Prep 5 - Economic Wellbeing

Which of the following is an example of a need rather than a want?

• A new video game

• A warm winter coat

• Sweets

• A toy robot

Why is it important to focus on needs before wants when making a budget?

• Needs are usually more expensive

• Needs are essential for living

• Wants are always more fun

• Wants help you save money

Which of the following is a source of income?

• Buying sweets

• Earning pocket money

• Paying for a bus ticket

• Spending on clothes

What is the main purpose of creating a budget?

• To spend as much money as possible

• To keep track of income and expenditure

• To buy more wants

• To avoid saving money

Which of the following is an example of expenditure?

• Receiving birthday money

• Getting paid for chores

• Buying a book

• Winning a prize

What does it mean to prioritise your needs and wants?

• Spend all your money on wants first

• Decide which needs and wants are most important

• Ignore your needs

• Only buy things you want

If you borrow money from a friend, what is your responsibility?

• To spend it on anything you like

• To pay it back as agreed

• To keep it

• To give it to someone else

Which of the following is a possible consequence of borrowing money and not paying it back?

• You get more money for free

• You might lose trust with your friend

• You never have to pay it back

• You get a reward

What is the difference between loaning and borrowing?

• Loaning means giving money; borrowing means receiving money

• Loaning means spending money; borrowing means saving money

• Loaning means earning money; borrowing means losing money

• Loaning and borrowing are the same

Which of the following is an online financial risk?

• Saving your money in a bank

• Sharing your bank details with strangers online

• Buying from a trusted shop

• Earning pocket money