Financial Literacy Quiz: Test Your Knowledge!

What is Expenditure?

• Money you save

• Money you pay out

• Money you owe

Why should you avoid Debt?

• It improves your credit rating

• It increases your wealth

• The amount owed can grow due to interest charges and can also negatively impact your credit rating

What is a Credit Rating?

• A score given based on your ability to save money

• A score based on how likely you are to repay debts based on previous actions

• A measure of your monthly expenditure

How can a Poor Credit Rating affect you?

• It improves your borrowing options

• It makes borrowing money more difficult, which includes applying for mortgages or car loans

• It has no impact on your finances

What is Bankruptcy?

• A legal statement of inability to pay debts, your bank account will be frozen, you may lose your home, car and any other assets you own

• A way to get more credit

• A financial planning tool

What does it mean to be Solvent?

• Being able to meet your day-to-day expenditures

• Being in debt

• Having no savings

What is an Interest Rate?

• An interest rate is the number of years you must work before you can retire.inwhayt

• An interest rate is the percentage of your total income that you must pay in taxes.

• The amount a bank will pay or charge you for using their services in a financial year.

• An interest rate is a fixed fee that banks charge for opening a savings account.

Draw a piggy bank with coins dropping into it

What events could impact your attitude to money?

• Losing your job

• Buying a house

• A change in the weather

• Watching a nature documentary.

Match the following Influential factors with an example

• • pandemics and conflict

• Global Events

• changes in Income Tax or pensions

• Government Policies

• inflation, recession or growth

• Economic Policies

• New technology changing markets

• Disruptive Technology