Budgeting
When budgeting, you should be saving 10% of your weekly income.
If Pauline earns $640 a week, how much should Pauline be saving each week (10%)?
$64 per week in savings
Explain the difference between good and bad debt, give examples
Good debt will make you money and go up in value eg. a house mortgage
Bad debt will cost you money and go down in value eg. a car
Alex has been approved for a credit card without an interest-free period.
When does Alex start paying interest on his credit card?
From the day they make a purchase or from the day their monthly statement is issued.
True or False?
We started using the one dollar coin in 1984 and the two dollar coin in 1988.
TRUE!!
We started using the one dollar coin in 1984 and the two dollar coin in 1988. Before that we had a one dollar note and a two dollar note.
When did the Australian dollar replace the pound?
A). 1910
B). 1953
C). 1966
D). 1988
C- 1966
Chloe earns $180 per week working part time in town. Chloe has the following expenses each week:
- Mobile phone $30
- Board (rent to parents) $20
- Transport $10
- Movies $20
- Netflix $8
What is Chloe's budget remaining?
$92
David wants to buy a new laptop to use for school, the laptop costs $1,000 on sale ending in 24 hours. David has $540 saved and will be paid by work in 4 days time.
What is David's options so that he can purchase the laptop at the sale price?
- Pay day loan
- Ask a friend or family member for a loan
- Sell valuable items
Tayla is thinking about purchasing a credit card to use during her travels around Australia.
Advise Tayla 3 advantages and 3 disadvantages of owning a credit card
Advantages: safer than cash, builds credit rating, earn rewards, gives you emergency money
Disadvantages: high interest rates, credit card fraud, annual fees, credit damage if unable to repay
How many sides does a 50 cent coin have?
Until 1969 the fifty cent coin was round! Now it has twelve sides
True or false?
Investing in shares will make you a part-owner of a business
True!!
Buying shares in a company means that you own part of the business. As an owner, you have certain rights which include attending annual general meetings (where decision are made on electing new directors and executive pay).
Ella is a uni student earning $420/week working part time. Ella has the following expenses:
- Rent $210
- Electricity $15
- Water $15
- Phone plan $30
- Groceries $90
- Going out for dinner $50
Identify which of the above expenses are fixed, flexible or discretionary
Fixed: Rent, phone plan
Flexible: Electricity, Water, Groceries
Discretionary: Going out for dinner $50
Lily just purchased a car for $15,000 after getting a loan.
Two months later, Lily loses her job and is unable to find work. She is unable to keep paying the loan repayments of $450 a month.
- What are Lily's options?
- What would happened to Lily's future if she does not act quick?
Options: sell assets (car), ask for a loan from friends/family, declare bankruptcy, speak to bank and work out an arrangment
Future:
Lily could find it extremely difficult to secure any form of credit or type of loan (e.g. car loan or mortgage) if credit rating is damaged.
She could also have been declared bankrupt.
Mason is thinking about applying for an interest-free loan. Advise Mason on how these loans can go wrong.
- Unable to pay off the item within the interest free period
- At the end of the period a extremely high rate of interest (12-30%) is charged to the outstanding balance
- End up with a poor credit rating
Who am I?
- Named the "youngest self-made billionaire of all time"
- At age 20 I was worth $900 Million
- I am well known for making my money designing and selling cosmetic lines
Kylie Jenner
Lenders mortgage insurance protects the bank, not me.
True!!
Lenders mortgage insurance protects your bank or lender in case you default on your home loan and there is a shortfall after the sale of the property.
LMI may be required if your home loan deposit is less than 20 per cent of the property's value (as valued by your lender).
Mortgage protection insurance is a product that protects the borrower (you) in case of loan default
Caitlin is planning on purchasing her first home and is looking at the different loans on offer. Which is the best loan option for Caitlin and why? What is the comparison rate?
Home loan A: Interest rate (8%), Fees & Charges (0.5%)
Home Loan B: Interest rate (8.25%), Fees & Charges (0.1%)
Home Loan C: Interest Rate (7.8%), Fees & charges (0.8%)
Home Loan B: Interest rate (8.25%), Fees & Charges (0.1%)
Comparison rate of 8.35%
Who am I?
- I have a successful music career, fragrance, and clothing brands
- successful investor: working with a business manager to make key investments in companies like Spotify
- 26-year-old is reportedly worth $285 million
- I have a song called STAY
Justin Bieber
Name the "Big 4" Banks in Australia
Commonwealth Bank
ANZ
Westpac
NAB
Who was the self-made billionaire who made the first social network?
Mark Zuckerberg
Identify what animal is on the 'tails' side of each of the following Australian coins:
- 5 cent coin
- 20 cent coin
- one dollar coin
- The five cent coin has a picture of an echidna
- The twenty cent coin has a picture of a platypus
- The one dollar coin has a picture of five kangaroos