Financial Literacy 4

To put away money for future planned or unplanned spending.

• credit

• save

• spend

• donate

To borrow money to make a large purchase.

• credit

• save

• spend

• donate

To use money to purchase things you want and need.

• credit

• save

• spend

• donate

To give away money or items to help others.

• credit

• save

• spend

• donate

Leslie borrowed $500 to buy new tires for her car. Which of the following statements is true?

• Leslie will not have to pay back any of the money.

• Leslie will only need to pay back some of the money.

• Leslie will have to pay back all of the money plus interest.

• Leslie should never borrow money for any reason.

Sandy borrowed $5,000 from the bank to purchase new flooring for her house. After a year she had paid back $5,750 to the bank. Why did Sandy pay the bank more money than she borrowed?

• Sandy made a mistake when counting how much money she owed.

• The extra money Sandy paid back was interest that she owed the bank.

• Sandy forgot how much she borrowed so she just kept paying.

• The bank was nice to Sandy so she thought she would give them a gift for helping.

When you use credit to borrow money you have to pay it all back plus.....

• taxes.

• interest.

• scarcity.

• candy.

Which of the following is a reason someone might want to save money?

• To help pay for future expenses like college.

• To make a large purchase in the future like buying a house.

• To have money put away for emergencies.

• All of these are good reasons to save money.

Which of the following is a SMART financial choice?

• Spending all the money you earn on games and candy.

• Buying all the things you want first, before paying any bills.

• Saving some of your money each month for the future and emergencies.

• Giving all of your money away to help others.

Mr. Reese gives $20 to his church each week to help others in need. This is an example of....

• saving

• spending

• donating

• earning