Methods of Payment
What is one advantage of using cash to buy something?
You can see how much you're spending and you won’t go into debt.
What is a loan?
Money that you borrow and have to pay back.
What does it mean to "save" money?
To keep money instead of spending it, usually for future use.
What does it mean to donate money?
To give money to help someone or a cause without expecting it back.
You want to buy a toy but don’t have enough money. What are two things you could do?
Save up more money or use a credit card if you are earning money soon.
What is a debit card and how does it work?
A card that lets you pay using money directly from your bank account.
When you borrow money from the bank, what is the extra amount you might have to pay back called?
Interest.
Name one reason why someone might set a financial goal.
To save up for something special, like a bike or a trip.
What’s the difference between lending and borrowing?
Lending is giving money with the expectation of getting it back. Borrowing is receiving money that you have to repay.
Your friend wants to borrow $10 but hasn’t paid you back from last time. What should you think about before saying yes?
Will they pay you back? Can you afford to lend it again?
Name one place where a credit card might be better than cash, and explain why.
Online shopping—credit cards can be tracked and offer fraud protection.
True or False: A lower interest rate means you pay more over time.
False.
You want to buy a $60 video game in 6 weeks. How much should you save each week?
$10 per week.
Give an example of a time when trading something might be better than buying it.
Trading a book with a friend instead of buying a new one.
You find $20. What are two smart things you could do with it?
Save it or use part of it wisely (like donating or buying a needed item).
What is one risk of using mobile payments like Apple Pay?
If your phone is lost or hacked, your information could be stolen.
If you borrow $100 and the interest is 10%, how much will you have to pay back?
$110.
List two steps to help you reach a financial goal.
Decide what you want to save for and make a plan to set money aside regularly.
Why might someone choose to lend money instead of giving it away?
They want to help but expect to get it back later.
You get $15 every week. You want to buy snacks and save for a $75 jacket. How would you budget your money?
Save $10 and use $5 for snacks until you reach your goal.
Compare two payment methods and explain which one is best for online shopping and why.
Credit cards are better than cash for online shopping because they offer fraud protection and can be used remotely.
Explain the difference between simple interest and compound interest in your own words.
Simple interest is added once based on the original amount. Compound interest is added on both the original and the interest already earned.
Create a simple budget for someone who earns $20 a week and wants to save for a $100 bike, assuming they want to have money top spend day-to-day.
Save $10/week for 10 weeks, use the other $10 for needs or fun.
Sort these into the right group:
Giving a friend a toy and asking for one back
Giving $5 to a charity
Asking to use your sibling’s scooter for a week
Letting a friend use your video game until Friday.
Lend
Donate
Borrow
Trade
Trade- Giving a friend a toy and asking for one back
Donate- Giving $5 to a charity
Borrow- Asking to use your sibling’s scooter for a week
Lend- Letting a friend use your video game until Friday.
You saved $100. A new video game comes out, but you also promised to donate to your class fundraiser. What are your options and how do you decide?
Options: Buy the game or split your money.
Decision: Think about your values and priorities—what matters most right now?