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Money · Ages 7+ · Set A
What a credit card really is
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Goal: 15 min
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Remember: A credit card is not free. It lets us borrow from a bank: the bank pays first, and we pay it back.

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Nico's blue hatNico wanted a blue hat that cost four pretend coins, but the coin purse was at home. Nico had a card in a pocket, and Zed the hat seller said, "A card works here too." Beep! Nico tapped the card and got the hat. No coins left Nico's hand. Was the hat free? No. Behind the card is a bank, and the bank paid Zed four coins right away. Now Nico owes the bank. A credit card lets us borrow from a bank while we shop. The bank sets a top number of coins called the limit. At the month's end the bank sent a bill: "One blue hat, four coins." Nico paid the bank four coins. If a bill waits too long, the bank may ask for extra coins.
1
Nico took the hat and gave Zed no coins. Was the hat free?
Yes, a card makes things freeNo. The bank paid, and Nico owes the bank four coinsNo. Zed owes Nico four coins
2
Nico's bill said: One blue hat, coins.
3
Join each word to what it means.
  1. 1limit
  2. 2bill
  3. 3owe
  4. 4card
  • Athe top number of coins the bank lets Nico borrow
  • Ba paper that lists each thing and its coins
  • Conly plain plastic, with the bank behind it
  • Dmust pay those coins back
4
Circle every one that is borrowing.
Coins earned selling lemonadeA tab at the baker'sA toy given by GranCoins lent by a bankTapping a card to buy a hat
5
Tapping a card is the same as paying with your own coins.
TrueFalse
6
Number what happened.
  • Nico pays the bank four coins
  • The bank pays Zed four coins
  • Nico wants the hat, but the purse is at home
  • Nico taps the card
  • The bank sends a bill at the month's end

Think, fix and write

7
If a bill waits too long, the bank may ask for extra coins.
TrueFalse
8
Fix the mistake. Nico says: A card is magic, so I never have to pay. What is wrong?
A card is a promise to pay back. Every tap is a little promiseZed keeps the cardNothing is wrong
9
A credit card lets us from a bank while we shop.
borrowfindkeep
10
Stretch. Say Nico taps for a second hat that also costs 4 coins. The next bill would list coins.
11
Write one thing your family borrows and gives back, like a library book.
12
Draw Nico's bill with one blue hat and its coins.
Scan the code at the top to mark this sheet on screenTake a photo of your answers or type them. It is marked for you automatically, and your score is kept.
Answer key · Set A
What a credit card really is
1No. The bank paid, and Nico owes the bank four coins Behind the card is a bank. It paid Zed, so Nico now owes the bank.
24 The hat cost four pretend coins, and the bill lists each thing and its coins.
31-A, 2-B, 3-D, 4-C The bank sets a limit, sends a bill, and expects what Nico owes to be paid back. The card itself is only plastic.
4A tab at the baker's, Coins lent by a bank, Tapping a card to buy a hat A tab, a bank loan and a card tap all have to be paid back. Coins you earned and a gift are your own, so nothing is owed.
5False With a card the bank pays first, and Nico pays the bank back later. That is borrowing.
65, 3, 1, 2, 4 Nico tapped, the bank paid first, and Nico paid the bank when the bill came.
7True Waiting can cost extra. A card is a promise to pay back.
8A card is a promise to pay back. Every tap is a little promise The card feels like magic, but the bank paid, so Nico owes the bank.
9borrow The bank pays the shop first, and we pay the bank back.
108 4 + 4 = 8. The bill lists each thing and its coins.
11Your own words: a grown-up reads it.
Mark each answer, count the right ones and write the score on the sheet.