Basic Money Management

What are 'wants'?

• Things we cannot live without

• Things we desire but may not actually need

• The process of preparing a spending plan

• Methods of payment

What are 'needs'?

• Things we desire but may not actually need

• Things we cannot live without

• The process of preparing a spending plan

• Methods of payment

What is budgeting?

• The process of earning money

• The process of preparing a spending plan

• The method of paying bills

• The process of saving money

Which of the following is a disadvantage of using cash?

• Widely accepted

• Fast and convenient

• Can get lost or stolen

• Can be used for online transactions

Which method of payment requires topping up when the value runs low?

• Cash

• Stored-value card

• Debit card

• Cheque

Which of the following is an advantage of using a debit card?

• Can be sent through post

• Can be used for online transactions

• Card holder may buy on impulse

• Incurs interest if not paid by due date

Which method of payment might have the signature forged as a disadvantage?

• Cash

• Stored-value card

• Cheque

• Hire purchase/instalment

What is a disadvantage of using a credit card?

• Cannot be used for online transactions

• May lead to overspending

• Need to top up if the value runs low

• Safe and convenient to carry around

What is one disadvantage of hire purchase/instalment?

• Need to make full payment at the time of purchase

• Allows paying a manageable amount at regular intervals

• Total cost is higher due to interest

• Can be sent through post

Which of the following is an advantage of using credit?

• Incurs additional costs such as fees and interest

• Encourages overspending

• Provides convenience

• May lead to bankruptcy