Managing Money

Which of the following are examples of financial services provided by banks or building societies?

• Savings accounts

• Mortgage loans

• Free financial advice

• All of the above

Which of the following are examples of advantages of saving money?

• Financial security

• All of the above

• Save up for something special

• Emergency fund

Which of the following is an advantage of borrowing money?

• Allows you to purchase something you couldn't normally afford

• Increased financial worries

• Higher interest payments

• Decreased credit score

Which of the following is a disadvantage of borrowing money?

• Increased debt

• Improved credit score

• Higher savings

• More investment opportunities

Name two methods of how and how often you should get paid for your job by your employer.

• Hourly rate/weekly

• Salary/Monthly

• Cash in hand

• Get paid when your boss has it.

Name three types of deductions from earnings.

• Tax deductions

• National Insurance

• Commission

• Pension

Which of the following are examples of items that make up a household budget?

• Rent or mortgage payments

• Groceries

• Fuel bills

• All of the above

Outline the importance of personal budgeting.

• It helps with tracking expenses and savings

• It is not necessary for financial planning.

• It complicates financial management.

• It is only useful for businesses.

What is a benefit of using cash for transactions?

• No interest charges

• Requires a bank account

• Limited spending control

• Risk of theft

What are the potential disadvantages of using debit/credit cards for transactions?

• Easy to overspend

• Risk of fraud

• You may be charged

• All of the above