LONDON -- Britain is set to honor its revered wartime leader Winston Churchill with a banknote featuring his portrait and famous declaration, "I have nothing to offer but blood, toil, tears and sweat."
The governor of the Bank of England, Mervyn King, travelled to Churchill's former home Chartwell in Kent, southern England on Friday to announce plans for Churchill's image to appear on a new 5 pound ($7.70) note to be issued in 2016.
"Sir Winston Churchill was a truly great British leader, orator and writer. Above that, he remains a hero of the entire free world," outgoing central bank governor King told members of the Churchill family.
Churchill, no stranger to the British currency after his face was emblazoned on a five shilling piece in the 1960s, joins the ranks of Isaac Newton, William Shakespeare and Charles Dickens who have all adorned banknotes in the past.
Queen Elizabeth is on one side of each of Britain's four denominations of bank notes, while celebrated Britons take their turn for 10 to 20-year stints on the overleaf.
This will be the third change of bank note announced under King, who steps down from the Bank of England's top job after a 10 years on July 1. He brought fellow economist Adam Smith onto the 20 pound note and the inventors of the steam engine to the 50 pound note.
The Bank of England said that while the plan was for Churchill to feature on the five-pound note, that decision hadn't been finalized.
The blue-green design sets Churchill, who as prime minister led the country to victory over Nazi Germany in World War Two, against the backdrop of Westminster and the Nobel Prize medal which he won for literature in 1953.
The "blood, toil, tears and sweat" quotation, one of the most famous from his huge repertoire and taken from his first speech as prime minister in 1940, will be inscribed beneath a portrait photograph taken in 1941.
The current batch of notes features prison reformer Elizabeth Fry, naturalist Charles Darwin, economist Smith and Matthew Boulton and James Watt, inventors of the steam engine.
Banknotes have had historical figures on them for around 40 years but Churchill will be only the second prime minister after the Duke of Wellington to feature on a note and one of only a few individuals from the 20th century.
10 Questions to Challenge Your Money Smarts
Churchill's Portrait to Grace Britain's New 5 Pound Note
A. 50 percent
B. 43 percent
C. 31 percent
Whether you rent or buy, it's best to keep your housing costs at a maximum of 31 percent.
A. Close old credit card accounts you no longer use.
B. Pay down your debt to at least 25 percent or less of each credit card limit.
C. Consolidate your debt on one balance-transfer credit card.
Canceling a credit card account could cause your credit score to decline because it lowers the overall available credit you have been granted. And while a balance transfer may help you pay your debt faster, watch out: Your credit score could go down if the money you transfer maxes out that single credit card.
A. Once per year.
B. Only when you've been turned down for a loan or credit card.
C. Three times per year.
If you are denied credit based on something in your credit history file, you are eligible for a free credit report from the reporting bureau used. However, regardless of your credit activity, you can get one free credit report each year from EACH of the three credit reporting agencies (Experian, TransUnion and Equifax). You ca access your free credit report at www.annualcreditreport.com.
B. Two months of rent or mortgage payments
C. Six months of living expenses
While the amount varies according to your living costs, your other assets, and whether you are a one- or two-income household, a good starting place for emergency savings is having enough to cover six months of living expenses.
A. A single mother with two young children
B. A two-income married couple without children
C. An elderly widow
Life insurance is essential for someone who is the sole income provider for a family. So, while the others may want life insurance to provide for family members, the single mother needs the most protection for her children in the case of her death.
A. Your current credit card balance
B. Your payment history
C. Your income
Credit reports do not take into account your income.
A. Jane, who makes the minimum payment on her credit card bill every month.
B. Joe, who pays the balance on his credit card in full every month.
C. Joyce, who sometimes pays the minimum, sometimes pays less than the minimum, and missed one payment on her credit card bill.
Skipping a payment -- or paying less than the minimum amount due -- is likely to cause your credit card company to raise your interest rate. Paying only the minimum will also result in paying large amounts of interest over time.
A. Pay your bills on time.
B. Hire a credit repair company.
C. Cancel your credit cards.
Cancelling your credit cards won't help because the balance owed and your payment history will stay on your credit report. A credit repair service cannot fix accurate negative information. Only time -- and a consistent ongoing payment record -- can fade the impact of negative information.
A. Certificate of deposit.
B. Checking account.
C. Money market account.
In general, most CDs limit your withdrawals to the end of the CD term; money market accounts allow only six withdrawals per month; and you can get money from a checking account as many times as you want. However, rules can vary from institution to institution. So know the terms on your account to avoid getting socked with a surprise fee.
A. Tom saves $1,000 per year from age 25 to 35 in an account earning 8 percent interest and then stops saving.
B. Tracy saves $1,000 per year from age 35 to 65 in an account earning 8 percent interest.
C. Both the same.
Surprise! Even though Tom invested only $10,000 and Tracy saved $30,000, Tom comes out ahead in this savings scenario with $169,000 in his account compared to Tracy's $125,000. That's because Tom's money had a longer time to grow. That's the miracle of compound interest in action.