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Financial Literacy Grade 2-3 Answer Key

Financial Literacy: Spending and Saving: Making Choices

Practice choosing between needs, wants, saving, and spending

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Financial Literacy: Spending and Saving: Making Choices

Practice choosing between needs, wants, saving, and spending

Financial Literacy - Grade 2-3

Instructions: Read each problem carefully. Think about the best money choice. Show your work in the space provided.
  1. 1

    Mia has $5. She can buy a notebook for school for $3 or a toy ring for $3. The notebook is needed for class tomorrow. Which choice should Mia make first, and why?

    A need is something important for daily life or school. A want is something fun but not necessary.

    Mia should buy the notebook first because it is something she needs for school. The toy ring is a want and can wait.
  2. 2

    Jay earns $2 each week for helping at home. He wants to save $8 for a soccer ball. How many weeks will Jay need to save if he saves all of his money each week?

    Jay will need to save for 4 weeks because 2 + 2 + 2 + 2 = 8.
  3. 3

    Circle the items that are needs: winter coat, candy bar, toothbrush, video game, lunch.

    Think about which items help a person stay safe or healthy.

    The needs are winter coat, toothbrush, and lunch. These help keep a person warm, healthy, and fed.
  4. 4

    Lena has $10. She wants a book that costs $6 and stickers that cost $4. Can she buy both items? Explain your answer.

    Yes, Lena can buy both items because $6 + $4 = $10. She will have $0 left.
  5. 5

    Aiden has $7. He can spend $5 on a toy car today, or he can save the $5 toward a $12 art set. What is one good reason to save the money instead of spending it today?

    Think about what happens when you save money for something that costs more.

    A good reason to save the money is that Aiden can get closer to buying the art set. Saving helps him reach a bigger goal.
  6. 6

    Look at this money plan: Save $3, Spend $2, Give $1. How much money does the plan use in all?

    The plan uses $6 in all because $3 + $2 + $1 = $6.
  7. 7

    Sofia wants a jump rope that costs $9. She has already saved $4. How much more money does she need to save?

    Subtract the amount she already has from the total cost.

    Sofia needs to save $5 more because $9 - $4 = $5.
  8. 8

    Ben gets $6 for his birthday. He spends $2 on a snack. How much money does Ben have left?

    Ben has $4 left because $6 - $2 = $4.
  9. 9

    Nora sees a puzzle for $8. She has $8, but she is also saving for a bike bell that costs $10. If she buys the puzzle, how much money will she have left for the bike bell?

    Spending all of your money means there is none left to save.

    Nora will have $0 left for the bike bell if she buys the puzzle. She may choose to wait and save if the bike bell is more important to her.
  10. 10

    A class is collecting coins for a field trip. Sam brings 3 quarters. Each quarter is worth 25 cents. How many cents did Sam bring?

    Sam brought 75 cents because 25 + 25 + 25 = 75.
  11. 11

    Which choice shows saving? Choice A: Kim puts $4 in her piggy bank. Choice B: Kim spends $4 on gum. Explain your answer.

    Saving means keeping money for the future.

    Choice A shows saving because Kim keeps the money in her piggy bank to use later.
  12. 12

    Eli has $12. His money plan is to save half and spend half. How much should Eli save, and how much should he spend?

    Eli should save $6 and spend $6 because half of $12 is $6.
  13. 13

    Grace wants to buy crayons for $3 and a small toy for $5. She has $6. Which item can she buy now without borrowing money? Explain.

    Compare the prices to the amount of money Grace has.

    Grace can buy the crayons because they cost $3 and she has $6. She cannot buy both items because $3 + $5 = $8, which is more than $6.
  14. 14

    Marcus saves $1 on Monday, $1 on Tuesday, $2 on Wednesday, and $2 on Thursday. How much did he save in all?

    Marcus saved $6 in all because $1 + $1 + $2 + $2 = $6.
  15. 15

    Tara has $9. She needs socks for $4 and wants a comic book for $6. Can she buy both? What is a smart choice?

    Add the two costs, then think about which item is a need.

    Tara cannot buy both because $4 + $6 = $10, and she only has $9. A smart choice is to buy the socks first because they are a need, then save for the comic book.
LivePhysics™.com Financial Literacy - Grade 2-3 - Answer Key