targets
ATM
Automated Teller Machine; also known as ‘cash machines’ or 'the hole in the wall'. An electronic machine that dispenses cash and other banking services using a cash withdrawal card and a personal identification number (PIN).
Attainment stataments
The statements that comprise the attainment targets
Attendance allowance
A benefit for people over 65 with physical or mental care needs.
Available credit
This is the amount of money a store card or credit card company will lend you immediately.
Bb
BACS
Bankers Automated Clearing System. A fast service that allows transfers of money to be done electronically from one bank to another e.g. salaries.
Balance
The amount of money you have in your account at any particular time or which you owe on your credit or store card or on a purchase after the deposit has been paid. It will be shown on your statement.
Balance brought forward
The balance that was shown on your last statement.
Balance transfer
Moving the balance from one credit card to another with a lower interest rate, in order to pay less.
Bank
A bank is a government-licensed and regulated financial institution whose main activity is to lend money in order to stimulate economic growth, and, in turn, profit. In order to lend money the bank must take a certain amount of deposits which it does in the form of current and savings accounts opened by individuals and businesses.
Bank account
A service from a bank or building society which lets you pay in money, get cash out and pay bills etc. The bank keeps a record of all transactions.
Bank loan
Money that you borrow from your bank for a pre-arranged interest rate.
Bank of England
The UK’s central bank responsible for setting the base interest rate in order to try and keep the economy stable. This base rate influences the rates offered to savers and borrowers by other financial institutions such as banks.
Bank statement
A piece of paper that shows all the money that has been paid into an account and paid out from an account. Statements are usually sent each month.
Banknote
A piece of paper money, where the bank will pay the amount of money shown on the note.
Bankruptcy
A court order given when someone cannot pay their debts they owe: an official receiver takes control of your money and property, and deals with your creditors.
Base rate
The interest rate set by the Bank of England, which other financial institutions (such as banks) use for guidance when setting their rates.
Baseline assessment
Assessment / tests to find out what learners know or can do before teaching begins of a particular subject / topic. Used to track pupils? progress. Especially used to refer to the assessments undertaken during the EYFS (early years foundation stage), normally aged 3 to 5
Beneficiary
A person named in a life assurance policy.
Benefits
A government system which provides practical help and financial support for members of the public. For example benefits are available for: those who are unemployed and looking for work (job seekers’ allowance), additional income when an individual’s earnings are low (income support), bringing up children (child benefit), retired (state pensions), care for someone, are ill or have a disability.
Bill
A piece of paper that shows how much money is owed for something eg gas, electricity etc.
Bonds
Sometimes called 'fixed interest securities' or simply 'stock' are loans to an organisations such as a company, a local authority or the government. Bonds are a form of investment, usually with less risk than shares.
Bonus
A bonus is a payment made to an employee in addition to a basic salary.
Borrowing
Getting money from someone else that you intend to pay back after some time. You might borrow informally from friends and family or take out a formal loan with a written agreement from a bank or building society.
Bounced cheque
A cheque is said to ‘bounce’ when a bank refuses to pay the named person on a cheque due to either lack of funds in your account or the cheque is written incorrectly.
Bridging loan
A temporary loan which allows you to buy a new property before selling your old property.
Budget
An amount of money set aside for something or it can also be a summary of intended expenditure and income to cover it.
Building society
An organisation that is owned by its members, some or whom will be customers saving or borrowing from the society. They often offer a range of financial services and are similar to banks.
Buildings insurance
Type of insurance that pays out if the structure of your home is damaged. For example your house is damaged by fire.
Bursary
An ammount of money given to a student by a college or university, to pay for them to study.
Buy-to-let
When a person buys a property with the intention of renting it out to someone else. The rent is often used to pay off a mortgage.
Cc
CAB
Citizens Advice Bureau; a local voluntary organisation offering unbiased free advice on a range of problems including finances, legal matters etc.
Capital
The amount of money you originally have, save or invest, before any interest, other return or loss is taken into account. It could also be an amount of money that you have borrowed.
Capital Gains Tax
The tax paid on profits from selling investments such as shares if their value is over a certain amount
Carer's Allowance
A benefit for people who provide regular care to disabled people in their own home.
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 gas and electricity in cash by using the Giro payment system available through post offices and banks.
Cash inflow
The receipts of your business. If your receipts are bigger than your payments, you have a net cash inflow.
Cash outflow
Payments out of your business. If your receipts are less than your payments, you have a net cash outflow.
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.
Cashflow
A record of all the money coming in, less all the payments as they are made, measured over a particular time.
Catalogue
Goods are shown in the pages of the catalogue. You can buy them on credit and pay in weekly or monthly instalments. The goods will usually be delivered by post. The price of the goods in the catalogue may be more than the price in a shop.
CCJ
County Court Judgement. An order made by a judge to settle a claim brought in the county court.
CHAPS
Clearing House Automated Payment System – a method for transferring money from one bank account to another on the same day. There is usually a charge for this service
Charges
Fees and interest which you have to pay, for example, when you borrow money or buy on credit.
