Money Management

Advantages and disadvantages of credit

• Advantages
• Immediate use of goods
• Necessary for large items e.g. houses
• Good for economy
• Avoid s carrying large sums of money
• Avoids risk of theft
• Interest-free if credit bill paid on time
• Can borrow more over time if you build up good credit rating

• Disadvantages
• Interest charged –
• goods more expensive
• Temptation to overspend
• Goods repossessed if
• repayments not made
• Could lead to serious debts

Household Filing System

• Place for bills, receipts, guarantees, school report, bank statements, etc
• Compare past and present bills
• Monitor use of fuel & energy
• Use past bills to create next budget
• Check bank statements & saving accounts