Personal Finance Exercises for Kids

Here are some financial word problems to help kids learn about personal finance management!

1. Jeff thinks his server did a great job. His bill is $32.50, and he wants to give a 20% tip. What would the tip be?

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Answer: Convert the percentage into a decimal by moving the decimal point 2 places to the left and then multiply $32.50 by 0.20, which equals $6.50.

2. Nancy's credit card has a balance of $1,272.50 with a minimum monthly payment of $32. If she pays 1 1/2 times the minimum payment each month, how long will it take to pay off the credit card?

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Answer: Multiply the minimum payment ($32) by 1.5, which equals $48. Then divide the balance ($1,272.50) by the payment ($48), which equals 26.5 months. Since there is something owed after the 26 months, Nancy will also have to make 1 last payment on month 27.

3. Tom gets paid $450 every two weeks. A few days after his first paycheck in February, Tom broke his wrist playing football. He had to pay $390 in medical fees, and put it on his debit card. His student loan payment of $250 is due before his next paycheck. Should he pay his student loan with his debit card or credit card?

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Answer: Tom only has $450 to spend. Subtract his medical fees ($390) and he has $60 left. So he does not have enough money left over to pay his student loan of $250. If he charges it to his credit card, when he gets paid again before the end of the month, he can pay off his credit card and still have money left over for other expenses like food.

4. Dave decides to buy a used car for $5,400. He needs to buy the car in eight weeks. His full-time job pays him $425 a week, and he wants to earn the rest of the money with a part-time job. If he has $800 saved, how much extra money does he need to earn from his part-time job?

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Answer: First calculate how much money Dave will save over the 8 weeks at his full-time job. Multiply his weekly pay ($450) by 8 weeks, which equals $3,600. Add his current savings ($800), which equals $4,400. Now subtract $4,400 from the cost of the car ($5,400) and that equals $1,000. So Dave needs to earn an extra $1,000 from his part-time job to pay for the car.

5. Becky gets paid $1,000 every month. It's nearing the end of the month, and becky wants to buy a tablet for $200. She checks her bank and sees these 5 last transactions: 1) A withdrawal for $625. 2) A deposit for $50. 3) A withdrawal for 175. 4) A withdrawal for $23. 5) A withdrawal for 13. She knows her $60 phone bill will be automatically deducted from her account any day now. Does she have enough money to buy the tablet now?

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First subtract any withdrawals and any deposits to Becky's previous pay check of $1,000: $1,000 - $625 + $50 - $175 - $23 = $227. Then subtract the upcoming $60 phone bill, which leaves $167, which is not enough to pay for the $200 tablet.


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