Cheque
Cheques are a paper based payment method often used for buying goods, paying bills and as gifts. However the use of cheques has declined over past 20 years and fewer retailers accept cheques, as other payment methods are more efficient and effective.
Cheque guarantee card
A plastic card issued by a bank or building society that guarantees 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
A tax-free benefit paid to most people with children.
CiC (Children in care)
Children under 18 years of age who have been provided with care by children's services, often with foster parents.
Circle time
Usually used with primary school children; where children may sit in a circle to discuss social and emotional topics such as bullying or money. Supports the development of children?s listening skills. Used by teachers throughout the age range for personal, social, health and economic education.
Clearing
Clearing is the time it takes for the bank to complete a transaction, for example, transfer money from one account to another.
Collateral
Things you own of value that can be used to secure a loan; for example a property.
Compound interest
The usual type of interest paid on savings and loans, based on the capital plus the interest already paid so far, so the savings or the loan will grow by increasing amounts (unless money is taken out or the loan paid off).
Comprehensive insurance
A comprehensive insurance policy is more expensive than a third party insuance only policy because it provides cover for accidental damage to your own car in addition to the third party cover.
Comprehensive school
Secondary schools which educates all local children regardless of their ability. A schools intake can vary dependent on popularity and location.
Consolidation loan
A loan which combines all your credit card payments, housing arrears, loan repayments and household bills into one monthly payment.
Consumer
When you buy something you are a consumer.
Consumer society
A society in which people place a high value on possessions and in which they are encouraged to purchase more
Contents insurance
You buy contents insurance to cover your possessions. Some policies will pay for damaged items to be replaced as new – although the insurer may send you a voucher for a set value for you to replace the item at a certain store rather than give money. The amount you pay will depend on where you live, how big your house is and whether you have a lot of valuables.
Core subjects
English, mathematics and science.
Corporation tax
The tax paid by business owners on their profits.
Council tax
Tax paid to the local council for local services such as libraries, police, waste collection etc.
Council tax benefit
Helps those on low incomes pay their Council Tax
CPD
Continuing professional development - involves activities that develops teachers? knowledge / understanding, and their effectiveness in their professional lives.
Credit
An account ‘in credit’ means that there is 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 as a loan to make the purchase.
Credit cards
A small plastic card 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.
Credit history / record
A record of loans you have taken out or credit card payments made or missed. This information is stored by credit reference agencies, which supply details of your credit score/rating to financial institutions when you take out further loans.
Credit limit
The maximum amount the store card or credit company will lend you altogether at any time.
Credit rating
An estimate of how risky it would be to lend a person or an organisation money based on their credit history / record.
Credit reference agency
An agency that holds information on adults. This information includes public records (e.g. Electoral Roll entries), credit account information (e.g. repayment records for loans, credit, mortgage, hire purchase) and records of credit checks that have previously been made.
Credit repair companies
Companies offering, for a charge, to advise you how to erase bad credit from your credit record.
Credit risk
The chance that you might not repay your loan or credit.
Credit score
A score given by a shop or credit agency based on your personal and financial circumstances. It helps them to decide whether you are likely to repay the loan you are asking for.
Credit Union
A non-profit making co-operative savings association that lends money to its members at low interest and encourages saving.
Creditor
A creditor is someone to whom a debt is due. This word is often used to describe the person that lends you money.
CSA
Child Support Agency; responsible for ensuring that parents who live apart meet their financial responsibilities for their children.
CTC
Child Tax Credit; a means-tested benefit for people with children. Introduced to combat child poverty.
Currency
Money in any form which is used as a way of buying goods and services e.g. Euro, Pound, Dollars. Different countries use different currencies.
Current account
A low-interest bank or building society account which helps you to manage your day-to-day money; pay bills, receive money and keep money secure.
Customs duty
Customs Duty is a tax paid when you bring certain goods into the country.
Dd
Debit
Money which is taken out of an account is ‘debited from’ that account.
Debit cards
A small plastic card used to buy things without using cash or a cheque; when paying in shops, shopping by phone or on the internet. 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.
Debt
If you are in debt you owe money to someone or an organisation.
Debtor
A person who owes money.
Default
To default on a loan means to fail to make payments that are due.
Dependents
Dependents are people who depend on you financially because they have no income. This is usually children who live with you, but it could be elderly relatives you care for.
Deposit
Money that you pay into an account or a deposit is an initial payment which secures the purchase of something, normally a percentage of the total amount.
Differentiation
The way in which the currculum and teaching methods are ammended to meet the learning needs of individual students.
Diploma
A qualification for 14 to 19 year-olds, offering a practical way of gaining skills for employment and university. Subject areas are available including; business administration and finance.
Direct debit
An instruction to your bank to release money from your account to pay bills and other amounts automatically. The billing company requests the money from the bank directly. You are told in advance in writing how much will be taken and the date it will be taken out of your account.
