T13 - 1

Question 1

Define:

Personal savings

Answer 1

Personal savings is the money you keepfor emergencies of the future.

Question 2

Define:

Investment

Answer 2

Investment:

• the purchase of property or shares
• money saved in the bank in order to earn more money (interest)

Question 3

Give 2 reasons why people struggle to save money.

Answer 3

1. The high cost of living
2. Unlimited wants

Question 4

List 2 reasons why it is important for people to save money.

Answer 4

1. In case of emergency.
2. Saving can make it possible to invest and get a better return on their money.

Question 5

Name 3 types of investment products that a person can invest in.

Answer 5

1. Savings accounts such as a fixed deposit.
2. Property that can be rented out.
3. Shares in businesses.

Question 6

List 5 reasons for saving money.

Answer 6

1. To buy expensive items in the future
2. For a holiday
3. For children’s education
4. For emergencies
5. To make more money (earning interest)