Personal Finance Critical Thinking Task

Having It All!

A lesson on personal finance

Spend Smart

​READ these tips about making spending decisions:

1. Plan purchases BEFORE you go to the store. Don’t make impulsive purchases! Planning

and being patient before making a purchase will give you time to gather coupons and let you

wait for the lowest sale price on your item.

2. Be aware of marketing schemes. Know what you want to buy and don’t fall for tricks to

buy unnecessary products.

Open Ended

Barbara made the volleyball team and she wants to celebrate with her friends who are

meeting at the movie theater to see the newest release. She wants to look nice and wants to

get snacks for the show.

How can Barbara spend smart?

What are ways you make smart decisions when

spending your money?

SAVE AND INVEST

READ this vocabulary:

Deposit(s): money put into your bank account

Principal: total amount of money you own and place into a bank or financial institution

Interest: additional money you earn when you leave your principal in a bank or financial

institution; the amount you earn is a percentage of your principal

Open Ended

Analyze the chart.

• How many deposits did Trina make?

• What was her interest percentage?

• How much is Trina’s principal at the

beginning of April?

• How much did Trina make during these

months by keeping her money in the bank?

• If Trina’s money is in the bank, is she

more or less likely to spend it?

STICK TO A BUDGET

​READ this vocabulary:

Income: money received for work or through investments

Expenses: amount of money spent on goods or services; costs

Balance: the amount available

Open Ended

Analyze the chart.

• At the end of July, how much money does Chin

have left? What should he do with this money?

• If Chin’s family goes on vacation one week in

July, would his income still be $80? How will this

impact his budget?

• If Chin wants to buy a pair of jeans that cost $45,

how long must he wait before he can buy them?

• If Chin follows this budget, how much money

can he save for a car after one year?

• If Chin gets hurt and can’t work for two weeks,

how will that impact his budget?

USE CREDIT WISELY

READ this vocabulary:

Credit: the ability to receive goods or services before you pay for them, with the understanding to pay for the goods or services later

Interest Rates: percentage paid on unpaid credit balances

Annual Fee: yearly fee charged by the credit card company for having a credit card institution; the amount you earn is a percentage of your principal

Statement: a monthly summary of the goods and services purchased on a credit card

Minimum payment: the smallest amount of a credit card bill you are required to pay each month

Open Ended

Read the scenario. Did Kyle use credit wisely? Is it possible to use credit wisely? If so, how?

STAY PROTECTED

​READ this vocabulary:

Contract: a legally binding document

Warranty: a written promise from a manufacturer that says that if a product fails during a

specified time, it will be repaired or replaced

Guarantee: a formal promise or assurance (typically in writing) that certain conditions

will be fulfilled, especially that a product will be repaired or replaced if not of a specified

quality and durability

Open Ended

Analyze the Airpods warranty to answer the following questions:

• What is covered?

• How long does warranty coverage last?

• What is not covered?

• How do you get warranty service?

• What must you do to ensure your product remains under warranty?