Financial Literacy: Lesson 2 Needs and Wants

Which of the following is an example of a need?

• A smartphone

• Food

• A pair of designer shoes

• A new video game

What is a want?

• Something necessary for survival

• Something fun but not essential

• Something you must have

• Something you cannot live without

What is opportunity cost?

• The cost of the option you chose

• The cost of the cheapest option

• The total cost of all options

• The cost of the option you did not choose

How much did Frankie earn from mowing lawns and running a lemonade stand?

• $20

• $85

• $65

• $45

What is the opportunity cost if Frankie chooses to go to the movie?

• Spending all her money

• Not having enough for popcorn

• Missing out on the movie

• Missing out on the rollerblades sale

What should Frankie consider when making her decision?

• The pros and cons of each option

• How much money she has

• What her friends think

• What her parents want

What is the cost of the movie, popcorn, and soda?

• $10

• $20

• $40

• $30

What advice is given for making financially responsible decisions?

• Spend all your money

• Make a list of pros and cons

• Ask your friends for advice

• Always choose the cheaper option

Where can you find more resources and solutions for teachers and homeschoolers?

• schoolresources.net

• financeforkids.com

• teachandlearn.org

• learnbrite.org

Why is it important to understand the difference between needs and wants?

• To make better financial decisions

• To save more money

• To avoid buying anything

• To impress friends