Worksheet 1.4 Financial Decisions - Grade 3

Learn about making financial decisions with 5 detailed exercises for 3rd grade math students.

Financial Decisions: Exercises 1 to 3
1 Spending Decision
Exercise 1
Maya has $20. She wants to buy a book for $12 and a pencil for $3. Does she have enough money? If yes, how much will she have left?
Definition:

Spending decision: Choosing whether to spend money on items you want or need

Decision-making method:
  1. Identify the money you have
  2. List the items you want to buy
  3. Calculate the total cost
  4. Compare total cost with available money
  5. Make the decision based on the comparison
Available Money
$20
Book Cost
$12
Pencil Cost
$3
Total Cost
$15
Step 1: Identify available money

Maya has $20

Step 2: List items and their costs

Book: $12, Pencil: $3

Step 3: Calculate total cost

$12 + $3 = $15

Step 4: Compare with available money

$15 (total cost) < $20 (available money)

Step 5: Calculate remaining money

$20 - $15 = $5 remaining

Yes, Maya has enough money and will have $5 left
Final answer:

Yes, Maya has enough money. She will spend $15 and have $5 remaining.

Applied rules:

• Budget comparison: Total expenses must be less than or equal to available funds

• Remaining calculation: Available money minus expenses equals remaining money

• Decision logic: If expenses ≤ available money, then purchase is possible

2 Saving Decision
Exercise 2
Tom gets $25 for his allowance. He wants to save $10 for a new game next month. He also wants to spend $8 on candy today. How much money will he have left after saving and spending?
Definition:

Saving decision: Choosing to set aside money for future use instead of spending it now

Total Money
$25
Saving
$10
Spending
$8
Remaining
$7
Step 1: Identify total money received

Tom has $25 from allowance

Step 2: Identify saving goal

Tom wants to save $10 for a game

Step 3: Identify spending amount

Tom wants to spend $8 on candy

Step 4: Calculate total commitments

$10 (saving) + $8 (spending) = $18

Step 5: Calculate remaining money

$25 - $18 = $7 left over

Tom will have $7 remaining after saving and spending
Final answer:

Tom will have $7 remaining after saving $10 and spending $8.

Applied rules:

• Money allocation: Divide money between different purposes

• Commitment tracking: Keep track of all planned uses of money

• Balance check: Ensure total commitments don't exceed available funds

3 Choice Decision
Exercise 3
Emma has $15. She can buy either a doll for $10 or two books for $8 total. Which should she choose? What is her financial decision?
Definition:

Choice decision: Selecting between different spending options based on preferences and value

Available Money
$15
Option 1
Doll: $10
Option 2
Books: $8
Remaining
Doll: $5, Books: $7
Step 1: Identify available money

Emma has $15

Step 2: List available options

Option 1: Doll for $10, Option 2: Two books for $8

Step 3: Check affordability

Doll: $10 ≤ $15 ✓, Books: $8 ≤ $15 ✓

Step 4: Evaluate preferences

Emma should consider what she values more: the doll or the books

Step 5: Consider remaining money

Doll: $15-$10=$5 remaining, Books: $15-$8=$7 remaining

Step 6: Make final decision

Choose based on preference and need for remaining money

Emma can afford both but should choose based on preference and remaining money
Final answer:

Emma can choose either option. If she wants to keep more money, the books are better ($7 remaining vs $5).

Applied rules:

• Comparison analysis: Evaluate multiple options against available funds

• Preference consideration: Choose based on personal value and needs

• Flexibility planning: Consider keeping money for unexpected needs

Financial Decision Making Concepts
Money Available - Expenses = Remaining Money
Financial Decision Formula
💰
Earn
Get money
📊
Plan
Make choices
💸
Spend
Buy things
🐷
Save
Keep for later
🤔
Think
💡
Decide
✅
Act
📈
Review
Have Money
See Options
Compare Costs
Make Choice
Save
Keep money
For later
Spend
Use money now
For needs/wants
Share
Give money
To help others
Financial Decision Rule: Always compare what you want with what you can afford.
Money Management: Divide your money into three parts: Spend, Save, Share.
Financial Decisions: Exercises 4 to 5
4 Budgeting Decision
Exercise 4
Alex gets $30 allowance per week. He spends $10 on snacks, $5 on toys, and wants to save $12. How much does he have left? Is his plan realistic?
Definition:

Budgeting: Planning how to spend and save money over a period of time

Income
$30
Expenses
$15
Savings
$12
Total
$27
Step 1: Calculate total planned expenses

Snacks: $10 + Toys: $5 + Savings: $12 = $27

Step 2: Compare with income

$27 (planned) vs $30 (income)

Step 3: Calculate remaining money

$30 - $27 = $3 remaining

Step 4: Evaluate plan

The plan is realistic since $27 < $30

Step 5: Consider buffer

Alex has $3 left as a buffer for unexpected expenses

Alex's plan is realistic with $3 remaining
Final answer:

Alex's plan is realistic. He will spend $15, save $12, and have $3 left.

