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Year 8 PSHE Money Management Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

What is a budget?

a)

A detailed plan for spending money

b)

A record of past spending

c)

A loan request

d)

A type of savings account

2.

Why is it important to save money?

a)

To be able to handle unexpected expenses

b)

To spend more on luxury items

c)

To avoid working

d)

To lend money to friends

3.

What does APR stand for in terms of credit?

a)

Annual Percentage Rate

b)

Automatic Payment Requirement

c)

Average Percentage Rate

d)

Annual Payment Ratio

4.

Which of the following is a good financial goal for a teenager?

a)

To buy a new smartphone every year

b)

To save money for college

c)

To spend all money received on weekends

d)

To borrow money to buy video games

5.

What is the main purpose of creating a personal budget?

a)

To ensure you spend all your money each month

b)

To plan how to spend and save money wisely

c)

To impress friends with financial knowledge

d)

To calculate taxes

6.

What is a consequence of not managing credit well?

a)

Increased savings

b)

Lower credit score

c)

More job opportunities

d)

Higher income

7.

Which of the following is a benefit of saving money at a young age?

a)

You can buy more expensive items in the short term

b)

You can handle emergencies better

c)

You can ignore budgeting

d)

You can avoid learning about finances

8.

What is meant by "credit history"?

a)

A list of personal assets

b)

A record of all past borrowing and repayments

c)

A yearly report of income

d)

A monthly budget review

9.

How can budgeting help with achieving financial goals?

a)

By increasing the amount of debt one can incur

b)

By tracking expenses and adjusting spending

c)

By eliminating the need to save

d)

By guaranteeing increased income

10.

What is a "savings account" primarily used for?

a)

To borrow money

b)

To save money and earn interest

c)

To keep financial records

d)

To pay for daily expenses

11.

What should you do if you want to buy a costly item like a laptop?

a)

Buy it immediately on credit

b)

Save a little each month until you can afford it

c)

Ask friends to lend you money

d)

Ignore other financial obligations to purchase it

12.

What is a disadvantage of using credit cards irresponsibly?

a)

You may have to pay interest on the borrowed money

b)

You will always pay less interest

c)

You will improve your credit score

d)

You will save more money

13.

Why is it important to set financial goals?

a)

To ensure you never have to budget

b)

To guide your financial decision-making

c)

To spend money as quickly as possible

d)

To avoid saving money

14.

What is the best strategy for managing a credit card?

a)

Spend up to the credit limit each month

b)

Pay only the minimum payment due each month

c)

Use it for every purchase to collect rewards

d)

Pay off the full balance each month

15.

How does saving money contribute to financial security?

a)

It allows for immediate large purchases

b)

It reduces the necessity to budget

c)

It provides a cushion for unexpected expenses

d)

It encourages impulsive buying