PSHE - Y10 -Autumn - Saving Money

How can you check how much money you have in your current account?

• View an ATM/cashpoint

• Visiting your bank/building society branch

• Logging on to online banking

• Via a mobile banking app

Answer explanation

You can check the balance of your account via any of these methods. The quickest is likely to be a mobile banking app.

Which term describes your bank account if the balance drops below £0?

• Under-balance

• Over-balance

• Overdraft

• Bank draft

Answer explanation

If you attempt to buy something when your bank account balance is below £0, you use money from your overdraft. Not all accounts have overdrafts, and some have costs for using them.

Which of the following forms of borrowing do you think has the highest risk associated with it?

• Loan sharks

• Mortgage

• Credit card

• Payday loan

Answer explanation

Loan sharks are people who lend money illegally. Because they are unregulated by the law, they are a high risk of borrowing money. There is no paperwork so they can change the terms without warning.

What does the term 'Annual Percentage Rate' (APR) mean in relation to a credit card?

• The minimum amount you must repay on the total amount you owe

• The percentage of your annual income that you must use to repay credit card debts

• The interest rate you pay for borrowing money

• The amount you can borrow over a year without paying interest

Why is your credit rating important?

• It can affect if lenders will lend you money

• It can impact on the interest rates lenders set for you

• It can affect how likely banks are to give you a mortgage to buy a house

• It lasts for 6 years

Answer explanation

Your credit rating records your money habits. It takes into consideration late payments.

Which of the following could have a negative impact on your credit rating?

• Having a credit card

• Paying your mobile phone bill by Direct Debit

• Living at the same address for a long time

• Missing payments on a credit card

Which is the most important bill to pay first if you are in financial difficulty?

• Council tax

• Broadband - telephone and internet

• Water

• Digital TV package

Answer explanation

Council tax is a priority debt. If you don't pay it, you could be summoned to court.

How much is an annual TV license to watch live or recorded TV or use BBC iPlayer?

• Under £50

• Between £50 and £100

• Between £100 and £200

• Over £200

Answer explanation

UK TV license is currently £159. If you don't pay this, you could face a fine up to £1000.