financial literacy

Question 1

credit cards

Answer 1

• issued by financial institutions
• allows consumer to buy things and receives a monthly statement to pay back

Question 2

considerations for when getting a credit card

Answer 2

• know the interest rates
• only buy what you can afford
• avoid impulse buying
• have low credit card limit

Question 3

credit rating

Answer 3

• judgment of how likely you are to pay money back if you borrow it or buy things on credit

Question 4

super annuation

Answer 4

• money put away over your working life for retirement
• your employer pays a percentage (11.5%) into your super account from your pay check

Question 5

buy now, pay later (afterpay)

Answer 5

• online method that allows you to pay for your online purchases after receiving them

Question 6

pros and cons of afterpay

Answer 6

• PRO- immediate use, free & interest free terms
• CONS- encourages impulse buying,

Question 7

consumer rights

Answer 7

• a consumer is entitled to have goods replaced, repaired or money refunded if there is a major problem with the goods or service, illegal for businesses not to do this

Question 8

secure websites

Answer 8

• ‘https’
• padlock symbol

Question 9

identity theft

Answer 9

• type of fraud that involves stealing money or gaining other benefits by pretending to be someone else

Question 10

scams

Answer 10

• are traps to dishonestly take someones money
• scams like; charity scams, computer malfunctions etc

Question 11

investments & online scams

Answer 11

• these scams offer the investor a rare opportunity to make money fast
• scams like; emails asking for bank details getting sent from ‘banks’, phone call asking for personal info etc

Question 12

avoid scams

Answer 12

• be suspicious, cautious, patient, alert, and wise