Disability living allowance
A tax-free benefit for people under 65 who have personal care needs or mobility problems.
Discount
Money which is taken off the price of something. You may need to collect coupons or vouchers before claiming the discount. Sometimes shops give a discount to their employees.
Dividend
Money from a company’s profits paid to people who have shares in the company. Most shares pay an interim and final dividend.
Ee
E-money
Money transfers made electronically or over the internet; for example direct debits.
Early Years Foundation Stage (EYFS)
The time before statutory school age and including the year children start school, usually age 3 to 5. The curriculum is less formal and relies heavily on play. There is a framework of learning for teachers to follow and learning about money is part of that framework.
Economic wellbeing
A person’s sense of financial security, including avoiding poverty, achieving employment and understanding personal finance
Economy
The UKs economy refers to its production and sale of goods and services and the way the government manages its money.
Employee
Someone who is paid to work for an organisation, company or someone else. The person who you work for is your employer.
Employee NIC
Employee National Insurance Contributions; is a form of additional taxation that is taken off your pay before you get it. You usually need to make contributions before you can claim certain state benefits, such as State Pension when you retire.
Employer
Someone who pays someone else to work for them
Endowment
A life insurance policy that pays out a lump sum at the end of a set period or on death, whichever comes first.
Enterprise
Running a business or, in education, learning how to do so
Entrepreneur
An entrepreneur is soemone who starts their own business and makes money through risk and initiative.
Equity
The value of a property over the amount of the mortgage secured against it; if property prices go up, your equity increases. Negative equity is where the value of your property is less than the amount of the mortgage still to be paid off.
Equity withdrawal
The process where mortgage levels are increased to release extra funds
Estimate
An estimate is an educated guess. An electricity or gas company will work out an estimate on the basis of how much electricity or gas you have used at this time of year in the past. On some bills in the ‘meter readings present’ column, it may have an ‘E’ before the number wihch means the figure is an estimate.
Ethical bank
A bank that uses its investments and loans to support projects that benefit society or the environment.
Ethical consumer
Someone who thinks before they buy a product or service about how it has been produced and the costs to the environment or other people (e.g. fair trade). By buying something we effectively ‘vote’ to have more of it, made in the same way. By boycotting such goods we send a signal that we do not approve of how the product has been made, packaged or distributed.
Euro
The Euro is the currency of several European countries.
Exam groups/boards
The companies responsible for preparing and marking exam papers for GCSE, A Levels and other externally moderated qualifications.
Excess
Some insurance policies require you to pay an agreed amount of the cost of any damage if you make a claim. The insurer will then pay for anything more than this. Agreeing to a higher excess generally reduces premiums.
Exchange rate
The exchange rate tells you how much you get when exchanging one currency for another (e.g. one British pound might be worth 1.5 US Dollars).
Exclusion
These describe a possible event or circumstance not covered by an insurance policy. Almost all insurance policies have exclusions.
Expenditure
The amount of money you spend on goods or services.
Expenses
The sums of money that you need to have to spend so that you can live.
Expiry date
Appears on plastic cards - after this date your card cannot be used.
Extended school
Schools offering services out of normal school hours to support the needs of local families and their communities; such as breakfast clubs or after school clubs.
Ff
Fair-trade
The fair-trade movement aims to make sure that workers and producers get paid fairly.
Fee
A sum of money you pay, for example, to have a loan or credit arranged for you.
Final salary pension
A pension where the amount you get is worked out on the basis of how much you earn in the last (or last few) years of service and your length of service.
Finance company
A company which makes money by lending to people who want to buy goods on credit. Most shops use finance companies for their credit deals.
Financial adviser
A financial adviser is a person or company who can assess your financial needs and give advice about money and suitable financial products. Some advisers can also manage investments for you. An independent financial adviser (IFA) is one not working for specific bank or other seller of financial products, and can in theory therefore offer a wider range of options.
Financial capability
A term used to describe a person’s general awareness of issues relating to money, including keeping track of finances and choosing financial products and services.
Financial capability
having the knowledge, skills and attidudes in relation to money necessary to thrive in society
Financial education
Teaching and learning leading to financial capability. Lessons planned separately or as part of another subject to help learners understand money
Financial exclusion
Lack of access to mainstream banking and other financial services
Financial records
Documents that show information about money earned, spent or owed, including statements, bills, receipts etc.
Financial risk
Some financial products, such as shares in new businesses, are risky because their value can vary (rise or fall) over time.
Financial situation
Your financial situation refers to how much money you receive in wages and/or benefits and how much money you have saved up. It also includes how much money you owe and any financial arrangements you have made for the future, such as a pension. Sometimes people will also ask you about your regular outgoings, such as the amount you pay in rent.
Financial year
The 12-month period a business uses for recording its accounts. It is often the same as the calendar year or the tax year, but does not have to be.
Fixed costs
Costs that remain the same no matter how much is used.
Fixed interest rate
An interest rate guaranteed to stay the same for an agreed period, regardless of whether bank rates go up or down.
