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Year 9 Money Knowledge

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Year 9 Money Knowledge

Work through the money scenarios. Show your calculations where you can. Use £ and p in your answers.

Money terms and interest

Understand the words people use when saving, borrowing and planning money.

1.Match each money term to its definition.
  • Budget
  • Loan
  • Interest
  • APR
  • A yearly rate used to compare the cost of borrowing
  • Extra money paid for borrowing or earned from saving
  • A plan for money coming in and going out
  • Money borrowed that must be repaid
2.A savings account has £500 in it and pays simple interest at 3% per year. Which calculation finds the interest earned after 2 years?
  • £500 × 0.03 × 2
  • £500 + 0.03 + 2
  • £500 ÷ 0.03 × 2
  • £500 × 3 × 2
3.Work out the simple interest earned on £500 at 3% per year for 2 years. State the interest only, not the final balance.

Plan a realistic budget

A budget helps you decide what to spend, save and keep available for unexpected costs.

Category

Amount

Savings

£80

Transport

£60

Entertainment

£50

Clothes

£40

Other costs

£170

4.Using the budget table, check that the income is fully allocated. What is the total of savings and spending?
5.Aisha earns £1,200 each month. Her rent is £400, food is £200, travel is £150 and bills are £100. How much remains after these costs?
6.Aisha wants to save £200 of the £350 remaining. How much will she have left for other spending?

Compare costs and make decisions

The cheapest-looking option is not always the best value. Compare the full cost before deciding.

7.A phone costs £600 upfront. An alternative plan charges £30 per month for 24 months. Work out the plan's total cost and how much extra it costs compared with paying upfront.
8.A jacket is reduced from £80 by 25%. Calculate the discount and the sale price.
9.Before taking out a loan, choose the three most useful things to check.
  • The total amount to repay, including interest and fees
  • Whether the repayments fit the budget
  • The APR and how it compares with other offers
  • Whether the advert uses an appealing colour
  • Whether the loan can be ignored if money gets tight
10.Explain why an emergency fund can be useful. Give one example of an unexpected cost it could help cover.

3 printable pages

  • Year 9 Money Knowledge, page 1 of 3: Money terms and interest, Plan a realistic budget

    Page 1

  • Year 9 Money Knowledge, page 2 of 3: Compare costs and make decisions

    Page 2

  • Year 9 Money Knowledge, page 3 of 3: 8. A jacket is reduced from £80 by 25%. Calculate the discount and the sale price.

    Page 3

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