Understanding Personal Finance Basics

How much deposit do you need to buy your first house?

• 3%

• 5%

• 10%

• 20%

If you earn £1,200 per month and your monthly expenses are £950, how much can you save each month?

• £250

• £350

• £450

• £550

Which of the following is a type of tax that is deducted directly from your salary?

• Value Added Tax (VAT)

• Income Tax

• Council Tax

• Inheritance Tax

If your electricity bill is £60, your water bill is £40, and your council tax is £110 what is the total amount you need to pay for these bills?

• £220

• £210

• £230

• £110

What is a mortgage?

• A type of savings account

• A loan to purchase property

• A tax on luxury goods

• A monthly subscription service

Gross income is ______?

• Income before tax

• Income after tax

Which of the following is NOT considered an essential expense?

• Rent

• Groceries

• Gym membership

• Utility bills

If you receive a 10% pay rise on a salary of £20,000, what will your new salary be?

• £21,000

• £22,000

• £23,000

• £24,000

What is the term for the amount of money you have left after all taxes and deductions are taken from your salary?

• Gross Income

• Net Income

• Disposable Income

• Total Income

What is the tax free allowance amount?

• £12,570

• £11,000

• 20% of your wage

• Half your wage