Year 8 PSHE Money Management Quiz

What is a budget?

• A detailed plan for spending money

• A record of past spending

• A loan request

• A type of savings account

Why is it important to save money?

• To be able to handle unexpected expenses

• To spend more on luxury items

• To avoid working

• To lend money to friends

What does APR stand for in terms of credit?

• Annual Percentage Rate

• Automatic Payment Requirement

• Average Percentage Rate

• Annual Payment Ratio

Which of the following is a good financial goal for a teenager?

• To buy a new smartphone every year

• To save money for college

• To spend all money received on weekends

• To borrow money to buy video games

What is the main purpose of creating a personal budget?

• To ensure you spend all your money each month

• To plan how to spend and save money wisely

• To impress friends with financial knowledge

• To calculate taxes

What is a consequence of not managing credit well?

• Increased savings

• Lower credit score

• More job opportunities

• Higher income

Which of the following is a benefit of saving money at a young age?

• You can buy more expensive items in the short term

• You can handle emergencies better

• You can ignore budgeting

• You can avoid learning about finances

What is meant by "credit history"?

• A list of personal assets

• A record of all past borrowing and repayments

• A yearly report of income

• A monthly budget review

How can budgeting help with achieving financial goals?

• By increasing the amount of debt one can incur

• By tracking expenses and adjusting spending

• By eliminating the need to save

• By guaranteeing increased income

What is a "savings account" primarily used for?

• To borrow money

• To save money and earn interest

• To keep financial records

• To pay for daily expenses