UNIT 3 TOPIC 1 -Personal financial sustainability

Why are sustainable personal finances important?

• Only for individuals

• For the future financial and economic health of the country

• Only for businesses

• For increasing national debt

What does sustainability in personal finances mean in this context?

• Increasing expenditure beyond income

• Achieving and maintaining a balance between personal income and expenditure

• Reducing income to minimum levels

• Avoiding financial planning

What is the time frame considered for achieving sustainable personal finances?

• Short term only

• Medium term only

• Long term only

• Short, medium, and long terms

What was the unemployment figure in the UK in November 2011?

• 1.62m

• 2.12m

• 2.7m

• 1.5m

What is the purpose of having an emergency fund?

• To invest in the stock market

• To fall back on when there is an unexpected reduction in income

• To pay for luxury vacations

• To buy a new car

What type of insurance required for personal possessions in the home?

• Health insurance

• Travel insurance

• Home contents insurance

• Life insurance

What are 'what if' calculations used for?

• To predict future income

• To reflect potential changes in a product’s features, terms, or conditions

• To determine the best investment options

• To calculate annual taxes

What is an example of a time when expenses are likely to be higher for most people?

• During the summer holidays

• During Christmas or other festive periods

• During the school term

• During the spring season

What might someone do to increase their income to cover higher expenditure?

• Spend more money

• Work less

• Rent out a spare bedroom

• Take a vacation

What might someone do to build up their savings during times of greater income?

• Spend more money

• Ignore the extra income

• Plan to spend more

• Save the extra income