Question 1: Explain what a savings account is and how it can help you manage your money.

Answer: A savings account is a bank account where you can store money securely. It helps you save money over time and often earns interest, which can grow your savings.

Question 2: List three important factors you should consider when choosing a bank or building society account.

Answer: Interest rates, fees and charges, accessibility (such as online banking and ATM access).

Question 3: Describe the difference between needs and wants with two examples of each.

Answer: Needs are essentials for survival or well-being, such as food and a safe place to live. Wants are things that are nice to have but not essential, like a new phone or designer clothes.

Question 4: Imagine you receive a weekly allowance of £10. Create a simple weekly budget that includes saving, spending, and any other expenses.

Answer: Sample budget: Saving £3, Spending £5 on snacks and entertainment, and £2 for emergency or unexpected costs.

Question 5: Draw a pie chart to represent a weekly budget where 40% is saved, 40% is spent on leisure, and 20% is spent on essentials.

Answer: A pie chart divided into three sections: 40% for savings, 40% for leisure activities, and 20% for essentials such as food or transport.

Question 6: What is a credit card, and what are some advantages and disadvantages of using one?

Answer: A credit card allows you to borrow money from the bank up to a certain limit to make purchases. Advantages include convenience and building credit history; disadvantages include potential debt and high interest rates if balances are not paid in full.

Question 7: Describe two ways you can protect yourself from financial scams or fraud online.

Answer: Not sharing personal or banking information with strangers and using strong, unique passwords for online accounts.

Question 8: Sketch a simple flowchart showing the steps you should take if you suspect you have been a victim of financial fraud.

Answer: A correct sketch would include steps such as: Recognize suspicious activity → Contact your bank or financial institution → Report the scam to relevant authorities → Change passwords and monitor accounts.

Question 9: Why is it important to compare prices before making a purchase? Give two reasons.

Answer: To ensure you get the best value for your money and to avoid overpaying for goods or services.

Question 10: Write a short paragraph explaining the concept of 'budgeting' and why it is useful for managing money.

Answer: Budgeting is planning how to spend your money based on your income and expenses. It helps you avoid overspending, save for future needs, and make sure you have enough money for essentials.

Question 11: Sketch a simple example of a piggy bank and label its parts, such as the slot and the body.

Answer: A correct sketch would show a pig-shaped container with a slot on top for inserting coins, and labels indicating the slot and the body of the pig.