Are you a financial force to be reckoned with, or could you do with a refresher course on money matters? Take our quiz below and discover just how well you know your finances!Take the test
You’ll have seen this abbreviation countless times, but do you know what APR actually stands for?
APR can be used to compare different credit and loan offers. APR takes into account not just the interest on the loan but also other charges you have to pay - for example, any arrangement fees or annual usage fees.
If you take out a short-term loan for £500 with an APR of 1300% and pay it back two months later, how much will you pay back in total?
While APR is a useful way to compare the costs of similar products with different providers, it can confuse matters when it comes to working out the total cost of credit borrowed over less than a year. Most short-term lenders, as well as their APR, will show you an example in pounds and pence, to help make the cost of borrowing from them clearer.
In August 2018, the Bank of England increased interest rates in the UK, from 0.5% to 0.75%. If you have a base rate tracker mortgage with a 25 year term and pay £1200 a month, how much does this mean your monthly payments will increase by?
Even a seemingly small percentage rate rise can have a big impact on your finances over the long term. If you’re looking for a mortgage, it’s worth exploring both fixed rate interest and base rate tracker mortgages to work out which is right for you. And, don’t be afraid to change mortgage provider later if you find you’re no longer getting the best deal.
Which of the following options below has an impact on your credit score? (please select the 3 answers that apply).
The correct answers were registering on the electoral roll, numerous credit requests and the number of accounts you have open.
Registering on the electoral roll improves your score as it allows lenders to verify who you are, and where you’re living, and helps to rule out the possibility of fraud.
Having a number of applications for credit in a short period of time on your credit report can have a negative impact on your score. This can signal to lenders that you are in sudden need of credit or maybe struggling with debts.
The number of credit accounts you have open is also a popular credit scoring measure. Credit scoring models also consider how many accounts have balances. Generally, it’s better to have more zero-balance accounts than ones on which you’re carrying a balance.
Saving is challenging for the best of us, at the best of times. What percentage of UK households do you think have less than £500 in savings?
According to think-tank the Royal Society of Arts, 32% of UK workers have less than £500 in their savings. In July 2018 the Treasury Select Committee released a report that called for action to be taken to help hard-pressed households take control of their finances and save for a rainy day. With economic uncertainty ahead, the committee believes that Brits are facing a series of challenges that put “the health and sustainability of their finances under pressure”. However, it’s not all doom and gloom, and there are plenty of ways to squirrel away a little money here and there to kick-start a rainy day fund.
High street banks have been criticised recently for fees they are charging their customers for doing what?
According to consumer association Which?, unauthorised overdraft fees were costing customers hundreds of pounds, with fees which were comparably higher than any other financial product on the market. The Competition and Markets Authority (CMA) has now ordered banks to set a maximum monthly charge (MMC) for unauthorised overdraft fees, in a move to cap the cost of this kind of borrowing.
Which PAYE (Pay as you earn tax) form shows the amount of tax you’ve paid on your salary for the previous financial year?
A P60 is a certificate issued to taxpayers at the end of the tax year. It details taxable income and deductions made by PAYE that year. You should receive one P60 form from each source of employment. You’ll need your P60 to prove how much tax you’ve paid on your salary in order to claim back overpaid tax, to apply for tax credits and as proof of your income if you apply for a loan or a mortgage.
You can find out more about PAYE forms on the .gov website - https://www.gov.uk/paye-forms-p45-p60-p11d
Fortunately, you’re in the right place to brush up on your knowledge!
Spend some time with us exploring Good Vibes to get to grips with all sorts of money matters. Find ways to cut your everyday spending, be inspired by the financial feats of others (could you commute in a canoe?) and learn the lingo to make sure you’re savvy, not stumped, when it comes to getting the most out of your money! Here are some great places to dive in:
You obviously know your stuff and have spent a fair bit of time reading up on financial matters.
Take some time exploring Good Vibes and you’ll be a financial guru in no time! Find ways to cut your everyday spending, be inspired by the financial feats of others (could you commute in a canoe?) and learn the lingo to make sure you’re savvy, not stumped, when it comes to getting the most out of your money! Here are some great places to dive in:
Whether it’s manoeuvring through the world of interest rates or reading up on the financial stories of the day, there’s no getting past you when it comes to money.
If you ever feel like you need to brush up on your knowledge, check out Good Vibes for lots of useful information on money matters and beyond! Find ways to cut your everyday spending, be inspired by the financial feats of others (could you commute in a canoe?) and learn the lingo to make sure you’re savvy, not stumped, when it comes to getting the most out of your money! Here are some great places to dive in:
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
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