Borrowing and Lending

Jesse needs $7 for his toy. He only had $4. Jackson has $10 and offers to help him with the toy, if Jesse pays it back. Who is the lender?

• Jackson

• Jesse

• Both Jesse and Jackson

Rick's mom gave him $5 to pay for a drawing book. Rick has to pay his mom back when they get home. Who is the borrower?

• Rick's Mom

• Rick

______________ is money that you borrow and will have to pay back with interest (extra money).

• Savings

• Credit

• Interest

Ms. Alsina dropped her phone in the pool. She didn't have enough money to fix it, so she used her credit card at the store. Who is the lender?

• the credit card company

• the store

If you use a credit card to buy something, you are borrowing money that you must pay back with interest. True or False?

• True

• False

You will have to pay interest when using a credit card. Interest is...

• extra money you pay for borrowing money

• a fee you owe to the lender or credit card company

• both are correct

Which of the following can lend you you money? Choose all that apply.

• banks

• credit card companies

• grocery stores

• parents

The Kim family is going to buy a new house. They can only pay for part of the cost of the house. What can they do?

• They can borrow money from a bank and avoid paying back.

• They can borrow money from a bank with an understanding there is interest to repay.

Lending money to someone means_______________.

• You are stealing money.

• You are paying a fine.

• You are loaning money.

Marcy borrowed $10 dollars from her brother. Her brother made her pay an extra $2 to borrow his money. What is the $2 called?

• interest

• credit card

• savings