Question 1: |
Lindsay wants to buy a car and has saved $3,000 but the sporty used car Lindsay wants costs $15,000. The car dealer offers to arrange finance for Lindsay. Is this the best option? |
Answer: |
Yes, it's the quickest and simplest way
Not necessarily, you should shop around |
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Question 2: |
Spili is a uni student who lives at home and has a casual job that brings in $250 per week. Spili is planning to go backpacking in Europe for 8 weeks, in 8 months time. The trip will cost $5,800 in total. Spili's mates are paying for the trip purely by using their credit cards. How should Spili pay for his trip? |
Answer: |
Spili should pay by credit card (like his mates) because he needs his spending money now
Spili should save as much as possible now to avoid using credit |
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Question 3: |
Gemma is buying a car and needs insurance. 2 years ago she had a small prang and when filling out her disclosure documents she didn't mention that. Is Gemma taking a big risk? |
Answer: |
Yes, by not providing full disclosure Gemma risks the insurer voiding the policy
No, the accident occurred 2 years ago and insurers aren't interested in 'old news' |
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Question 4: |
Amy replied to an e-mail from her bank asking her to confirm her account details and address. Amy later told her older sister Elise what she had done. Which of Elise's responses was appropriate? |
Answer: |
Elise said that banks often contact you by e-mail to confirm account details and not to worry
Elise told Amy she should never provide account details by e-mail and to contact her bank straight away |
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Question 5: |
Andelys started her first job working full-time as an instructor at Wiglet's Ballet Academy (WBA). WBA provide Andelys with a superannuation choice form that has details of the WBA employer fund. What should she do? |
Answer: |
Nothing. Andelys should go with WBA's employer super fund because it's the simplest option
Andelys should research different super funds to find one that best suits her long-term needs to compare with WBA's employer fund |
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Question 6: |
Maca is in year 11 and works Sunday afternoons at the local fish & chips shop. He has a $50 monthly cap on his phone bill so long as he spends less than $200 in total. He's not locked into a contract, however Maca cannot control his calls and has crept over the $200 mark for the last 3 months. As a result, he now has a $720 credit card debt. What should Maca do? |
Answer: |
Keep using the phone and take on extra shifts at the fish & chips shop to work off the debt
Stop using the phone and get a prepaid phone and continue to work off the debt |
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Question 7: |
Rueben works full-time and has wracked up a $5,000 debt on his credit card, which is now maxed out. He can't control his spending, as his lifestyle costs more than he earns. What should he do? |
Answer: |
Apply for a new credit card with a higher limit
Destroy his credit card and dedicate a set amount out of each pay cheque to reducing his debt |
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Question 8: |
Kathryn is moving out of home for the first time this year, and needs to buy whitegoods and furniture for her apartment. She decides to buy her goods on interest free. The store offers her a limit on an interest free credit card of $4,000. The interest free period lasts for 2 years. After 2 years, the interest rate on the credit card goes up to 30%. How should Kathryn pay off this amount? |
Answer: |
Pay off the minimum monthly amount that the credit provider nominates
Pay off as much as possible each payday until the debt is cleared
Work out the minimum amount she needs to pay to have cleared the debt within the 2 years and organise a direct debit out of her regular account |
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Question 9: |
Coco has just got a new job which pays a higher salary than her old job, but which pays less superannuation. What should Coco do with her increased income? |
Answer: |
Spend up big – she worked hard and deserves some new shoes
Make up the difference in super payments using salary sacrifice and keep a small amount aside for increased spending |
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