Second Grade Personal Finance Quiz

Why do we have to make choices when spending money?

• We have too much money to spend.

• We cannot have everything we want.

• We do not want to miss out on anything.

Patrick chose a red pencil instead of a blue pencil.  

Which pencil is the opportunity cost? 

• Both pencils

• The red pencil

• The blue pencil

Answer explanation

The opportunity cost is the item that you DO NOT CHOOSE. What will you miss out by not choosing that item?

Maurice’s mom made a cake for his class to celebrate his birthday. Every student was given a piece of cake. What type of allocation did Maurice’s mom use?

• Price

• Contest

• Sharing

What does it mean to “barter” with a friend? 

• To trade with your friend

• To sell something to your friend

• To buy something from your friend

Answer explanation

Bartering is when you trade a good or a service with another person, without paying with money. Y

What is one benefit to using money instead of bartering?

• Money is used by everyone to buy goods.

• Money is hard to use to buy goods.

• Money is hard to find.

Answer explanation

Money is easier to use than bartering because it is easily available and everyone uses money today.

What is one benefit of spending money? 

• It is fun to buy new things.

• It is boring to buy new things.

• It takes a long time to spend money.

Which is another benefit of spending money? 

• Having less money to spend

• Not buying something for yourself

• Making someone happy by buying them a gift

What is one benefit of saving money? 

• Buying something now

• Having more money later

• Giving away a lot of money

Answer explanation

Saving money can help you purchase something more expensive later.

What is another benefit to saving money instead of spending it?

• You can buy something less expensive in the future.

• You can buy something now instead of in the future.

• You can buy something more expensive in the future.

Answer explanation

If you spend money as you get it, you will not have saved enough for something more expensive later.

Spencer has been so happy this week because he was able to buy a new bike. Which of the following BEST describes why Spencer is so happy. 

• Spencer had a cost for his new bike.

• Spencer is benefiting from spending his money.

• Spencer is benefiting by making someone else happy.

Answer explanation

Sometimes it is fun to spend money. Spencer got something fun from saving and then spending his money on the bike.