Mastering Money Management Skills

What is a good strategy to help you save?

• 1st, spend money on all expenses; put the rest into saving

• Tap into your savings on a regular basis to purchase small items, like snacks

• Pay yourself first - set aside money for savings each month

• Keep your spending and saving money together in 1 account

What is the primary purpose of creating a budget?

• To track your spending habits

• To ensure you spend all your money

• To plan for future expenses and savings

• To avoid paying taxes

Which of the following is a common saving strategy?

• Spending all your income

• Saving a fixed percentage of your income each month

• Borrowing money to save

• Investing in high-risk stocks without research

What is a credit score used for?

• To determine your height

• To assess your creditworthiness

• To calculate your monthly expenses

• To measure your intelligence

Which of the following is a good debt management technique?

• Ignoring your debts

• Making minimum payments on all debts

• Prioritising high-interest debts for repayment

• Taking on more debt to pay off existing debt

What is the 50/30/20 rule in budgeting?

• 50% needs, 30% wants, 20% savings

• 50% savings, 30% needs, 20% wants

• 50% wants, 30% savings, 20% needs

• 50% needs, 30% savings, 20% wants

Which of the following is NOT a benefit of having a good credit score?

• Lower interest rates on loans

• Easier approval for rental applications

• Higher insurance premiums

• Better credit card offers

What is an emergency fund?

• Money set aside for unexpected expenses

• Money used for daily expenses

• Money borrowed from friends

• Money invested in stocks

How often should you review your budget?

• Once a year

• Every five years

• Monthly

• Never

What is the impact of missing a credit card payment on your credit score?

• No impact

• Positive impact

• Negative impact

• It doubles your credit score