Under 25s quiz

Under 25s iconTake this quiz to see if you've got the money smarts. Test your knowledge.

There are ten questions. Select an answer to receive feedback. Your score is calculated at the end. 

Clock Estimated time: 5 mins

passportsSpiro is a uni student who lives at home and has a casual job that brings in $250 per week. He is planning to go backpacking in Europe for 8 weeks in 8 months' time. The trip will cost $5,800 in total. Spiro's mates are using their credit cards to pay for the trip. How should Spiro pay for his trip?

  • Spiro should pay with a credit card
  • Spiro should save as much as possible now
  • Spiro should get a personal loan from a bank.

That's right! If Spiro can save around $180 a week before he goes, he won't need to use any credit and can pay for his trip upfront. Otherwise, with the high interest rate charged on personal loans and credit card debts he could be paying off his holiday for years after he returns.

See saving for a holiday  and using credit for more information.

That's incorrect. Spiro will be charged a high interest rate if he uses his credit card or gets a personal loan. This means he could be paying off his travel debt for many years after his trip ends.

However if he saves around $180 per week before he goes, he won't need to use any credit and can pay for his trip upfront.

See saving for a holiday  and using credit for more information.

car expensiveThe greatest running cost of a new car is:

  • Petrol and servicing
  • Car depreciation
  • Registration
  • Insurance

That's right. Car depreciation is actually the leading cost of owning your own car.

See ongoing car costs for more information.

That's incorrect. While other expenses are continuous and ongoing, the loss in value of your car is actually the greatest cost associated with owning a car.

See ongoing car costs for more information.

calculator and coinsAndelys started her first job working full-time as an instructor at Wiglet's Ballet Academy (WBA). WBA provided Andelys with a superannuation choice form that has details of their default employer fund. What action should she take?

  • Andelys should go with the employer super fund
  • Andelys should consider different super funds

That's right. WBA's employer super fund may suit Andelys but she won't know this for sure until she compares it with other funds.

See choosing a super fund  and getting paid for more information.

Not necessarily. WBA's employer super fund may suit Andelys but she won't know this for sure until she compares it with other funds.

See choosing a super fund and  types of super funds  for tips on what to look for in a super fund.

mobile phoneZane is 20 and has a $50 monthly cap on his phone bill. However, he has been making a lot more calls than his plan allows and now has a $720 bill to pay. What should Zane do?

  • Change mobile providers and get a credit card to cover the debt
  • Reduce his phone use and pay off the debt as soon as possible

That's right! Zane should pay off the debt as soon as possible by negotiating a payment plan with his phone company. For more information see dealing with phone problems.

It might also be worthwhile for Zane to review his phone plan needs and perhaps move to a new plan. For more information on what to look for in a plan see choosing a plan.

That's not right. Zane might have to pay an early termination fee of over $400 as well as the cost of the new mobile contract. Getting a credit card will only land him in more debt.

He should instead negotiate a payment plan with his phone company and pay off the debt as soon as possible. For more information see dealing with phone problems.

It might also be worthwhile for Zane to review his phone plan needs and perhaps move to a new plan. For more information on what to look for in a plan see choosing a plan .

credit cardsReuben works full-time and has racked up a $5,000 debt on his credit card, which is now maxed out. What is the next step Reuben should take?

  • Apply for a new credit card with a higher limit
  • Close his credit card and vow to never get in that much debt again
  • Close his credit card and put aside a set amount out of each pay cheque to pay off his debt

That's right! The quicker he can pay off his debt, the less interest he will be charged. Reuben should also reduce the limit on his credit card after he pays off his debt.

If you have credit card debt, use our credit card calculator to work out how long it would take you to pay it off.

Find out more about making repayments .

Not quite. To avoid the situation getting further out of hand Reuben should put aside a set amount of each pay until the debt is paid off.

Obtaining a higher credit limit will only make the problem worse for Reuben and vowing to never get in that much debt again won't help his current situation either. If Reuben were to choose either of these options he will continue to be charged interest on his outstanding debt and even interest on that interest if he falls behind on payments.

If you have credit card debt, use our credit card calculator to work out how long it would take you to pay it off.

Find out more about making repayments

toaster

Kathryn is moving out of home for the first time and needs to buy whitegoods and furniture for her apartment. She decides to buy her goods with an interest-free deal. The store offers her a $4,000 limit on an interest-free credit card. The interest-free period lasts for 2 years. After this, the interest rate on the credit card goes up to 30%. How should Kathryn pay off her debt?

