An Additional Voluntary Contribution (AVC) allows employees to make extra contributions to their pension schemes over and above the standard contributions from their employer or themselves. This helps in enhancing their pension benefits upon retirement.
Baby bonds are low-denomination bonds that make it easier for small investors to participate in the bond market. They are generally worth $5,000 or less and were originally coined to make investing more accessible.
Capital formation refers to the creation or expansion of capital through savings, which are then invested in buildings, machinery, equipment, and other assets that produce goods and services, thereby contributing to economic growth.
A Certificate of Deposit (CD) is a time deposit offered by banks, credit unions, and other financial institutions with a predetermined interest rate and maturity date.
A deposit account is a bank account that allows a person to deposit money and earn interest while keeping the funds accessible for withdrawals and transactions.
Disposable income is the amount of money that individuals have available for spending and saving after personal taxes have been accounted for.
A financial plan is a comprehensive strategy designed to help individuals or businesses achieve specific financial goals, both short and long-term. Financial planning covers aspects such as budgeting, investments, savings, taxes, and retirement planning.
A tax-advantaged savings account available in the UK that allows individuals to save or invest a certain amount per year without paying personal income tax or capital gains tax on the earnings.
ISA stands for International Standard on Auditing and Individual Savings Account, addressing auditing standards and personal savings respectively.
Life Assurance is an insurance policy that pays a specified amount of money on the death of the life assured or, in the case of an endowment assurance policy, on the death of the life assured or at the end of an agreed period, whichever is the earlier.
The Marginal Propensity to Invest (MPI) is a measure in economics that defines the proportion of additional national income that will be invested rather than consumed or saved.
The Marginal Propensity to Save (MPS) represents the proportion of additional income that is saved rather than consumed by households. It plays a critical role in determining the economy's potential for investment and growth.
Retirement is the act of leaving active employment permanently, with income for the remaining years of life typically coming from sources such as Social Security, pensions, and personal savings.
Savings refer to the amount of disposable income that is not spent on consumption. The percentage of gross income that is saved defines the savings rate, a key indicator of economic health.
The savings rate represents the portion of income that is saved rather than spent. It is an important economic indicator that reflects the propensity of individuals or economies to save.
A term certificate, more commonly known as a Certificate of Deposit (CD), is a widely used savings option with a fixed maturity date, often chosen for its reliable interest rates and diverse term lengths.
A term used to describe a person or purchase characterized by being frugal, economical, or sparing. A thrifty buy or product is one where the consumer gets good value for the price.