Franchise
The right to sell the products or services of an existing business , independently of that business, in a particular location.
Fraud
A crime where people have tricked or lied to other people, or to an organisation, in order to get money.
Free buffer zone
Some bank or building society accounts have a free buffer zone; a temporary overdraft for which you will not be charged for being slightly overdrawn.
Free schools
Schools that have been set by parents and others in a local community where it is believed there is not already a school which meets their needs. Each school becomes and independent state school, ratified directly by the Secretary of state for education
FSA
Financial Services Authority. The UK’s financial watchdog which regulates how financial institutions are allowed to conduct their business.
FSM
Free school meals provided to students of parents/carers who receive particular government benefits.
Functional subjects/functional skills
Qualifications aimed to improve the level of competence of pupils in the literacy, numeracy and ICT needed for life skills. Functional skills are available as stand-alone qualifications and are now integral to GCSE English, mathematics and ICT and Diplomas. Functional Skills assessments consist of the application of skills within real life contexts, eg; learning mathematics skills through money.
Gg
Gambling
Betting money in the hope of making more money; for example through the lottery, fruit machines or casino games.
GCSE
General Certificate of Secondary Education - national academic examinations of basic secondary education usually taken by 16-year-olds.
Gifted and talented
The identified top 5 - 10% of pupils in each year group that have a high ability in one or more academic subject. Those with a high ability in sport, music, visual arts and/or performing arts are deemed talented.
Gilts
Gilts are issued by the government to help fund its spending. It is a fairly secure way to invest your money. Also known as government bond.
Giro
A giro is a banking term for a method of payment. A giro is given by the payer to his or her bank, which transfers funds into the payee's bank account.
Graduate earnings premium
The extra earnings that come with having a university degree
Gross
An total amount of money before any deductions, such as tax or National Insurance.
Gross income/pay
Your wages before anything is taken away from it such as income tax and National Insurance Contributions.
Gross interest
Interest on savings before any tax is taken off.
Gross profit
In a business - the money you make from selling your goods and services less the cost of materials or making the goods.
Hh
Head of Year or Head of House (HOY or HOH)
In secondary schools they have the main responsibility to monitor, guide and support pupils? academic and social development across a year group or house and to lead a team of form tutors.
Health insurance
There are many types of health insurances; some give you a lump sum if you become ill, others pay you a regular income while you can’t work, some pay for your treatment at a private hospital so that you do not have to wait a long time for treatment.
Her Majesty?s Inspectors of Schools (HMI)
Most inspections are carried out by the inspection staff of OFSTED. HMI oversee this, conduct specific themed inspections and publish an annual report on the quality of education in England.
Hire purchase (HP)
A way of paying for goods over time if you don’t have all the money up front (often used for cars): an initial deposit is usually paid, followed by a series of regular payments to cover the balance and any interest over a fixed amount of time, the same as repaying a loan. You would not own the car until you have completed the hire purchase agreement.
HMRC
Her Majesty's Revenue and Customs - the government department responsible for tax collection and benefit payments.
HOD or HOF
Head of Department or Head of faculty. In secondary schools they have the main responsibilty to raise the standards of pupil attainment and achievement within their curriculum area, to monitor and support pupil progress and lead, manage and develop their curriculum area.
Honour a cheque
A bank honours a cheque by paying out the money as you have requested. A cheque will only be honoured when it has been guaranteed or there is enough money in the account, or you have an agreed overdraft.
Housing benefit
A benefit for people on low incomes to help them pay their rent
Ii
Identity theft
Identity theft is a crime of fraud where somebody elses personal details are used to open bank accounts, get credit cards, take out loans, claim benefits etc.
IFA
Independent Financial Adviser. An adviser offering advice on investment products from all companies in the marketplace, instead of being limited to selling those of just one firm.
Incapacity benefit
A benefit for people who cannot work and do not get Statutory Sick Pay.
Income
Income is the total money you have coming in, such as; wages, benefits (like income support or child benefit) and child maintenance payments and investments.
Income support
Income Support is a government benefit paid to people on very low incomes tp support them with living costs.
Income tax
A tax which is payable on almost all types of income, at various rates depending on the level of income.
Independent learning
Learning that supports students to think for themselves; when a student gains knowledge by their own effort and develops the ability for enquiry and critical evaluation.
Index-linked
Index-linked means that the value of the financial product or service (e.g. pension, savings certificate) is increased in line with the Retail Price Index or inflation.
Inflation
A continual increase in the general level of prices. This means over time a given amount of money will buy fewer goods and services.
Informal economy
Paid employment that is hidden or not declared for tax purposes, also known as the hidden economy or cash in hand work.
Information and Communication Technology (ICT)
A subject that is part of the National Curriculum which deals with teaching about technology.
Inheritance
The passing on of money or assets when someone dies. It can also include gifts given while the person is still alive.
Inheritance tax
Tax on the value of a deceased person's assets. Tax may also be imposed on any gifts made during the seven years before death.
