Financial Literacy Review

Jim's dad received $2,250 on his paycheck. He wants to save this money. Which statement describes the best choice for saving money?

• use the money for the family's next vacation

• buy something he might be able to sell later

• put the money in a bank account

Sarah wants to buy some new shoes. Sarah has some money saved but it is not enough to buy the shoes. Which of the following is the best way for Sarah to save enough money to buy the shoes?

• spend all of her allowance on games and toys

• save the money her mom gives her for doing chores each week

• give all of her allowance to her sister to spend on candy

Which statement describes what happens when you spend money?

• the amount of money decreases

• the amount of money increases

• the amount of money you have stays the same

Jon is going to travel to visit his aunt. He goes to the bank because he needs to take some cash with him. Which of the following describes Jon TAKING money OUT of his account at the bank?

• He is making a deposit.

• He is making a withdrawal.

• He is saving.

Which statement does NOT describe a withdrawal from a bank account?

• Using $30 from your savings account to buy a shirt.

• Putting the money from your paycheck into your account.

• Getting money from your account using an ATM machine.

Which situation is an example of borrowing?

• Aunt Lisa gives Anthony money for his birthday.

• Dave and Jill put their money together to buy a bike they will share.

• Lucy asks her sister for money to buy a book and she says she will pay her back later.

Bob saved money each week to buy his favorite game. He opened a savings account at the bank. Each week he added the money he earned doing chores to his savings account.

Which of the following describes Bob ADDING money to his savings account?

• He is making a deposit.

• He is spending.

• He is making a withdrawal.

Which of these is an example of a withdrawal?

• Beth put money from her birthday into her account.

• Amy earned $10 for babysitting

• Jack took money out of his account to buy a basketball.

Which situation is an example of lending?

• Dani takes a $10 bill from her savings to put in a birthday card for her brother.

• Victor is selling shirts for his team. Customers will pay him when he gives them a shirt.

• Lisa will use her money to help Mary pay for a necklace IF Mary pays her BACK.

Mrs. Rider likes her best friend Samantha's new doll. Mrs. Rider asks Samantha if she can have the doll to play with for the weekend.

Which statement could be a reason why Samantha might NOT lend the doll to Mrs. Rider?

• Samantha does not really like the doll.

• Samantha lent a toy to Mrs. Rider before and she took good care of it.

• Samantha lent a toy to Mrs. Rider before and she broke it.