WorksheetsLesson 7: Credit and Borrowing - Pre-Test
Total questions: 17
Worksheet time: 9mins
What does it mean to borrow money?
To give money to a friend
To ask for money that you will pay back later
To find money on the ground
To keep all your money
What is credit?
Free money you never return
Money you earn from work
Money someone lends you that you must pay back
A gift card
Why is it important to pay back money you borrow?
So people will give you more candy
To show you're responsible and trustworthy
So you can borrow forever
So you don't have to save
What happens if you don't pay back credit?
Nothing at all
You might get more money
You could get in trouble and hurt your credit score
You get a reward
When is a good time to use credit?
To buy toys every day
For fun spending anytime
For important needs when you can repay it
Every time you shop
What can happen if you use too much credit and can't pay it back?
Your money doubles
You might have to pay extra fees or interest
You get free gifts
You never have to pay again
Who gives you credit when you need to borrow money?
A bank or lender
Your pet
The weather
Your favorite toy
What is a good reason to borrow money using credit?
To spend on things you don't need
To buy something important you can't afford right now
So you never have to save money
Because you want to have more money for games
What is one benefit of having a good credit score?
Your friends give you gifts
You get free vacations
You never have to pay bills
You can borrow more money easily
Which of these is a smart way to use credit?
Using credit for emergencies only
Borrowing more than you can repay
Never checking your balance
Spending on things you don't need
What should you do before borrowing money?
Ask your pet for advice
Ignore the interest rate
Spend it all right away
Make sure you can pay it back
What is principal?
“The fee that is paid to borrow money.”
“The paying off of a debt with a fixed repayment schedule in regular installments over a period of time.”
“The rate lenders charge borrowers for money.”
“The non-interest portion of a loan.”
DEFINE credit.
Any form of deferred payment.
The loaning of assets.
A score that measures your trustworthiness.
The promise to spend borrowed money.
What is credit?
Free money
Borrowed money
Standard of living
A term that causes tears
Credit allows for purchases without cash.
True
False
Another name for open ended credit is ____________ credit
Never ending
Revolving
Spinning
Endless
All of the following are examples of benefits of credit, EXCEPT:
Increase your standards of living
Safer than cash
Buying power
Can tie up future income
