Finance 101

Budgeting

Savings & Investment

Cash, debit and credit cards

Taxes

100

What is the definition of budgeting?

Budgeting is a proactive approach to organizing your finances. It is a financial plan where you estimate your income, savings and expenses.

100

Which usually offers a higher interest rate, savings or investing ?

Investing

100

Do you get more rewards for using your debit or credit card?

Credit card

100

What is the income tax rate in Barbados for income up to $50,000?

12.5%

200

What are the two rules of budgeting?

Never let your expenses exceed your income
Watch where your money goes or in other words track your spending habits.

200

How many months of living expenses should an emergency fund cover?

3 - 6 months of living expenses

200

List two cons of using cash only.

Cash is easy to lose

Withdrawal fees may be high

Hard to keep track of

200

What is the name of the online portal used to file income taxes in Barbados?

Tamis

300

List three (3) ways you can do a budget.

Pencil and paper

Excel

Online web page

App

300

If you cancelled a retirement account early, what is the penalty percentage you must pay in taxes?

25%

300

List three (3) pros of using a credit card.

Credit cards have some advantages over cash. Here are three:
Convenient
Highly secure
Rewarding when used properly

300

What does PAYE stand for?

Pay as you earn

400

List two types of budget approaches discussed today.

Zero-based budgeting

50/30/20 budgeting

Envelope method budgeting

400

List four ways you can save or invest.

Savings challenge

Save at the bank

Invest in stocks

Invest in bonds

Save at home

400

What is the difference between a debit and credit card.

Debit cards are linked to your bank account and deduct money directly from it when you make a purchase.
Credit cards provide you with a line of credit that you can borrow against and pay back later, with interest and fees if applicable.

400

What is the tax-free allowance of income in Barbados?

$25,000 per year