Credit and borrowing | Grade 3 math

HH.2 Credit and borrowing

Select the two examples of using credit.

putting money into savings

borrowing money from a bank for a car

buying a refrigerator with a credit card

using a coupon at a store

Which purchase is MOST likely to require someone to use credit?

a pack of pencils for school

a bottle of water

a new house

a movie ticket

Select the two situations that show a person using credit.

Ava puts money into her savings account.

Liam uses a credit card to pay for groceries.

Emma pays for lunch using money from her wallet.

Noah buys a laptop now and agrees to pay the bank later.

Select all the examples of responsible borrowing.

paying credit card bills on time

borrowing money and refusing to pay it back

borrowing only what can be repaid

charging items without checking the cost

Mia and her brother are comparing ways to pay for a new washing machine.

• Mia pays the full amount in cash today.
• Her brother uses credit and pays part each month.

What is true about using credit?

Credit makes items free to keep.

Credit allows people to buy something now and pay later.

Credit means saving money in a bank account.

Select the two items people commonly buy using credit.

a homework assignment

a car

a house

a library card

Ethan used a credit card to buy concert tickets.
What must Ethan do later?

pay back the money he borrowed

return the tickets to the store

trade the tickets for cash

Which situation is an example of using credit?

Harper gives money to an animal rescue center.

Mason uses a gift card to buy a video game.

Diego charges $400 on his credit card for home repairs.

Lily saves $20 from each paycheck for vacation.

Pick all the examples of using credit.

Mia puts birthday money into her savings account.

Tyler pays cash for popcorn at the movie theater.

Mrs. Reed borrows money to repair her restaurant oven.

Carlos buys a gaming system now and agrees to make payments each month.

Olivia and Mason both want to buy bicycles that cost $300.

• Olivia has $280 saved and borrows $20 from a bank.
• Mason has $40 saved and borrows $260 for the same bicycle.

Who will MOST likely have an easier time paying back the borrowed money, and why?

Olivia, because bicycles always increase in value.

Mason, because borrowing more money is easier to repay.

Olivia, because she borrowed less money.

Mason, because he had less money saved before borrowing.

Noah and Lucas both need to pay for a training class that costs $800.

• Noah has $700 saved and borrows $100.
• Lucas has no savings and borrows the full $800.

Who will MOST likely have less debt after paying for the class, and why?

Lucas, because using savings first is not important when borrowing money.

Lucas, because borrowing the full amount gives him more time to save.

Noah, because he borrowed less money.

Maya wants to buy a bicycle, but she does not have enough cash with her.
She uses a credit card to pay for the bicycle and plans to pay the money back later.

What is one use of credit?

giving money to a bank for safekeeping

earning money from a job

borrowing money to buy something now

trading items without using money

Olivia wants to buy a new tablet that costs more than the cash she has today.
Which choice best explains how credit can help Olivia?

Credit helps Olivia earn extra money at work.

Credit changes cash into coins.

Credit lets Olivia borrow money to buy the tablet now.

Marcus used credit to buy a laptop for school. Which statement is true?

Marcus cannot take the laptop home until he saves all the money.

Marcus can use the laptop now and pay the money back later.

Marcus already owned the laptop before using credit.

Pick all the situations where someone would need to use credit to buy something now.

Ava wants to buy a bicycle that costs $120. She has $80 saved.

Leo wants to buy a backpack for $35. He has $60 in cash.

Hannah wants to buy a couch for $900. She has $500 in her checking account.

Sofia’s family used credit to pay for a washing machine when their old one stopped working.

Why might they choose to use credit?

They wanted to spend all their savings at once.

They wanted to lower the price of electricity.

They needed the washing machine before they had enough cash.

Which situation is an example of using credit?

Olivia’s parents borrow money from a bank to buy a car.

Ethan uses a coupon to save money at the grocery store.

Nora gives money to a charity.

Liam saves part of his allowance each week.

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