Inland revenue
The Inland Revenue is the organisation which collects UK taxes.
INSET
In-service education and training - training for teachers to support with the development of their skills in teaching and learning. Also referred to as CPD
Insolvency
When someone is unable to pay their debts.
Instalments
Weekly or monthly repayments made to pay off a loan or goods bought on credit.
Instant access account
A savings account where you can get your money back without needing to give any notice; they generally attract lower rates of interest than accounts where notice is required.
Insurance
Insurance involves regular payments to a company so that you can claim money to cover the cost of a possible event such as an accident.
Insurance cover
Insurance cover describes the situations you are insured against. For example, if you have a car you might have comprehensive cover or only be covered for third party, fire and theft.
Insurance premiums
The money you pay to the insurance company to make sure you are covered. Premiums are paid monthly, quarterly or annually.
Interest
The reward you get for lending your money to say, a bank or a building society. Also the cost you pay when you borrow money through a loan or credit agreement. It is usually worked out as a percentage (the interest rate) of the money you have borrowed. For instance, if an interest rate is 10 per cent and you borrowed £100, the interest you have to pay will be 10 per cent of £100, or £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%.
Interest-only mortgage
A mortgage where only the interest due is paid off regularly. The original sum is paid off in full at the end of the term of the loan.
Intestate
Dying without a valid will, in which case the law decides how assets will be distributed.
Invest
To use money to buy something that may increase in value over time, for example jewellery, property or shares in a company.
Investment
Products that sometimes involve some risk of losing your original money but give you the opportunity of better returns than you get from savings.
IPT
Insurance Premium Tax; a tax placed on some insurance premiums.
ISA
Individual Savings Account; an account where you don’t pay tax on interest earned. There is a set limit of how much you can save in an ISA each tax year.
IT
Information Technology - a computing, telecommunications and broadcasting subject that is part of the National Curriculum.
ITE
Initial Teacher Education. Courses the students in ITT (Initial Teacher Training) take. This can take place in a variety of settings, including Universities and Training Schools.
ITT
Initial Teacher Training. Training undertaken at universities or Teaching Schools to gain qualified teacher status (QTS). This enables them to teach in schools.
Ll
LEA
Local Education Authority - see LA or local authority.
Learning Money Matters (LMM)
A pfeg project which ran in secondary schools from 2006-11
Liability
An amount of money owed at a particular point in time
Life insurance
A type of insurance that pays out a lump sum to your family if you die. Some mortgage lenders oblige borrowers to have this kind of cover; the insurer will pay off the mortgage with a lump sum if you die. You can insure for more than the cost of the mortgage to make sure that your family has some additional funds to live off.
Lifetime annuity
A regular income for the rest of your life.
Limited company
A registered business, run by private individuals, entitled to employ other people. It can sell shares to private individuals to raise capital and the amount of these, limits any financial liability it has.
Liquid assets
Possessions that can easily or quickly be converted into cash.
Loan
A sum of money which you borrow from a person or organisation, usually with interest.
Loan shark
Someone who lends money wthout having a licence to do so from the Office of Fair Trading (OFT). They charge extremely high rates of interest and often use threats to get money if payments are missed.
Local authority (LA)
The statutory body responsible for many aspects of state funded education within a locality (sometimes refered to as local education authority). Academies and Free Schools have significant freedoms from Las
Looked After Children (LAC)
Children under 18 years of age who have been provided with care by children's services, often with foster parents.
Loyalty cards
Cards offered by some shops to encourage people to shop there. Every time you spend money at that shop you will be given 'points' on your card, which can be saved and later used to obtain discounts on shopping or other benefits such as air-miles.
Lump sum
A lump sum is a one-off payment. Some people have insurance policies that pay a lump sum if they have an accident or are ill. Other people prefer to have a policy that provides an income over a long period of time.
Mm
Maximum withdrawal
Most cash machines check your bank account and will not give you any more than there is in your account. There is also often a withdrawal limit of about, £250 per day.
Means test
An assessment of somebody’s income and savings, carried out in order to determine whether they should receive a benefit or financial aid.
Minimum payment
The minimum amount you must pay each month off your debt on credit or store card payments.
Mis-selling
High pressure or misleading sales techniques which encourage people to buy financial products which may not be suitable for them.
Moderate Learning Difficulties (MLD)
Students with MLD receive additional support under special education needs (SEN) provision.
Modern Foreign Language (MFL)
A subject which forms part of the National Curriculum at Key Stages 3 and 4 in England.
Money purchase pension
A form of pension where your final pension depends on stock market performance. All personal pension plans operate in this way.
Mortgage
A type of secured loan usually taken out to buy property. If you do not keep up the mortgage repayments the mortgage company can repossess your house.
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. A comprehensive car policy covers your car and others for any accidental damage.
