Money and Resource Management

Question 1

Define “Needs”.

Answer 1

Needs are things that we cannot live without. They are the basic requirements such as food, clothing and shelter.

Question 2

Define “Wants”.

Answer 2

Wants are things that we desire / wish for but may not actually need. We can still live without having them.

Question 3

Give some examples of wants.

Answer 3

Designer clothes, holidays abroad and jewellery.

Question 4

State the difference between needs and wants.

Answer 4

Needs are our basic requirements and we cannot survive without them. We can however still survive / live comfortably without the things that we want.

Question 5

How can we find out if an item is a need or want?

Answer 5

By answering yes to at least one of the following questions, the item is probably a want.

1. Do I already have enough of the item?
2. Am I buying the item because it is branded?
3. Can I find something cheaper?
4. If I don’t have it, will I be able to live without it?

Question 6

Why is it important to understand the relationship between our needs and wants?

Answer 6

Yes, in order that we can learn to find the right balance between them.

Question 7

How does a person decide whether something is a need or a want?

Answer 7

Based on his / her current expectations.

Question 8

Give an example of a need.

Answer 8

When my pen runs out of ink, a new pen or a pen refill is a need because I cannot do my work without it.

Question 9

Give an example of a want.

Answer 9

If I already have three pens, another pen is now a want. I might just want more pens, but I can do without them.

Question 10

Why is it important for us to make smart consumer choices?

Answer 10

When shopping, consumers may have to make a choice between needs and wants because they do not have enough money to buy everything.

Question 11

What does making smart consumer choices require?

Answer 11

The use of good decision making skills.

Question 12

Why are good decision making skills important?

Answer 12

These skills can help us manage the use of our money more effectively.

Question 13

Describe the decision making process.

Answer 13

1. State the problem
2. Consider possible solutions to the problem
3. Think of good and bad results (i.e. advantages and disadvantages) of each solution.
4. Choose the most suitable solution.
5. Evaluation your decision.

Question 14

What does a consumer need to know after making a decision on what to buy?

Answer 14

How much he / she has and how much he / she is going to spend.

Question 15

How can one become a wise consumer?

Answer 15

By knowing how to plan a budget.

Question 16

Define “budgeting”.

Answer 16

Budgeting refers to the process of preparing a spending plan.

Question 17

Why is budget important?

Answer 17

It can help us manage our money well and it can be done for different purposes.

Question 18

How many types of budgets are there?

Answer 18

1. Personal budget

2. Family budget

Question 19

What is a personal budget?

Answer 19

It is a plan that allocates personal income to provide for expenses and savings.

Question 20

What is ‘income’?

Answer 20

Income refers to allowance and money earned / received.

Question 21

What is the purpose of having a personal budget?

Answer 21

To keep us from overspending.

Question 22

What is a family budget?

Answer 22

The total income from all members of the family used to provide for the total expenses and savings of all members of the family.

Question 23

What are ‘expenses’?

Answer 23

The money spent on things such as paying for food, books and transport.

Question 24

How does one plan his budget?

Answer 24

By knowing the details of his income and expenses.

Question 25

What do I need to consider in order to ensure a well-planned budget? or
How can I get my budget right?

Answer 25

By considering the following factors:

1. My spending habits
2. My reasons for spending
3. The amount of money I have for spending (i.e. knowing where my money comes from and knowing how much money I have)
4. Ways to prevent overspending
5. The need to review my budget (i.e. reviewing my budget regularly as it could change from month to month)

Question 26

What are some tips to help me keep to my budget?

Answer 26

1. Make a shopping list before I go shopping. This will prevent me from making unnecessary purchases.
2. Remember to compare prices, make my purchases during sales, use discount coupons and / or buy in bulk (big quantities) to get better deals.
3. Spend within my means. Buy only when I can afford it to avoid overspending and going into debt.

Question 27

What happens when I spend according to my budget?

Answer 27

I will not spend more than I have.

Question 28

What should I do if something unexpected occurs and I need more money urgently? Would I be able to handle such emergencies?

Answer 28

Dig into my savings. Yes, if I have savings.

Question 29

What are ‘savings’?

Answer 29

The money we set aside.

Question 30

What can savings be used for?

Answer 30

To pay for the expenses that we may incur. These expenses comprise both paid and unpaid expenses, such as saving up for future education and emergencies.

Question 31

What are the reasons for having savings?

Answer 31

1. So that we are prepared for unexpected emergencies.

Question 32

Why should we spend money wisely and carefully within our means?

Answer 32

So that we are prepared for unexpected emergencies.

Question 33

How much of my allowance should I save?

Answer 33

10%.

Question 34

How can I increase my savings?

Answer 34

By decreasing / cutting down on my expenses or by spending less.

Question 35

How can I prevent unnecessary spending.

Answer 35

By applying the 3Rs to manage resources, i.e. reduce, reuse and recycle.

Question 36

List three ways of preventing unnecessary spending.

Answer 36

1. Reduce
2. Reuse
3. Recycle

Question 37

Give some ways of reducing the amount of waste I produce daily.

Answer 37

1. When I buy takeaway food, I can bring my own reusable container instead of disposable ones.
2. Switch off the lights and fans when not in use to save energy.
3. Turn off the tap when I brush my teeth to save water.
4. Do not waste paper. Print out only what I need and use both sides of the paper.
5. Learn how to care and maintain my personal products to prevent unnecessary spending, e.g. care and maintenance of my clothes.

Question 38

Give some ways of reusing and not throwing everything away.

Answer 38

1. Find ways to make use of old things.
2. Donate old items, such as clothes, toys and furniture to charitable organisations.
3. Reuse gift-wrapping paper.
4. Store food in reusable plastic containers.

Question 39

Give some ways of recycling to help protect the environment.

Answer 39

1. Use only products that contain recycled materials.

2. Dispose of recyclable materials into recycle bins located in my school or near my home.