Financial Literacy-3rd Grade

__________ is using money to buy goods including food or clothes, or services such as a visit to the doctor.

• interest
• saving
• spending
• loans

__________ is extra money you pay when you borrow money as a loan; sometimes this is also money you can receive for saving money in the bank.

• savings
• spending
• loans
• interest

When you buy something on ______, you are actually borrowing money, and you will have to pay it back with interest.

• savings
• debit
• credit
• income

This is when you borrow money from a bank to buy something for which you do not have enough money.  You have to pay back interest, or extra money, to the bank. 

• income
• spending
• loan
• resources

___________ are things used to produce goods and services.  Some examples of natural ones that occur in nature are trees, clean water, soil, oil, and gas.

• spending
• resources
• loans
• savings

Carlos helped his father build a new house for a neighbor.  Carlos received $100 for helping his father.  What could you say about the $100 Carlos received from his father?

• The $100 is income.
• The $100 is a loan.
• The $100 is spending.
• The $100 is credit.

Paula took out a loan to buy a new refrigerator.  She borrowed $1,000 (the bank gave her $1,000).  After a year, Paula has to pay back the bank.  She will have to pay $1,200.  Why did she have to pay an extra $200 to the bank?

• The $200 was interest charged by the bank.
• The $200 was extra savings the bank gave Paula.
• Paula earned $200 as income.
• Paula sold a natural resource, oil, and has to give back the money to the bank. 

Every week, Lisa earns $200 for babysitting.  What is Lisa's monthly income?  (Remember 1 month= 4 weeks).

• $200
• $400
• $800
• $1,000

This is money a person puts aside (normally in a bank) to spend in the future.

• interest
• savings
• credit
• loans

Sally bought a TV using a credit card.  The TV normally costs $500.  Sally had to repay a total of $600 because she borrowed the money as credit.  How much money did she have to pay only in interest?

• $500
• $600
• $100
• $1,000