Remember: A loan is paid from pay not yet earned, so less is left to spend. The extra is the price of having it now. Borrowing is okay. It just has a cost.
Read and answer
Read the story first, then answer.
The blue bicycleBoats bobbed as Lantern Bay woke up, and Kai started work at the dock, sorting fish for ten pretend coins every month. On the way home, Kai stopped at a window where a blue bicycle shone, but the tag said twelve coins, and ten was two short. Bea the lender heard about it and said, "I can lend you twelve coins." Together they wrote a plan: three coins a month for four months made twelve. Bea asked for one small extra coin each month, for the lending, so each month Kai would pay four coins: three for the bicycle, one extra. Kai rode off, and whoosh, it felt wonderful! Then payday came and the usual ten coins arrived, but four coins slid over to Bea, and six stayed with Kai. At the market a honey bun cost two coins, so ten coins had bought five buns before the loan, but now six bought only three. A loan spends coins from months that have not happened yet, which is how it shrinks your future. A friend named Odo wanted the same bicycle and saved four coins a month instead, so after three months the jar held twelve and Odo bought it with no extra. Kai paid sixteen coins and rode from week one, while Odo waited three months and paid twelve. Both plans are fine. In month five Kai's plan was done, and all ten coins of pay came home again: borrowing is okay, it just has a cost.
1
Kai earns 10 coins a month. The bicycle costs 12, so Kai is coins short.
2
Kai pays Bea 4 of the 10 coins on payday (the crossed ones). Kai keeps coins.
3
A honey bun costs 2 coins. Each ring buys one bun. Now 6 coins buy buns, not the 5 that 10 coins bought.
4
Kai pays 4 coins a month for 4 months. Look at the rings: 4 + 4 + 4 + 4 = .
5
Odo saves 4 coins a month. The towers show the first two months. In which month does the jar hold 12?
Month 2Month 4Month 3
6
Join each plan to what Kai pays in all (the extra coin comes every month).
1Three months
2Four months
3Six months
A15 coins
B18 coins
C16 coins
Compare, fix and think
7
Look at the picture. Which plan takes the fewest coins each month?
Three monthsFour monthsSix months
8
A longer plan feels lighter each month, but it costs more in all.
TrueFalse
9
Circle every one paid from pay not yet earned.
Odo's jar of saved coinsThe 4 coins from each paydayCoins kept from last month's payThe extra coin Bea asks each monthPaying a loan back each month
10
Number what happened to Kai.
Bea lends 12 coins on a plan
Kai sees a bicycle that costs 12
Kai sorts fish for 10 coins a month
Each payday 4 coins go to Bea
11
Kai says: with the loan, I still have all 10 coins to spend each payday. Is Kai right?
YesNo
12
Kai paid 16 coins for the bicycle and Odo paid 12. Kai paid coins more, and Odo waited three months.
13
Write one good thing and one hard thing about waiting to save up.
14
Draw a plate with a bite taken out. Write borrowed beside the bite.
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Answer key · Set A
How a loan shrinks your future
12 12 − 10 = 2.
26 10 − 4 = 6.
33 6 ÷ 2 = 3. Same payday, less to spend.
416 Four fours make 16. Twelve is for the bicycle and 4 are extra.
5Month 3 4, 8, 12: the jar holds 12 after three months.
61-A, 2-C, 3-B Three months is 5 a month, four months 4, six months 3: 5 × 3, 4 × 4 and 3 × 6.
7Six months Six months takes only 3 a month, though it costs the most in all.
8True Six months takes 3 a month and 18 in all. Three months takes 5 a month and 15 in all.
9The 4 coins from each payday, The extra coin Bea asks each month, Paying a loan back each month A loan is paid back from months that have not happened yet. Saved coins were earned before.
103, 2, 1, 4 The pay came first, then the bicycle, then the loan, and last the paydays.
11No Only 6 stay with Kai, because 4 go to Bea. Same payday, less to spend.
124 16 − 12 = 4 coins. They are the price of riding it today.
13Your own words: a grown-up reads it.
Mark each answer, count the right ones and write the score on the sheet.