Financial Planning

What is a need?

• Recreational toys

• A pair of expensive sneakers

• A new video game

• Something that is a necessity for survival

What is an example of a want?

• A new pair of rollerblades

• Food

• Basic clothing

• Water

What is financial literacy?

• The process of making a lot of money

• Understanding and effectively using various financial skills

• Knowing how to save money only

• The ability to play financial games

What is opportunity cost?

• The cost of missing out on the option not chosen

• The benefit of choosing the cheapest option

• The cost of the most expensive option

• The total cost of all available options

How much money has Frankie earned from mowing her neighbor's lawn and running her own lemonade stand?

• $85

• $65

• $20

• $45

What dilemma does Frankie face?

• Deciding whether to save or spend all her money

• Choosing between buying a new video game or a movie ticket

• Deciding between two types of rollerblades

• Choosing between buying rollerblades on sale or going to the movies with friends

What should Frankie do according to the text?

• Ask her grandmother for more money

• Decide what works best for her considering her values and desires

• Buy the rollerblades without hesitation

• Go to the movie without considering the rollerblades