Financial Goals
15 Grade 7 Pre-Technical Studies questions on Financial Goals, with worked marking schemes. 15 questions are available on this topic in full.
Question 1
1 markSaving KSh 20 every week to buy a storybook by the end of the month is an example of a:
A. Fixed government tax
B. Long-term financial goal
C. Short-term financial goal
D. Business loan
(1 mark)
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6 marksExplain three benefits of setting and following financial goals for a young person.
(6 marks)
Marking scheme
Any 3 explained (2 marks each): Encourages saving - the person puts money aside regularly to meet the goal; Promotes wise/disciplined spending - reduces wasteful or impulse spending; Helps meet future needs/emergencies - money is available when needed; Builds responsibility/good money habits early; Gives direction/motivation - the person knows what they are working towards. Award 1 mark for the benefit, 1 for the explanation.
Question 3
6 marksAfter making some profit from her juice business, Mary wants to plan how to use her money wisely instead of spending it all at once.
(a) Explain what is meant by a financial goal. (2 marks)
(b) Differentiate between a short-term financial goal and a long-term financial goal, giving one example of each. (4 marks)
(6 marks)
Marking scheme
(a) A financial goal is a specific target that a person sets concerning how they intend to earn, save, spend or invest their money within a certain period of time. (2 marks) (b) Differentiation (2 marks each): - A short-term financial goal is one that can be achieved within a short period, usually within a year. Example: saving to buy a school bag or more fruit for the business. - A long-term financial goal is one that takes a longer period (more than one year) to achieve. Example: saving to buy a refrigerator for the business or to pay for further training.
Question 4
1 markA learner plans to save money over the next two years to buy a laptop for secondary school. This is an example of a:
A. Spending habit
B. Long-term financial goal
C. Bank loan
D. Short-term financial goal
(1 mark)
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1 markA learner wants to buy a calculator costing 800 shillings in two months and decides to save 100 shillings each week from pocket money. This plan is an example of setting what?
A. A financial goal
B. A workshop hazard
C. A drawing convention
D. An input device
(1 mark)
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4 marks(a) Differentiate between a short-term and a long-term financial goal.
(b) Give one example of each.
(4 marks)
Marking scheme
(a) A short-term financial goal is achieved within a short period (e.g. days, weeks or a few months), while a long-term financial goal takes a long period (e.g. a year or more) to achieve (2 marks). (b) Short-term example (1 mark): saving to buy a book/uniform this month. Long-term example (1 mark): saving for a laptop/school fees over years.
Question 7
1 markPeter receives KSh 100 pocket money each week. If he wants to buy a football costing KSh 800, which practice will best help him reach this goal?
A. Ignoring the goal and buying nothing
B. Lending all the money to friends
C. Spending all the money on snacks weekly
D. Setting aside part of the money as savings each week
(1 mark)
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Create a free account to see itQuestion 8
1 markWhich of the following is the BEST reason for a learner to set financial goals?
A. To use money wisely and avoid wasteful spending
B. To avoid ever saving money
C. To spend all the money immediately
D. To borrow more money from friends
(1 mark)
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Create a free account to see itQuestion 9
1 markA financial goal is best described as:
A. Money borrowed from a bank
B. A tax paid to the government
C. A target a person plans to achieve with their money over a period of time
D. The daily spending of money without a plan
(1 mark)
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Create a free account to see itQuestion 10
4 marksMary wants to save KSh 1,200 in six months to buy a school bag.
(a) Calculate how much she must save each month.
(b) State one way she can raise this money.
(4 marks)
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6 marksUsing the SMART framework, explain what makes a financial goal effective. State any three of the SMART elements with a short explanation of each.
(6 marks)
Marking scheme
Any 3 elements explained (2 marks each): Specific - the goal is clear and well defined; Measurable - the progress and amount can be tracked/measured; Achievable/Attainable - the goal is realistic given the resources; Relevant - the goal matters/is worthwhile to the person; Time-bound - the goal has a set deadline/time frame. Award 1 mark for naming the element, 1 for a correct explanation.
Question 12
1 markA learner wants to buy a bicycle in six months and decides to save part of their pocket money each week. This plan is an example of setting a:
A. Financial goal, because it is a target to be achieved with money over time
B. Production unit, because it makes goods for sale
C. Safety rule, because it protects against accidents
D. Drawing convention, because it follows technical rules
(1 mark)
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3 marksState three factors a learner should consider when setting a financial goal.
(3 marks)
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1 markA good financial goal should be SMART. In this context, the letter 'M' stands for:
A. Manual
B. Marketable
C. Money
D. Measurable
(1 mark)
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Create a free account to see itQuestion 15
1 markWhich of the following is a benefit of saving money towards a financial goal?
A. It reduces the value of the goal
B. It makes spending uncontrolled
C. It removes the need to plan
D. It helps a person meet future needs and handle emergencies
(1 mark)
Marking scheme for this question
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