Applied rules:

• Budget planning: Plan expenses before spending

• Realistic planning: Total expenses must not exceed income

• Buffer provision: Keep some money for unexpected needs

5 Comparison Decision
Exercise 5
Maya has $20. She sees two items: a backpack for $15 that she needs for school, or a toy for $12 that she wants. What should she choose? Show the financial decision process.
Definition:

Priority-based decision: Choosing between needs and wants based on importance

Available Money
$20
Backpack
Need: $15
Toy
Want: $12
Remaining
Backpack: $5, Toy: $8
Step 1: Identify available money

Maya has $20

Step 2: List options with priorities

Backpack: Need for school ($15), Toy: Want ($12)

Step 3: Check affordability

Backpack: $15 ≤ $20 ✓, Toy: $12 ≤ $20 ✓

Step 4: Evaluate importance

The backpack is a need for school, while the toy is just a want

Step 5: Consider consequences

Without a backpack, Maya might struggle at school; without a toy, she'll be fine

Step 6: Make final decision

Choose the backpack since it's a necessity

Step 7: Calculate remaining money

$20 - $15 = $5 remaining

Maya should buy the backpack for $15 and have $5 remaining
Final answer:

Maya should buy the backpack for $15 since it's a need for school, leaving her with $5 remaining.

Applied rules:

• Need vs Want: Prioritize needs over wants

• Consequence analysis: Consider impact of each decision

• Value assessment: Choose based on importance and necessity

Financial Decision Making Guide: Decision-Making Process
Assess → Plan → Decide → Act → Review
Financial Decision Process
Key definitions:

Financial decision: A choice about how to use money - spend, save, or share

Budget: A plan for how to spend and save money

Income: Money received (allowance, gifts, etc.)

Expense: Money spent on items or activities

Savings: Money kept for future use

Need: Something you must have to live safely and healthily

Want: Something you would like to have but could live without

Financial Decision Process:
  1. Assess: Count how much money you have
  2. Plan: Decide what you need and want
  3. Compare: Look at different options
  4. Choose: Make your financial decision
  5. Track: Keep track of money spent and saved
Tip 1: Always make a list of what you want before shopping.
Tip 2: Save some money each time you get it.
Tip 3: Ask yourself: "Do I need this or just want it?"
Tip 4: Wait 24 hours before buying expensive items.
Common financial decisions: What to buy, how much to save, sharing money with others.
Good habits: Divide money into spend/save/share categories, track expenses.
Financial Rules for Kids:

• Only spend money you have

• Save before you spend

• Think before you buy

• Keep track of your money

• Share when you can

Questions & Answers

Question: How do I know if something is a "need" or a "want"? Sometimes I think everything is a need!

Answer: Great question! Here's how to tell the difference:

  • Needs: Things you must have to live safely and healthily (food, water, clothes, shelter, school supplies)
  • Wants: Things you would like to have but could live without (toys, games, treats, fancy clothes)

Ask yourself these questions:

  • Will I be sad if I don't get this? (likely a want)
  • Will I be in danger or unable to do important things without this? (likely a need)
  • Would my family say this is necessary? (likely a need)

Example: Food is a need, but candy is a want. School shoes are a need, but designer sneakers are a want.

Question: I got $20 for my birthday but I want to buy many things. How do I decide what to buy?

Answer: Here's a simple method to make good choices:

  1. Make a list of everything you want
  2. Write the price next to each item
  3. Prioritize: Put a number 1 by what you want most
  4. Add up the prices of the most important items
  5. Buy the most important things first

With $20, you might choose one big thing ($15) and one small thing ($5), or save some for later. Remember, you don't have to spend it all at once!

Example: If you want a $12 toy and a $8 book, you can buy both and have $0 left, or buy just the toy and save $8 for next time.

Question: My child always wants to spend money immediately. How can I teach patience with money?

Answer: Teaching patience with money is important! Try these strategies:

  • Create a "save for" jar with a picture of the item they want
  • Introduce the "wait rule" - wait 24 hours before buying non-essential items
  • Match their savings - if they save $5, you add $1
  • Show them how money grows over time in a simple way

Start with small goals. If they want a $10 toy, help them save for it. Celebrate when they reach their goal! This builds positive associations with saving.

Make it visual - use a chart or jar to show progress toward their goal. Children learn better when they can see their progress.