Check out how much you know about money and where it comes from in this quick quiz
1. If you save £150 for a year, how much extra would you get if you put it in a savings account paying 5% rather than keeping it at home? a) £2.50 b) £5.00 c) £7.50 d) £9.00 Correct!Wrong! Answer: c) £7.50. At the end of the year you would have £157.50 in the savings account compared to £150 at home.
2. You owe £3,000 on a credit card, the interest charged at 17.9% and the minimum repayment each month is 2%. If you just make the minimum payment each month, how long will it take you to pay it off? a) 40 Days b) 40 Weeks c) 40 Months d) 40 YearsCorrect!Wrong! Answer: d) 40 Years. Afraid so. By only paying the minimum payment, which will reduce each month, you end up virtually only paying off the interest, not the original amount. And the interest for this loan would be £6,300 (adapted from MoneySavingExpert.com Teen Cash Class)
3. The term 'inflation' is used to describe the general increase in prices and services. Which one of the following would not contribute to inflation? a) Poor crops, so less food available b) Goods not selling c) Wage increases d) Higher manufacturing costs e.g. gas and electricityCorrect!Wrong! Answer: b) Goods not selling. If demand for a product is low then the cost will usually go down to make it more attractive.
4. What is the favourite item Year 6-10's spend their money on? a) Sports centres b) Pets c) Music d) SweetsCorrect!Wrong! Answer: d) Sweets. 40% of this age group put sweets as their favourite purchase. (SHEU 2007)
5. A computer game normally costs £24.99. Which would be the best buy? a) Buy one get one half price b) 10% discount c) £5 off original price d) Buy three for the price of two?Best Answer!Not the cheapest! Answer: This is a bit more complicated. The cheapest price per game would be answer d) at £16.66 each, but you'd have to spend much more in the first place and there might not be a third one that you really want. Next cheapest would be answer a), they'd cost £18.70 each good option if a friend wants one too. Next cheapest is c) at £19.99 and the then b) at £22.50. So the answer depends on how much cash you have, whether you've got a mate to club together with and if they've got the range to choose from.
6. The average owed by every UK adult is? a) around £30,000 b) around £15,000 c) around £10,000 d) around £5,000 Correct!Wrong! Answer: a) Around £30,000. The actual amount is £29,747 (excluding mortgages - Mar 07)
7. What might happen if you don't meet payments on a secured loan? a) Nothing b) The lender would send you a nice letter saying it was OK c) The lender might ask for the goods back that you bought d) You could go to jailCorrect!Wrong! Answer: The lender might ask for the goods back that you bought. Secured loans are ones which are linked to the borrower's property or other assets (things they own). A mortgage, for example, is a loan that is usually linked to the property that has been bought.
8. The minimum wage for 16 year olds is...? a) £3.40 b) £3.75 c) £4.10 d) £4.50Correct!Wrong! Answer: a) £3.40 As at October 2007.
Start Again
Your final Score is