Task 2: How would you invest?
20% in cash
25% in fixed interest
50% in property
5% in shares
You should invest your money in more than one way because if something goes wrong in one investment, then you still have other places your money can be stored, as well as gaining money in interest and profit.
- Why do people use banks: There are multiple reasons as to way people woul use banks. People using banks because of the security. Keeping cash in your home isn't always safe. You could be robbed, flooded or you could simply just forget where you put it. But banks will keep it safe. Another reason is because you can use it from anywhere. If you have a bank account, it will be easier to pay bills and budget instead of doing it in person;and finally, banks are good for earning a bit more for juts having you money in the bank with interest.
- How do banks make money from their customers: banks make money from us paying interest when we loan money from the back. If I wanted to loan $5000 from the ban kana I pay it back by paying $34 a week over 4 years, I will also have to pay interest over the time I don't pay it back. They also gain money over credit cards, ATM fees, loan fees and late fees.
- Reasearch how much interest is charged on a credit card with one of the 4 big banks. Research what interest is paid on their savings account. What is the difference between these two rates? Picture down the bottom of the questions
- Why if credit cards charge high interest do people use them: Credit cards are quick, convenient and easy to use. They can be used for online shopping, paying bills, quick paying without hard cash. It's an easy way to use your money without the hassle of varying all you money around in you bag.