My Money
A pfeg project working in primary and secondary aged children, funded by the government, which ran from 2008-11
My Money Week
pfeg's national, themed activity week which brings money management to life in primary and secondary schools in England in the summer term
Nn
National Curriculum (NC )
The National Curricuoum comprises core subjects (English, mathematics, science) and foundation subjects (history, geography, pysical education, art and design, design and technology, music, modern foreign languages (for KS3 only) information cumunication technology, citizenship (KS3 only). The curriclum outlines what pupils should be taught from year 1 to the onset of GCSE courses, with regular assessments to monitor progress. It is a national entitlement.
National insurance
A government deduction from your wages used to pay for benefits that you might need to claim; like incapacity benefit, and your state pension when you retire. A plastic card with your NI code is sent to all just before a 16th birthday. Employers and employees both pay contributions.
Negative equity
Having a mortgage which is larger than the value of your home.
Net
Indicates a sum of money from which certain deductions have already been taken away eg tax.
Net income/pay
Your net income / pay is the total you earn in a week, month or year minus any deductions for tax and National Insurance.
Net interest
This is interest which has already had the tax taken off it.
Net profit
In a business - the gross profit less the overheads of the business measured over a particular time.
Net worth
The overall value of all assets minus all liabilities
Newly Qualified Teacher (NQT)
Teachers in England who have been qualified (QTS) for less than a year and undertake a statutory programme to ensure they are effective teachers.
Non-priority debts
Less important debts. The people you owe the money to can take you to court to recover the debts but cannot take any other action (such as cutting off a service or repossessing your home). They are likely to accept reasonable repayments.
Notice
The time you must wait to get your money after telling your bank or building society that you want to take it out. If you don't wait this time you may be penalised by, for example, losing interest.
NVQ
National Vocational Qualification. Work-based awards that are achieved through assessment and training. Candidates must show competences to carry out a role to a required standard. Eg; an office administrator may take an NVQ in Business and Administration. There are five levels of NVQ; From 1 to 5 which assess basic work through to senior management activities.
Oo
Occupation
Your job, work or profession e.g. bricklayer, checkout operator, teacher.
Occupational pension
A pension from a scheme set up by an employer, for example, a Teacher's Pension. Employees have to join the scheme to be eligible and may have to make contributions towards it. The scheme may pay a fraction of the final salary as a pension (calculated using the number of years worked) or build up a cash fund used to buy an annuity. An annuity is a special type of investment which can pay out a regular sum over the lifetime of the owner.
Offset mortgage
Is a type of mortgage where all the money from a persons bank accounts is set against the balance/loan owed, hence reducing payments.
OFQUAL
The Office of Qualifications and Examinations Regulations. The Government's regulator of qualifications.
OFSTED
The Office For Standards in Education inspect and regulate services which care for and provide education for children of all ages. In schools Inspection focus on areas including: outcomes for learners; quality of teaching, learning and assessment; quality of leadership and management.
Overdraft
If you spend more money than you have in your current account you will go overdrawn. You can ask the bank to lend you some money for a short time at an agreed rate of interest , known as an arranged overdraft. If you go overdrawn without asking the bank in advance, they might refuse to pay your debits and charge you a high interest rate on the money that you owe them.
Overheads
The costs of running a business, such as rent, office help, utility bills, advertising and distributing your goods and services.
Pp
P Scales
Are levels for recording SEN pupils achievement when they are working towards National Curriculum level 1 in all subjects.
P45
This is a document that an employer has to provide when you leave a job so that the right amount of tax can be deducted from your earnings.
P60
This is a summary of your pay and the tax that's been deducted in the tax year. Your employer should give you a P60 to keep as a record at the end of every tax year.
Paid employment
Work that receives a financial payment.
Pay period
The year is divided into equal pay periods starting from early April (which is also start of the tax year). If you are paid monthly, there are 12 pay periods; if weekly, 52.
PAYE
Pay As You Earn; when tax is collected from an employer before the individual is paid their salary/wages.
Payee
The person the money is being paid to when you write out a cheque.
Paying-in slip
A paying-in slip is a bank form that needs to be completed when you pay cash or cheques into your account. Your bank or building society may give you a paying-in slip book, or some forms at the back of a chequebook or individual forms can be accessed at the bank.
Payments
Money you pay out, for example, on materials you need for your business, interest on loans, money for services such as gas and electricity.
Pedagogy
The 'how' of teaching. Teaching is a skilled job, but different teachers have different styles of teaching. Effective teaching involves being able to match the style of teaching to the needs of the learner.
Pension
An income paid out after someone retires. The government gives tax relief on money paid into a scheme designed to provide a pension. A pension is a ‘locked box’ form of savings because you cannot spend any money in the fund until you have reached a minimum age (often 50). You can often take part of the proceeds as a cash lump sum but the rest must be taken as income. There are different types of pension schemes; occupational, stakeholder, state and personal.
Pension credit
A regular income provided by the Government as an additional benefit to support pensioners.
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 payslip as 'pension deductions'.
Performance tables
Published annual results of pupils' performance in national tests for schools and colleges.
