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payday loan

A cash advance against your next pay. These short-term loans charge a high interest rate and must be paid back by a certain date.


See product disclosure statement.


An income stream that makes regular income payments. Examples include the government age pension or an account-based pension from your super fund.

personal identification number (PIN)

A number used as a security access code for phone banking and to withdraw money from an ATM or via EFTPOS.

personal insolvency agreement

Similar to a debt agreement but more structured and formal and costs more. Your property comes under the control of a trustee who must investigate your financial affairs. Your name, some personal details and details of the controlling trustee and creditors meeting must be advertised in a local or national newspaper.

personal loan

A low-value loan for personal use such as to buy a car or take a holiday. These loans are usually not secured by an asset and are usually payable over 2-7 years.


Emails or text messages that attempt to trick you into giving out your personal information such as usernames, passwords or banking details.


See personal identification number.


See Power of Attorney.

ponzi scheme

A type of fraud that uses money from new investors to make interest payments to earlier investors. The schemes typically offer high rates of return and fall apart when no new investors can be found.

Power of Attorney

A document that appoints someone to act on your behalf in a legal or business matter. A Power of Attorney (PoA) may be general or specific and may be unlimited or limited to a specific act. It is different to an enduring power of attorney.


In relation to an insurance contract, it is the price charged by an insurance company for providing the insurance cover.

preservation age

The age at which you can withdraw your super. You must also meet a condition of release.

preserved benefit

A super benefit that remains in a super fund until the member reaches preservation age and, in most instances, retires from the workforce.

price earnings ratio (P/E ratio)

A financial ratio that can be used to work out whether the price of a share is over or undervalued compared to its competitors. To work out a P/E ratio, the current price of the share is divided by the earnings per share (EPS).


The original sum of money invested, or the amount borrowed or still owing on a loan.


A document issued by a court certifying the validity of a will and authorising the executor to administer the estate in accordance with the provisions of the will.

product disclosure statement (PDS)

A document that financial service providers must provide to you when they recommend or offer a financial product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure.

property investment

Land and/or buildings, purchased to provide an income and/or capital growth.

property trust

A fund that invests in residential or commercial properties on behalf of a group of investors.


A document issued by a company that wants to raise money from the public by offering shares in the company or a trust. It must contain all the information you or your adviser would need to make an informed decision about investing in the company, including what the company plans to do with the funds raised.

public trustee

Government agency or business that provides professional and independent services such as making wills, acting as an executor in deceased estates, managing trusts and Powers of Attorney.

pump and dump scam

When scammers artificially inflate the share price of a stock by posting positive news items (not necessarily true) to increase trading. Once the price increases, the scammers sell the shares at the inflated price.

pyramid scheme

Illegal form of multi-level marketing where you receive benefits for recruiting others to join the scheme. Most of the income is earned by recruiting others, rather than selling the good or service.

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