Borrowing and Lending

Front

What is the extra money you pay for borrowing money called?

Back

Interest

Front

What is money that you borrow and will have to pay back with interest?

Back

Credit

Front

What can a family do if they can only pay for part of the cost of a house?

Back

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

Front

What do you have to pay when using a credit card?

Back

Interest, which is extra money you pay for borrowing money.

Front

What does lending money mean?

Back

You are loaning money.

Front

If you borrow $10 and pay back $12, what is the extra $2 called?

Back

Interest

Front

What is a bank?

Back

A place where you can borrow money or keep your savings safe.

Front

What is a loan?

Back

Money that is borrowed and must be paid back.

Front

What happens if you don't pay back a loan?

Back

You may have to pay extra fees or lose your ability to borrow money in the future.

Front

What is a credit card?

Back

A card that allows you to borrow money to make purchases.