Peril
In insurance, an event that causes financial loss
Personal finance
An individual’s financial affairs, including decisions about choosing products and services, savings and investments, spending and borrowing money.
Personal loan
Loans that you can use to pay for whatever you want (subject to certain restrictions).
Personal pension
A pension plan, not tied to a particular employment, that you can keep going even if you change job. You might have set up the plan yourself direct with a pension provider or it could have been arranged through your workplace. Some personal pensions are Stakeholder schemes.
Personalised learning
Attention is paid to every pupils learning styles and needs.
Phone service packages
Most phone companies offer different phone service packages to suit individual customers’ needs, such as different rates for national and international and free evening calls.
Physical and Severe Learning Difficulties (PSLD)
Pupils with PSLD receive additional support under special education needs (SEN) provision in mainstream or special school.
PIN
Personal Identification Number; a four-digit security number used with cash machine, credit cards and debit cards. It is like an electronic signature that stops anyone else using your account.
PLC
Public LimitedCompany; when a company sells its shares on the open market. The shares can be owned by the general public and bought and sold through the Stock Exchange.
Plenary
Part of a lesson, usually at the end, where the teacher reviews learning that has taken place during the leson, often through questioning or looking together at some of the pupils' work.
PMLD
Profound and Multiple Learning Difficulties - pupils usually require total physical care from others and attend a special school.
Policy
Another word for plan or cover. For example when you take out an insurance policy, you receive a contract from the insurance company telling you what you are covered for, and how much money the company is prepared to pay out.
Policy agreement
This sets out everything that is agreed between you and the insurer. It will list everything that is covered as well as what is excluded. Read it carefully before buying the insurance.
POS
Programme of Study - sets out what will be taught in each subject at each key stage in schools.
Premium
The amount you have to pay to buy the insurance.
Principal sum
The original amount of debt taken out
Priority debts
Debts which are more important than others because the law lets the people, you owe the money to, take serious action against you if you do not pay. Priority debts include things like a mortgage because your home could be repossessed if you do not keep up your mortgage repayments.
Probability
A estimate of how likely something is to occur.
Profit and loss
In a business, you make a profit if you sell goods or services for more than your costs. You make a loss if the proceeds are less than your costs.
Progressive taxation
Taxation which increases as your income goes up, such as income tax.
PSHE education
Personal, social, health and economic education (sometimes refered to as PSHEe) - a non-statutory part of the National Curriculum with some compulsory aspects. It is a programme to support pupils to develop fully as individuals, as members of families, social and economic communities. It aims to equip pupils with knowledge, understanding, attitudes and practical skills to live healthily, safely, productively and responsibly.
Public limited company (plc)
A limited company owned by shareholders, who can be members of the public.
Rr
RAISEonline
RAISEonline provides annual analysis of school and pupil performance data; used for school self-assessment and target setting purposes.
Receipts
Money coming in, for example, from selling goods and services or taking out a loan.
Recession
A recession is a fall in a country’s growth (and income) over several consecutive months (3 months in the UK).
Rent
Money paid to the owner of a property where you are living.
Repayment loan
A loan where you pay off a mixture of capital and interest each month.
Repayment mortgage
A repayment mortgage is a property loan, where regular payments pay off both the interest and a proportion of the original loan.
Repayments
The sums of money you pay back weekly or monthly on your loan or credit.
Repossession
When a mortgage lender takes back ownership of a property when a borrower is unable to afford their mortgage repayments.
Retirement
The period in a person’s life when they stop working and start receiving a pension. To receive a state pension you must be at about 65 years old. Those with a private pension may be able to retire earlier if their pension fund is large enough.
Return
Your return is the amount you get back when you invest money. A general rule is that the higher the return the more risky the investment.
Right-to-buy
Entitles a tenant to buy a property.
Rights
The protection that is given to you by law; for example, you have a right to compensation if your bank goes bust and you lose money.
Risk
Another name for chance or uncertainty. Types of risk include capital risk (your savings or investment fall in value), interest rate risk (the interest rate you agree to may not be good value in the future) and inflation risk (price levels will rise so the buying power of your savings or investments will fall). Shares and share-based investments (unit trusts) are considered higher risk because the value of your investment can fall (capital risk) but growth of these investments can outstrip inflation over medium/long-term.
RPI
Retail Price Index is a measure of the changing price of everyday items over time. This measure is taken as evidence of the rate of inflation.
RRP
Recommended Retail Price; the suggested price for goods in shops as set by the manufacturer.
RSL
Registered Social Landlord. A landlord registered with a Housing Corporation and providing social housing on a non-profit basis.
Ss
Salary
An amount of money paid to an employee for a job, usually paid directly into his or her bank account every month.
Savings
Any money you put aside for future use. This may be in a deposit account or under your bed.
Savings accounts
Savings are often kept in bank, building society or National Savings accounts. The amount you put in does not fall in value but may grow as interest is added.
