Copy of #4 Financial Literacy for KIds-Borrowing vs. Saving

What are the two main choices mentioned for getting money to buy something?

• borrowing and spending

• borrowing and saving

• earning and spending

• saving and investing

What does borrowing mean?

• keeping something permanently

• giving money away

• selling something you own

• taking something temporarily

What is the term for the place you borrow money from?

• parents

• loaner

• lender

The additional money you have to pay for the privilege to borrow money is called what? 

• Interest

• Extra

• Interesting

• Principal

What is a loan?

• Money borrowed that must be repaid

• Money given for free

• Money saved in a bank

• Money earned from work

A great idea to come up with money to buy something you want is called a...?

• Set Aside Plan

• Savings Plan

• Interest Plan

• Want Plan

How much does Frankie decide to save from her allowance each week?

• $5

• $10

• $15

• $20

The original amount of money borrowed is called the...?

• Interest

• Principal

• Original

The specific time frame to pay back borrowed money is called...?

• Term of the loan

• Type of the loan

• Loan Time

• Time Loan

Why might someone need to borrow money according to the video?

• to buy groceries

• to pay for hobbies

• to make big purchases like a car or for emergencies

• to invest in stocks