Personal Finance and Investment Checkpoint 1

What are the possible terms to describe the money that your employer pays you? (you can choose more than 1)

• income

• expense

• salary

• bribe

• blackmail

We have only explored one kind of tax. What it is called?

(a)  

What is housing benefit?

• The Housing Benefit in China is made up of contributions by individuals and their employers (25:75). This can be used towards rent or the deposit for property.

• The Housing Benefit in China is made up of contributions by employers. This can be used towards rent or the deposit for property. It can also be used for renovation.

• The Housing Benefit in China is made up of contributions by individuals and their employers (50:50). This can be used towards rent or the deposit for property. It can also be used for renovation.

• The Housing Benefit in China is made up of contributions by individuals. This can be used towards rent or the deposit for property. It can also be used for renovation.

How do we calculate discretionary income?

• = income - expenses

• = income - taxes

• = income - taxes - expenses

Discretionary income can be allocated towards... (you can choose more than one)

• savings

• investment

• a holiday in Paris

• expensive make up

• all of the these and more...

What are examples of household utilities?

• Food

• Water

• Gas

• Electricity

• Heating

What kind of savings should everyone have to protect them from unforeseen events?

(a)  

Is it okay to access your emergency savings for non-urgent needs?

• no

• yes

How much will you have after 10 years if you save 10,000rmb in a fixed term savings account with a compounding annual interest rate of 1%?

(a)  

What is the fundamental understanding about compound interest? (you can choose more than one)

• sustainable growth of personal wealth is a long term activity

• sustainable growth of personal wealth is a short term activity

• the earlier you start saving the better

• wait for the best time to start saving