Personal Finance & Consumer Education

These vocabulary flashcards cover key financial terms, consumer protection laws, investment concepts, and budgeting strategies from the Year 10 Commerce curriculum.

Personal finance

The management of money and financial decisions for a person or family, including budgeting, investments, and retirement planning.

Money

A way of making payment, usually by notes or coins.

Currency

The type of notes and coins accepted in a particular country.

Income

Money received for work, through investments, or government payments.

Windfall

A large amount of money that is won or received, usually unexpectedly, such as winning lotto or a rich relative passing away.

Scam

A dishonest attempt to trap a person into parting with their money; a fraud.

Theft

The action or crime of stealing.

Investment scam

The top scam by loss according to Scamwatch data, accounting for over $172 million in reported losses.

Consumer

A person who purchases goods and services for personal use.

Cheque

A promise to pay a specified amount of money to an individual or to organisations.

Direct debit

An amount automatically deducted from a person's credit card or savings account on a regular basis, usually to pay a bill.

Credit card

A small plastic card issued by a bank or building society, allowing the holder to purchase goods or services on credit.

Buy now pay later

A service where a consumer pays by installments over time instead of paying the full amount upfront.

Income tax

A tax levied on the money people earn from working or through investments.

Debt Cycle

A recurring situation where being short of cash leads to using credit, causing balances to grow and payments to become higher while income stays the same.

Payday loan

A small amount loan that lets a person borrow up to $2,000$ with a repayment period between $16\text{ days}$ and one year.

Warranty

A written promise by a dealer or manufacturer that a product is free from faults, assuring rectification or replacement at no charge if it breaks within a set time.

Cooling off period

A period of time after a sale contract is agreed during which the buyer can cancel the contract without incurring a penalty.

Trade Practices Act

An Australian law that outlines refunds and exchanges, allowing them if goods are not of merchantable quality or fit for their intended purpose.

Fair Trading Act 1994

An act that outlines safety regulations in Australia covering items such as toys, windows, and food.

Investment

Putting money into financial schemes, shares, property, or commercial ventures with the expectation of achieving a profit.

Capital gain

Profit made when an investment asset is sold for more than its original cost.

Capital loss

A loss incurred when an investment asset is sold for less than its original cost.

Superannuation

A regular payment made into a fund by an employee or employer towards a future pension.

Liquid money

Money in the form of savings that can be easily accessed and spent when needed.

Policy

The official written contract between an individual and an insurance company specifying coverage and rules for claims.

Premium

The amount of money paid monthly or yearly to an insurance company to keep insurance active.

Excess

The amount of money a policyholder must pay themselves when making an insurance claim; the insurer pays the remaining approved amount.

Claim

A request made to an insurance company asking them to pay for a loss or damage covered by a policy.

Budget

An estimate of predicted receipts (income) and expenditure (payments) for a set period of time.

Deficit

A situation where payments (spending) have exceeded receipts (income).

Surplus

A situation where receipts (income) have exceeded payments (spending).

Cliffing

A supermarket practice of taking off brand labels and replacing them with their own generic private labeling.

Cash receipts

Also called cash inflow, this refers to money expected to come in or income.

Cash payments

Also called cash outflow, this refers to expenses or money spent.

3rd Party Insurance

The cheapest car insurance option that only covers other drivers and property damage if the policyholder causes an accident.

Comprehensive Insurance

Detailed car insurance that covers both the policyholder's car and others in the event of an accident.

Road Worthy Certificate (RWC)

A document provided by a mechanic assessing a vehicle as safe to drive, required for vehicle registration in Victoria.

ANCAP

A safety rating for cars where a higher rating indicates a safer vehicle based on features like airbags and ABS Brakes.

Mileage

The odometer reading of a car referring to how many kilometres it has travelled.

Opportunity cost

The loss of potential gain from other alternatives when one alternative is chosen over others.