GCSE · Maths · AQA · Spec 8300
Household finance vocabulary
Sell a hoodie for more than you paid. Tap a card for lunch. Borrow money for a phone. Each has its own money word. Can you name them?
Maths · Household finance
Which money word is this?
Pick a situation, then pick the money word it describes. Commit first: the reason only appears once you have chosen.
Still to sort
Cost price (0)
What an item cost to buy.
Where the line is: Same item, two prices: the cost price is what was paid to buy it, and the selling price is what it goes for when it is sold.
Selling price (0)
What an item is sold for.
Profit (0)
Sold for more than the cost price.
Where the line is: Profit or loss? Compare the selling price with the cost price. Sold for more means a profit; sold for less means a loss.
Loss (0)
Sold for less than the cost price.
Debit (0)
Your own money, taken straight out of your own bank account.
Where the line is: Debit or credit? Ask whose money is being spent. Your own is debit; money borrowed from a lender is credit.
Credit (0)
Borrowed money from a lender. Interest may be added.
Balance (0)
The money remaining on a card.
Income tax (0)
A tax on income, such as money earned from working.
Where the line is: Income tax or VAT? Ask what is being taxed. Money people earn means income tax; the price of goods and services means VAT.
VAT (0)
A tax on most goods and services, built into the price.
Interest (0)
Extra money added to savings or to loans.
Maths · Percentage profit and loss
Some goods cost £19.70 altogether. That cost price stays fixed at 100%, and the scale under the bar shows the selling price as a percentage of it. Drag the selling price and watch the profit or loss change.
WHAT YOU'VE LEARNED
A quick recap of today's lesson.
Every money word names a particular amount in a particular situation. And percentage profit, loss and interest are always measured from where the money started.
What you need to know
- Cost price is what an item cost to buy. Selling price is what it is sold for.
- A profit is made when something sells for more than its cost price, and a loss when it sells for less.
- A percentage profit or loss is a percentage of what it was at first, which is the cost price. A 10% profit means selling for 110% of the cost price, so you multiply by 1.1.
- Paying by debit takes the money straight out of your own bank account. Paying by credit means spending borrowed money from a lender, and interest may be added.
- The balance is the money remaining on a card. Each payment made with the card is taken off it.
- Income tax is a tax on income, such as money earned from working. Most people in the UK have a tax-free Personal Allowance, and people who earn more pay more income tax.
- VAT (Value Added Tax) is charged on most goods and services and is built into the price customers pay. The standard UK rate is 20%, and items such as most food and children’s clothing have a zero rate.
- Interest is extra money added to savings or to loans. It is the charge a borrower pays a lender. The interest rate gives the interest as a percentage of the sum saved or borrowed.
The big picture
Household finance has its own vocabulary, and questions set in context expect you to spot which word applies. Cost price is what something cost; selling price is what it sells for. Selling for more makes a profit and selling for less makes a loss; a percentage profit or loss is worked out from the cost price. Debit spends your own money; credit spends money borrowed from a lender, and interest may be added. The balance is what is left on a card. Income tax is a tax on income, while VAT is built into prices. An interest rate gives interest as a percentage of the sum saved or borrowed.
Key points
Worked example
Problem
Maya bought a bike for £120. A year later she sold it for £90. Did she make a profit or a loss, and what is it as a percentage?
⚠ Watch out
Working out a percentage profit or loss from the selling price. The percentage is always of what it was at first, which is the cost price. So divide the profit or loss by the cost price, never by the selling price.
Memory hook
Start from the start: percentage profit, loss and interest all come from where the money began. Then ask whose money it is. Mine is debit; a lender’s is credit.
Check yourself
A shop buys a jacket for £50 and sells it for £60. Profit or loss, and what is it as a percentage? (A profit of £10, which is 20% of the £50 cost price.)
Flashcards
(12)Cost price
Selling price
Profit
Loss
A percentage profit or loss is a percentage of what?
Paying by debit
Paying by credit
Balance
Income tax
VAT
Interest
Interest rate
Tap any card to flip it, or use Study as deck to go through them one at a time. In the full lesson these run as a spaced-repetition deck — you rate each card Hard, Good or Easy and the tricky ones keep coming back until they stick.
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