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WorksheetsA4 Managing Personal Finance
Total questions: 20
Worksheet time: 11mins
What is an emergency fund?
A savings account set aside for unexpected situations.
A way to invest for retirement.
Something most people don't need, because emergencies are rare.
An investment account that can grow over time.
What is debt?
Money you have borrowed and need to pay back
Money you make from working at a job
Money you make from the government
Taxes that you pay when you buy something
What is insurance?
A service purchased to protect assets and income against financial loss.
A type of savings account where you put aside money for emergencies.
A type of investment account where you can buy shares of stock.
A kind of taxes charged by the government.
Paying for something with money that is borrowed and must be paid back, usually with interest is known as:
credit
income
resources
salary
What are some benefits to starting a savings account early?
you can earn interest on money saved
putting money aside will help avoid spending it on something else
setting a savings goal will help
all of the above
What is the main benefit to ISA's?
Notice is often required when wishing to withdraw money
Chance of winning a prize
Tax is not charged on the interest earned.
Planned expensese are expenses that you know about. Which are examples of planned expenses?
groceries
car insurance
utility bill (gas, water, and electric bill)
all of the above
Which of these terms could be used to describe debt in the form of a mortgage or car loan? (Choose all that apply.)
secured
unsecured
revolving
What are stocks?
sharing something
An ownership share in a company
A graph with pointy arrows that are red and green
What is investment?
money spent on something with the goal of making more money
money spent on other things
money spent on saved products
A facility to overspend on a current account up to an agreed sum
Overdraft
Bank Loan
Mortgage
Pay day Loan
A set amount of money provided, to an individual or couple, for a specific purpose, to be repaid with interest, over a set period of time
Mortgage
Personal Loan
Overdraft
Hire Purchase
Issued by the government and when buying them, you are effectively lending money to the government, which promises to pay back the amount in full at a set date, along with interest.
Premium Bonds
Corporate Bonds
Gilts
Deposit and Savings Accounts
Which of these is not a feature of third party insurance?
Will never pay for damage to your own car
Minimum legal level of cover in the UK
It will not pay if the car is stolen or damaged by fire
Covers damage to own car
Which three are features of comprehensive insurance? More than one choice can be selected.
Covers damage to the car as a result of accident, fire or theft as well as cover for windscreen damage
Minimum level of legal cover in the UK
Cover third party damage if you have an accident
Cover includes other items such as personal injury/accident and medical expenses
There are 6 types of borrowing. Select all that apply:
Overdraft
Credit cards
Payday Loans
Bonds and gilts
Mortgages
Hire Purchase allows you to...
Pay cash for an item
Rent something for free
Use the item immediately but pay for it in regular instalments
To borrow a set amount of money
The rewards to saving are: (tick any that apply)
Interest payments
Financial security
High risk
Usually there are really high interest rates available
The rewards to investing are: (tick any that apply)
Potential for a high financial return
It can be exciting for some people who hope for a high return
Peace of mind / no risk
Easy to save this way