  • Pay the minimum monthly amount that the credit provider nominates
  • Use the credit card to buy other things she needs and put off paying for all of the goods until the 2 year period ends.
  • Work out the minimum amount she needs to pay to clear the debt within 2 years and organise a direct debit out of her regular account

That's incorrect. Kathryn should work out the minimum amount that she needs to pay in order to clear the debt in the interest free period and organise a direct debit.

The minimum monthly amount the credit provider nominates may not pay off the entire debt within 2 years. Further, extra items she buys with the card may not be interest-free so Kathryn should try to avoid using the credit card for any other purchases.

See interest-free deals for more information.

This is a good solution, as long as Kathryn is certain these monthly payments will cover the whole debt before the end of the 2- year period. This means she won't have to pay interest on any amount owning at the end of the interest-free period.

Further, extra items she buys with the card may not be interest-free so Kathryn should try to avoid using the credit card for any other purchases. See interest-free deals for more information.

book-stack-red

Marko is a uni student. He lost his casual job at the bookshop because he was always late. He has no money to pay the rent for his shared apartment and his two flat mates are getting angry. What should Marko do?

  • Approach student services at uni and apply for an interest-free student loan until he finds a new job
  • Ask his flat mates to cover his costs for a few weeks until he finds a new job


That's not a good option if things don't pick up for Marko. He should approach student services and apply for an interest-free loan of up to $1,500 until he finds another job. He should also contact his uni counselling service and careers office as they might be able to help him find a new job.

See studying and no or low interest loans  for more information.

That's right! Many universities offer interest-free loans of up to $1,500 to help students in need. It's probably best to avoid borrowing money from your friends. Marko should also contact his uni counselling service and careers office as they might be able to help him find a new job.

See studying and no or low interest loans for more information.

piggybank-with-coin-in-topJustine is 19 and earning about $300 a week working at the local pizza joint to support her uni lifestyle. She is paid weekly but notices that she hasn't been paid any super. Is Justine entitled to super?

  • No, she doesn't earn enough money to get super
  • Yes, she is entitled to super
  • No, she is not old enough to get super

That's right! Justine should approach her boss about being paid super. If Justine was under 18 she could still be paid super as long as she worked more than 30 hours a week. She should contact the Australian Taxation Office or her union for advice.

To find out more see getting paid and how super works.

That's incorrect. Justine is entitled to super because she earns more than $450 per month and is over 18. If Justine was under 18 she could still be paid super as long as she worked more than 30 hours a week. Justine should approach her boss about being paid super. She should contact the Australian Taxation Office or her union for advice

To find out more see getting paid and how super works.

car expensiveRobert and his sister have just bought cars, will their gender affect the premiums that they are charged?

  • Yes, gender does affect insurance premiums
  • No, gender doesn't affect premiums.

That's right. Your insurance premium is calculated based on a number of factors, one of which being the age and gender of the owners and registered drivers. See your product disclosure statement for the other factors used in this calculation.

See car insurance for young drivers for more information.

Not quite right. The insurance premium that you pay is calculated on a number of factors, one of which is the age and gender of the owners and registered drivers. See your product disclosure statement for the other factors used in this calculation.

See car insurance for young drivers for more information.

piggybank graduatingLucy has started work and has a HELP debt of $25,000. She also has a credit card debt of $1,000. She wants to put aside some of her weekly pay to clear off her debts. Which should she pay off first?

  • The credit card debt
  • The HELP debt

That's right. Credit cards charge a high rate of interest so it's a good idea to pay off these debts as soon as possible. See smart ways to use your credit card for more information.

Lucy will be required to start repaying her HELP debt through the tax system when she reaches the compulsory repayment threshold. If she would like to pay more than this automatic deduction she is able to and this will reduce her HELP debt. For more information see paying off your uni debt.

That's incorrect. Credit cards charge a high rate of interest so it's a good idea to pay off these debts as soon as possible. See smart ways to use your credit card for more information.

Lucy will be required to start repaying her HELP debt through the tax system when she reaches the compulsory repayment threshold. If she would like to pay more than this automatic deduction she is able to and this will reduce her HELP debt.For more information see paying off your uni debt.


Last updated: 26 Jul 2016