School Development Plan (SDP)
Sets out what a school wishes to achieve within a time limit. Budgets will normally be arranged in line with the SDP
Secured loan
A secured loan means that the loan amount is being borrowed against the cost of something you own, for example, some homeowners borrow money against their houses. This way the lender can be sure that if you can’t make the repayments they’ll get their money back by reposessing the house.
Self-assessment
Self-assessment means completing your own tax return.
Severe Learning Difficulties (SLD)
Pupils with SLD receive additional support under SEN provision, usually attending a special school. Their needs will be highly complex.
Shareholders
People who invest money in a company by buying shares of it, hence owning part of it.
Shares
An investment which makes you part-owner of a company, along with all the other shareholders. Some shares pay you an income (called dividends) regularly. With all shares you accept a capital risk, meaning if the share price rises, you will make a profit when you sell, but if the share price falls, you will make a loss.
Shariah banking
A way of banking following Islamic laws about money, such as profit and loss is to be shared, interest is not given or taken.
Signatory
A signatory is a person who signs a document. For instance, if you are making an application and sign a form, you are the signatory.
Small print
A product's terms and conditions typically written in small letters and should be read carefully.
SMART targets
Specific, Measurable, Achievable, Realistic and Time-related targets.
SMSC
Successive education acts state the school must make provision to ensure that there is Spiritual, Moral, Social and Cultural development of pupils and society.
Sole trader
An individual who runs their own business without any employees and without limited company status.
Sort code
A six-digit number (found on cheques, credit cards etc) that identifies the branch of a bank or building society .
Special Educational Needs (SEN)
Provision to support pupils with learning disabilities either through mainstream or specialised schools.
Stakeholder pension
A type of pension scheme designed to be good value for money by having low charges, flexible payments. Usually it means a personal pension that meets these conditions, but some types of occupational scheme can also be Stakeholder schemes.
Stamp duty land tax
A tax payable by the purchaser of a property; the amount payable is calculated as a percentage of the total purchase price.
Standard of living
The quality of life enjoyed by an individual or household.
Standing order
A method of paying regular amounts from your bank account automatically. You instruct your bank to pay the money to a particular person or company. It's your responsibility to change the payment if it needs to alter.
State pension
A pension paid to you when you retire by the government. The amount you get will depend on your National Insurance record (or that of your partner).
Statement
A document from the bank or building society which shows all your recent payments into and withdrawals from your account. You should check it with your own records.
Statutory sick pay (SSP)
SSP is the minimum amount employers must pay any employees unable to attend work due to illness.
Stock market
Where stocks and 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.
Student loans company (SLC)
Lends money to higher education students to enable them to meet expenses. Owned by the UK government.
Tt
Take home pay
Your actual monthly salary after deductions such as income tax and national insurance contributions (ie net pay).
Tax
A fee charged by a government on a product (VAT), income (income tax), or activity (road tax) to finance government expenditure on public goods and services, such as the police, the NHS, street lighting or street cleaning.
Tax allowance
A tax allowance is the amount of money you can earn before paying income tax.
Tax code
This code tells your employer how much tax-free pay to give you each time you are paid. Your tax code is worked out from your tax allowances and other tax adjustments.
Tax credits
Means-tested allowances. There are working tax credits (WTC) and child tax credits (CTC).
Tax this period
Shown on a payslip - how much income tax you have to pay this pay period. It is worked out from tables using your tax code.
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.
Taxation (local)
You may pay local taxes such as council tax. This money is used to pay for local services such as libraries and the police.
Taxation (national)
You are taxed in a variety of ways; for example, by paying income tax on your wages, by paying VAT when you buy certain goods, by paying the road fund licence for a car. These taxes are used to finance services such as the National Health Service, Armed Forces and education which are of benefit to everyone.
TDA
Training and Development Agency - a Government body with overall responsibility for teacher training and continuing professional development in England. This agency takes a decision each year about the amount of teachers that the country needs and issues places to providers to meet the need.
Teaching Schools
Schools which have been given the remit to train teachers. They have been set up in a similar way to teaching hospitals
Tenant
Someone who rents where they live.
Term
The time for which something lasts e.g. how long you have to pay back a loan.
Term accounts
Savings account that lasts for a set period (such as two years). You may not be able to take your money out early.
Term of the loan
Generally the longer the period you borrow the money on a loan, the lower the interest rate (but this will still add up over the time that you’re paying the money back).
Third party insurance
Third party insurance means that your insurance company will pay out if you accidentally cause damage to another person or their car. Adding in ‘fire and theft’ means that your car is covered should it be stolen or damaged by fire.
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 pay.
Transaction
A transaction is any payment in or out of a bank account.
Travel insurance
When you travel abroad you may want to take out travel insurance. Many countries will not treat you if you have an accident or fall ill unless you can pay the possibly expensive medical bills. Some travel insurance policies will cover such events as the cost of flying you home early, reimbursement for lost luggage or cancelled flights etc.
Travellers’ cheques
Special cheques that can be used abroad and are a safe way to carry money overseas.
