Financial Literacy: Lesson 4 Borrowing vs Saving

What are the two choices you have when you want to buy something but don't have the money?

• Borrow it or find it

• Borrow it or save it

• Borrow it or steal it

• Save it or earn it

What is a loan?

• Money you borrow and must pay back with interest

• A type of savings account

• Money you borrow and don't have to return

• A gift from a friend

Who is a lender?

• A person who saves money

• A person who borrows money

• A person who spends money

• A person or group that lends money

What is interest in the context of borrowing?

• A savings plan

• A fee you pay to borrow money

• A reward for saving money

• A type of loan

What does saving money involve?

• Setting money aside for future use

• Using a credit card

• Spending money immediately

• Borrowing money from a bank

How much does Frankie Finance decide to save each week?

• $5

• $10

• $15

• $20

How long will it take Frankie to save $500 if she saves $10 per week?

• 25 weeks

• 50 weeks

• 75 weeks

• 100 weeks

What is the interest rate set by Frankie's parents for the loan?

• 0.5%

• 1.5%

• 2%

• 1%

How much total will Frankie need to pay back if she borrows $500 with 1% interest?

• $510

• $515

• $505

• $500

What should you consider when deciding between borrowing and saving?

• The pros and cons of each option

• The color of the money

• The type of bank

• The weather