Financial Literacy-3rd Grade

Front

What is a loan?

Back

A loan is when you borrow money from a bank to buy something for which you do not have enough money. You have to pay back extra money called interest.

Front

How much interest did Sally pay for her TV?

Back

Sally paid $100 in interest for her TV.

Front

What is savings?

Back

Savings is money a person puts aside, usually in a bank, to spend in the future.

Front

What does it mean to buy something on credit?

Back

Buying something on credit means you are borrowing money to make a purchase, and you will have to pay it back with interest.

Front

What is interest?

Back

Interest is extra money you pay when you borrow money as a loan, or money you can earn for saving money in the bank.

Front

What is income?

Back

Income is the money you earn from working or other sources.

Front

What is spending?

Back

Spending is using money to buy goods or services.

Front

What is a credit card?

Back

A credit card is a card that allows you to borrow money to make purchases, which you must pay back later.

Front

What is a bank?

Back

A bank is a place where people can save money, borrow money, and manage their finances.

Front

What does it mean to repay a loan?

Back

Repaying a loan means giving back the money you borrowed, usually with extra interest.