Test: Budgeting, Saving, Borrowing

What does a budget include:

Why is drawing up a monthly budget useful?

Note: There can be several correct answers to this question

If monthly expenditures exceed monthly income, what could be a good course of action:

Note: There can be several correct answers to this question

You made a huge effort to reduce your expenditures but still find yourself short of £200-300 at the end of each month. What could you do?

Note: There can be several correct answers to this question

You receive your annual credit card statement and are surprised to see a large amount of fees charged over the year.  What is the main thing you can do to reduce these in future?

You find yourself short of money a week before your next paycheck.  What do you do?

Note: There can be several correct answers to this question

Which of the following expense categories is easiest to cut if your budget is in deficit:

Standing orders and direct debits are instructions to banks for paying bills.  Which is more suitable for utility payments:

Why is keeping records of purchases important:

Note: There can be several correct answers to this question

If you receive a monthly allowance from your parents, how do you account for this in your budget:

What is the difference between a credit card and a debit card:

If you want to withdraw cash, which is more expensive?

What is a store card:

What is a prepaid card?

Buy fashion brands

Which of the following can help you save more on your monthly budget:

Which of the following can help you save more on your monthly budget:

Which of the following can help you improve your monthly budget:

A celebrity flaunts designer sunglasses that all your friends find super cool.  What are the financial implications for you:

You see an ad for a TV requiring monthly payments of £20 over 2 years.  You check in the store and the cash price is £300.  Interest rates on savings accounts are 2%. Which is cheaper:

You’re short of cash before the end of the month and borrow £500 from a payday lender.  You must repay £520 in 1 week.  What annual interest rate are you paying?

Which of the following is an advantage of paying cash compared with credit cards:

Your new bank account comes with a free check book.  What are its advantages:

Note: There can be several correct answers to this question

An overdraft occurs when your bank balance goes below zero.  What can be the consequences of this?

Note: There can be several correct answers to this question

Hire purchase is a payment system whereby:

You want to subscribe to an online streaming service.  Which payment options can you use:

Note: There can be several correct answers to this question

You could consider borrowing to buy things that you need if monthly debt payments are less than what proportion of your income?

What is the difference between gross and net income?

You purchase a product and get an invoce for £30 + 20% tax = £36.  Which tax has been added?

If you receive interest on a bond, what tax is due on that interest?

You bought a stock for £10 and sold it for £30.  Capital gains tax is 25%.  How much capital gains tax do you have to pay:

You receive a credit card bill of £140.  You have £205 in your current account.  What should you do:

What happens to credit card balances at the end of each month?

Your credit card statement typically includes a minimum payment.  What should you do?

For which of the following purposes is it appropriate to borrow money:

Note: There can be several correct answers to this question

What is a personal loan:

A bank advertises mortgages with 5% interest. Could the rate you pay be higher?

What is a credit score?

Which factors determine your credit score:

What is the best thing you can do to improve your credit score:

Which of the following can help improve your credit score:

Which of the following can be a consequence of a bad credit score:

Note: There can be several correct answers to this question

What is generally viewed as a reasonable limit for monthly debt payments:

Can an individual go bankrupt?

Which of the following is a consequence of personal bankruptcy:

Which of the following are signs of coming financial trouble?

Note: There can be several correct answers to this question

What does “pay yourself first” mean:

Which of the following is correct:

Note: There can be several correct answers to this question

When is the best time to start saving for retirement:

What does automatic payroll deduction mean:

What does “compound interest” mean: