Saving and Spending Flashcards

(8 cards)

1
Q

Needs vs wants

A

A need is something you require to live and function in your daily lives.
A want is something we desire to improve our quality of life.

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2
Q

Define opportunity cost

A

the loss of the next best alternative when one alternative is chosen.

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3
Q

Role of banks in the economy

A

a bank is a business that wants to make a profit, so it accepts money as savings (deposits) at a lower rate and lends that money at a higher rate

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4
Q

how to calculate simple and compound interest

A

simple interest - prt/100
compound interest - p(1 + r)^t

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5
Q

Basic banking products including savings accounts and credit cards

A

Transaction accounts, deposits, savings, insurance

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6
Q

Methods of preparing a personal budget

A
  1. expenses
  2. income
  3. estimated cash
  4. surplus/deficit
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7
Q

distinguishing between weekly, monthly and quarterly expenses

A

Fortnightly = 2 weeks
Quarterly = 3 months

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8
Q
A
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