6th Grade PFL- Debit & Credit

What grade level is the concept of personal financial literacy being discussed?

• Fifth grade

• Sixth grade

• Eighth grade

• Seventh grade

What standard does the concept of personal financial literacy fall under?

• 5.11 D

• 7.12 C

• 6.14 B

• 6.13 A

What is a potential downside of using a credit card?

• Unlimited spending

• No need to repay

• Immediate payment required

• Interest and fees

What is a credit limit?

• A fee charged annually

• The maximum amount you can borrow

• Interest accrued monthly

• The minimum amount you can spend

Why might paying cash later be considered the best option?

• It allows for immediate gratification

• It avoids potential interest and fees

• It requires a credit check

• It offers reward points

What does it mean to save money and pay cash at a later date?

• Waiting until you have enough money to buy outright

• Taking out a loan from the bank

• Using a credit card and paying it off immediately

• Borrowing money from a friend

What is the main problem with using a debit card when you don't have enough money?

• It increases the credit limit

• It automatically loans you money

• It may lead to overdraft fees

• It pulls money directly from your account

Tags

CCSS.7.NS.A.1C

How is a debit card different from a credit card?

• A debit card charges more interest than a credit card

• A debit card pulls funds from your account, a credit card does not

• A debit card has no spending limit, unlike a credit card

• A debit card allows borrowing, a credit card does not

What is the similarity between using cash and a debit card at a later date?

• Both incur interest

• Both require borrowing

• Both offer reward points

• Both use real money

What is the best option if you want to avoid extra costs?

• Borrowing money from a bank

• Saving and using a debit card later

• Using a credit card now

• Paying with cash immediately