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Summaries · Grade 7 EMS › Saving, banks and credit
Free summary · Grade 7 EMS

Saving, banks and credit

Saving goals, banks and community savings schemes, interest, and the pros and cons of credit. Read one part at a time and tap “I know this”. Then test yourself in the quiz.

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Saving

Saving gets you ready for emergencies and goals. Pay yourself first: save as soon as you are paid. Save R50 a month, and after a year you have R600 (before interest). A bank is safer than home: safe from theft, and you earn interest, because the bank lends your savings out at higher interest.

  • To open a savings account: ID and proof of address.
  • Compare bank fees: monthly fees can eat up small savings.
  • Never tell anyone your PIN.
Save first, then buy.
Save first, then buy.
Tap when you could tell someone without looking.

Credit

AdvantageDisadvantage
You get it now and pay over timeInterest makes the item cost more in total
Rule

Cash R4 000, or 12 × R400 = R4 800 on credit. Credit costs R800 more.

Responsible borrowing: borrow only what you can repay.

Tap when you could tell someone without looking.

Banks and investments

  • A bank statement lists money in and out.
  • The first banks grew from goldsmiths who kept gold safe and lent some out.
  • An investment puts money where it can grow.
Tap when you could tell someone without looking.

Remember this and test yourself

Remember this: your summary
  • Short-term: school shoes in two months. Long-term: studying after school.
  • A stokvel is a group that saves together and pays out to members in turn. Risk: the money may not be safe.
  • Credit: buy now, pay later; the interest makes it cost more (R4 000 cash, or 12 × R400 = R4 800 on credit: R800 more).
  • Interest: R1 000 at 5% for a year = R50.
  • A mashonisa (loan shark) is an unregistered lender with sky-high interest. Borrow only what you can repay.

Write these points in your book. Read them again the night before the test.

Memory trick

Interest is a see-saw: on savings it lifts you up, on debt it pushes you down.

Flash cards · Tap to turn over

Important words

First say what the word means, then turn the card over.

Test yourself · Part 2

True or false?

Read the question and the answer. Is the answer right? Tap True or False.

    Now the real quiz!

    The quiz has many more questions on this topic. Every question shows straight away whether you are right and explains why.

    Take the quiz: Saving, banks and credit
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    For parents
    • Read one part together and ask your child to tell it back in their own words.
    • The ticks (“I know this”) are saved on this device only. We never ask for names or emails.

    Follows CAPS for Grade 7 Economic and Management Sciences (EMS). Always check your teacher’s notes and textbook too.

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