Financial Literacy - Spending, Borrowing, and Credit

The ability to buy something now and pay for it later over time.

• interest

• credit

• budget

• lease

The fee a lender charges to borrow money.

• loan

• tax

• interest

• donation

What is the most likely reason that Kathleen bought an iPad using credit?

• Wanted to compare prices

• Thought the iPad might go on sale later

• Needed the iPad for school

• Did not have enough cash to pay for the iPad

Want or Need?

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Want or Need?

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Want or Need?

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Money that you have earned or received is called-

• Income

• Expenses

• Budget

• Taxes

Using a credit card allows you to...

• put money into a savings account.
• purchase something now and pay for it later.
• take money directly from your checking account.

Planned or Unplanned expense: Rent?

• Planned

• Unplanned

Which one is a unplanned expense?

• paying your car payment

• paying to fix a flat tire