Money Sense Quiz 3: Money Concepts

1. Which is a "need"?

Milk

Ice-cream

Coke

Milk is considered a "need" because it is a basic necessity for human survival. It is a rich source of essential nutrients like calcium, protein, and vitamins, which are crucial for maintaining good health. Milk is also commonly consumed by people of all ages and is often recommended by healthcare professionals. Additionally, milk is used in various recipes and as a base for many other food products, making it an essential ingredient in cooking and baking.

Explanation

Milk is considered a "need" because it is a basic necessity for human survival. It is a rich source of essential nutrients like calcium, protein, and vitamins, which are crucial for maintaining good health. Milk is also commonly consumed by people of all ages and is often recommended by healthcare professionals. Additionally, milk is used in various recipes and as a base for many other food products, making it an essential ingredient in cooking and baking.

2. Assuming you have $100, which of the following is an investment?

Spending 2 whole days in the games arcade

Take swimming lessons for 6 weeks

Visit Universal Studios

Taking swimming lessons for 6 weeks is considered an investment because it involves spending money and time to acquire a skill that can provide long-term benefits. By investing in swimming lessons, the individual can improve their swimming abilities, which can lead to increased safety, fitness, and potentially even career opportunities in fields such as lifeguarding or competitive swimming.

Explanation

Taking swimming lessons for 6 weeks is considered an investment because it involves spending money and time to acquire a skill that can provide long-term benefits. By investing in swimming lessons, the individual can improve their swimming abilities, which can lead to increased safety, fitness, and potentially even career opportunities in fields such as lifeguarding or competitive swimming.

3. If I am rich, I should keep all the money I have to myself in case there is a financial crisis in the future. True or false?

True

False

It is false to believe that if someone is rich, they should keep all the money to themselves in case of a future financial crisis. While it is important to have financial security, it is also important to consider the well-being of others and contribute to the overall welfare of society. Sharing wealth through philanthropy or investing in initiatives that benefit others can help create a more equitable and stable future for everyone.

Explanation

It is false to believe that if someone is rich, they should keep all the money to themselves in case of a future financial crisis. While it is important to have financial security, it is also important to consider the well-being of others and contribute to the overall welfare of society. Sharing wealth through philanthropy or investing in initiatives that benefit others can help create a more equitable and stable future for everyone.

4. Which of the following is true?

An iPhone is a "need" because many of friends have it

A handphone may be a "need" for some children, but a "want" for some children

If I want something badly, it is a "need"

This answer is correct because the statement acknowledges that the classification of a handphone as a "need" or a "want" can vary depending on the individual. Some children may consider a handphone a necessity for communication or safety reasons, making it a "need" for them. On the other hand, some children may view a handphone as a desire or luxury item, classifying it as a "want." Therefore, the statement recognizes the subjective nature of categorizing a handphone as either a "need" or a "want" based on personal circumstances and perspectives.

Explanation

This answer is correct because the statement acknowledges that the classification of a handphone as a "need" or a "want" can vary depending on the individual. Some children may consider a handphone a necessity for communication or safety reasons, making it a "need" for them. On the other hand, some children may view a handphone as a desire or luxury item, classifying it as a "want." Therefore, the statement recognizes the subjective nature of categorizing a handphone as either a "need" or a "want" based on personal circumstances and perspectives.

5. Which of the following is true?

Primary school children are too young to learn how to manage money

I should try to eat as little as possible during recess to accumulate more savings in my bank account

After spending to meet my needs, I can use part of leftover money to spend selectively on my "wants"

It is important to prioritize spending on needs such as food, shelter, and clothing before spending on wants or desires. Once the necessary expenses are taken care of, it is reasonable to use a portion of the leftover money to indulge in selective wants or non-essential items. This approach promotes responsible money management and ensures that basic needs are met while allowing for some discretionary spending.

Explanation

It is important to prioritize spending on needs such as food, shelter, and clothing before spending on wants or desires. Once the necessary expenses are taken care of, it is reasonable to use a portion of the leftover money to indulge in selective wants or non-essential items. This approach promotes responsible money management and ensures that basic needs are met while allowing for some discretionary spending.

6. Which is the best value for money?

Plain noodles costing 50¢

Japanese rice set with chicken and vegetables costing $1.20

A small packet of chips costing $1

The Japanese rice set with chicken and vegetables costing $1.20 is the best value for money because it offers a complete meal with protein and vegetables, making it more nutritious and satisfying compared to plain noodles or a small packet of chips. Additionally, the price of $1.20 is reasonable for a meal that includes multiple components.

Explanation

The Japanese rice set with chicken and vegetables costing $1.20 is the best value for money because it offers a complete meal with protein and vegetables, making it more nutritious and satisfying compared to plain noodles or a small packet of chips. Additionally, the price of $1.20 is reasonable for a meal that includes multiple components.

7. The more money I have, the happier I am. True or false?

True

False

The statement "The more money I have, the happier I am" is false. While money can provide a certain level of comfort and security, it does not guarantee happiness. Happiness is subjective and can be influenced by various factors such as relationships, personal fulfillment, and overall well-being. Money alone cannot fulfill these aspects of life and therefore does not directly correlate with happiness.

Explanation

The statement "The more money I have, the happier I am" is false. While money can provide a certain level of comfort and security, it does not guarantee happiness. Happiness is subjective and can be influenced by various factors such as relationships, personal fulfillment, and overall well-being. Money alone cannot fulfill these aspects of life and therefore does not directly correlate with happiness.

8. I should only spend on money on "needs", not "wants".

True

False

This statement contradicts the common belief that one should only spend money on necessities and not on desires. It implies that it is acceptable to spend money on wants as well.

Explanation

This statement contradicts the common belief that one should only spend money on necessities and not on desires. It implies that it is acceptable to spend money on wants as well.