Personal Finance Exam Revision: Investing, Financial Management, Insurance,

Borrowing.
Activity One: Dice-Game:
Instructions:
In pairs, answer a series of questions. Each section, you have five minutes to answer
all the questions. We will then discuss the answers. At the end of marking the
answers, for each answer you girls get correct, roll the dice and tally up your points
based on the number you rolled on the dice (e.g: you rolled six, you get six points).
Good Luck, Girls.
Rules:
1. Timer is set at four minutes. If you girls beat the timer, you get an extra roll of
the dice.
2. Each correct answer equals to one roll of the dice
3. Be honest with the number you roll
4. Have fun
Section One: Investing
Miss. Investing Ingham wants to know more information about investing. She comes
to you for more information about investing and wants to know the following
information:
1. The four main reasons why people decide to invest. Provide an example
for each of the four main reasons.

Extra income

Saving for a rainy day

Saving for a major purchase

Investing for retirement

2. What is the lowest risk/lowest investment option? Why?

Bank less risk involved you are saving your own money
low risk of losing money.

3. What is the highest risk/highest investment options? Why?

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Shares: It fluctuates highest risk involved company may

not make profits you lose your money all dependent on
the market and market always fluctuates/always changing

4. What happens when you buy a share? How do you receive income from
that share?

When you buy a share, you own some of that share. Any
profit received from that company/share is then provided to
you in the form of dividends.

Section Two: Financial Management

You go on a holiday and you overuse your credit card. You are now in financial
hardship and have difficulties with managing your finance.
1. Explain two consequences of misusing your credit and having poor
financial management. Provide examples.

(Debt collectors + Bankruptcy)

2. Analyse two strategies to solve your financial problems?

(advise your lenders, professional advice,

payment plan)

3. What is a budget? How will it help with financial management?

Budget it list of income and expenditure. IT

helps you with financial management so youre
aware of your financial situation?

o
4. To manage your finance in the future. Who and where can you go to for
financial advice? Discuss three of these financial sources and how they
will help you manage your finances.

family + friends; money sections in newspapers;

investment books and magazines; seminars
about money e.g ASX based ones; financial
planner or adviser.

Section Three: Insurance

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List the four different types of insurance available. For TWO of those insurances
types, write a four-sentence paragraph, which a consumer would benefit from having
that insurance. Your paragraph must include:
The name of an individual/consumer
Age of the individual/consumer
When he/she registered for that insurance type
Why he/she registered for that insurance type
How long he/she have been with that insurance type

What does the insurance cover for the individual/consumer

Get (Three sets of (Ss) to discuss which insurances they included.

Section Four: Borrowing

Miss. Barbara Borrowing is going on a holiday to Hawaii. She wants to know more
information about borrowing. She specifically wants to know the following:
1. What is the price attached to borrowing? What does she need to pay
when she borrows?
o

Loan Principla (amount borrowed)+ Interest is

added to borrowing.

2. What types of interest rates may she receive? What is the difference
between fixed and variable rates?
o

Fixed Rate: Fixed = Set = The rate doesnt change

at all

Variable Rate: Variable = Varied = Lender can

change the rate at any time .

3. Explain three types of loans that banks offer her? Provide an example of
those three types of loans from banks.

Property/Mortgage Loan (for houses)

Personal loans (travel, cars, boats)

Business loans

4. Three primary things Barbara Borrowing needs to worry about include

interest, loan repayments (cost and time) and consequences of not been
able to pay repayments. Explain why these are three important things
she needs to know.

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Total Points (Section Four):

Total Points (All Four Sections):

Activity Two: Kahoot: Investing, Financial Management, Insurance, Borrowing.

Game Pin:
Score from Kahoot:
Areas need to improve on:
Multiple Choice: 20 of them:
The higher the risk, the higher the . . . . . ?
a. Loss
b. Share
c. Dividend
d. Return
What is life insurance?
a. Throughout your working life, you receive insurance as a worker
b. It covers the whole of your life or a limited time
c. It provides a payout figure to a nominate person in the event of your death
d. Answer B+C
What is a mortgage loan?
a. An amount of money borrowed from your shares that has property involved
b. An amount of money borrowed from banks to pay your rent to owners of a
home
c. An amount of money borrowed from a bank, usually to purchase
property
d. An amount that the bank provides to shareholders
One of the reasons we invest is to save for a major purchase. For example, a house?
True or False?
a. False
b. True
The interest people receive from saving is less than interest when they borrow. True
or False?
a. True
b. False
There is a marketplace where public companies are listed and their shares are open
for trade. What is the marketplace called?
a.
b.
c.
d.

Shareholder Headquarters
Australian Share Exchange
Australian Securities Exchange
Australian Stock Securities Exchange

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There are many factors that impact your ability to get a loan. This includes if you
have a stable job, your income details, previous credit history and various other
factors. True or False?
True
False
What is a budget?
A statement of your income and expenditure over a period of time
A statement of only your income
A statement of only your expenditure that you have
A statement used only by businesses
When you borrow money, there is price attached to borrowing. What is the word for
the money that is borrowed?
a.
b.
c.
d.

Loan Principal
Loan Amount
Interest
Exchange rate

Banks are the most secure of all investment options as there is low risk of lising
money in a bank account. True or False?
a. True
b. False
If you want information on how to manage finances. You can use the help from family
and friends information provided at seminars (e.g: those operated by Australian Stock
Exchange), financial advisers and investment books and magazines. Which of these
are the least reliable?
Family and Friends
Informational Seminars about finances
Financial Advisers
Investment books and magazines
If you have numerous debts and you roll all your debts into the one debt. What is this
called?
Debt consolidation
Debt rolling
Debt accumulation
Debt Roll-Over
If Miss. Carly Car wanted to borrow money from a car. Would she get a loan from a
merchant bank or from a finance company?

Finance company
Merchant company (only for large businesses)

What is a premium?
The amount you pay to receive less interest
The amount you pay to be covered by insurance
The amount you pay to invest in shares
The additional charge you pay to receive a bank loan

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What is the main role of debt collectors?

To intimidate and harass those who owe money
To pursue the borrower for the money owing to a lender
To visit your home and continuously ask for your money
When the borrower hires the services of debt collectors to collect their money
What is superannuation?
To put money aside for when you retire
A form of investment
Money that comes from contributions made into your super fund by your
employer
All of the above

Activity Three: Individual Written Task:

Instructions:
Create a story about an individual named, Freda Finance. You must include the
following information about Freda Finance:

One type of investment she will invest in.

One strategy to manage her finances.
One insurance type she can get and why she would get that?
If she was to borrow, what does she need to be aware of ?

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Story about Freda Finance:

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Final Task: Self-Evaluation:
From this revision lesson:
1. What is your strongest area from today?

2. What areas do you need to focus on from today?

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For the areas that you need improvement on. Write notes for these areas ensuring
that you understand the content fully and then write notes in your own words.

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