Understanding Debt
A worksheet for 6th graders to understand basic concepts of debt, borrowing, and financial responsibility.
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Understanding Debt
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Read each question carefully and answer to the best of your ability. This worksheet will help you understand what debt is and how it affects people.
1. What is debt?
Money you earn from working
Money you owe to someone else
Money you save in a bank
Money given to you as a gift
2. When might someone need to borrow money?
To buy something they cannot afford right now
To save for their future
To give to charity
To pay for a trip they already took
3. When you borrow money, you usually have to pay back the original amount plus an extra fee called .
4. A is someone who lends money.
5. It is important to have a plan to money you borrow to avoid problems.
6. Borrowing money is always a bad idea.
True
False
7. If you don't repay your debt, it can affect your ability to borrow money in the future.
True
False
8. Explain in your own words why interest is charged on borrowed money.
Use the words below to complete the sentences.
9. A is the person or organization that receives money from a lender.
10. When you take out a loan, you become the .