Worksheet 1.4 Financial Decisions Answer Key - Grade 3

Complete answer key with detailed solutions for financial decisions worksheet exercises.

Answer Key: Exercises 1 to 3
1 Spending Decision Solution
Original Question
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?
Problem Type:

Spending decision: Determining if available funds cover expenses and calculating remainder

Solution Method:
  1. Identify the money available: $20
  2. List the items and their costs: Book $12, Pencil $3
  3. Calculate total cost: $12 + $3 = $15
  4. Compare with available money: $15 < $20
  5. Calculate remaining money: $20 - $15 = $5
Available Money
$20
Total Cost
$15
Remaining
$5
Step 1: Calculate total expenses

Book: $12 + Pencil: $3 = $15

Step 2: Compare with available money

$15 < $20, so Maya has enough money

Step 3: Calculate remaining money

$20 - $15 = $5 remaining

✓
Yes, Maya has enough money and will have $5 left
Correct Answer:

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

Key Concepts:

• 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 Solution
Original Question
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?
Problem Type:

Saving decision: Allocating money between saving and spending goals

Total Money
$25
Commitments
$18
Remaining
$7
Step 1: Identify total money received

Tom has $25 from allowance

Step 2: Calculate total commitments

Saving: $10 + Spending: $8 = $18

Step 3: Calculate remaining money

$25 - $18 = $7 remaining

Step 4: Verify feasibility

Since $18 < $25, Tom's plan is feasible

✓
Tom will have $7 remaining after saving and spending
Correct Answer:

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

Key Concepts:

• 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 Solution
Original Question
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?
Problem Type:

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: Verify affordability of both options

Doll: $10 ≤ $15 ✓, Books: $8 ≤ $15 ✓

Step 2: Calculate remaining money for each option

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

Step 3: Evaluate personal preference

Emma should consider which item she values more

Step 4: Consider remaining money impact

Books leave more money ($7 vs $5) for future purchases

✓
Emma can choose either option, but books leave more remaining money
Correct Answer:

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

Key Concepts:

• 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

Answer Key Concepts & Solution Patterns
Money Available - Expenses = Remaining Money
Financial Decision Formula
💰
Assess
Money available
📊
Plan
Make choices
💸
Execute
Take action
📈
Review
Check results
🔍
Read
📝
Identify
🧮
Calculate
✅
Verify
Identify
Analyze
Calculate
Answer
Save
Keep money
For later
Spend
Use money now
For needs/wants
Share
Give money
To help others
Answer Key Pattern: Always show work and explain reasoning.
Solution Structure: Identify → Calculate → Verify → Answer.
Answer Key: Exercises 4 to 5
4 Budgeting Decision Solution
Original Question
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?
Problem Type:

Budgeting: Planning how to allocate money across multiple purposes

Income
$30
Total Commitments
$27
Remaining
$3
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 realism

Since $27 < $30, the plan is realistic

Step 5: Consider buffer amount

$3 buffer provides flexibility for unexpected expenses

✓
Alex's plan is realistic with $3 remaining
Correct Answer:

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

Key Concepts:

• Budget planning: Plan expenses before spending

• Realistic planning: Total expenses must not exceed income

• Buffer provision: Keep some money for unexpected needs

5 Priority Decision Solution
Original Question
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.
Problem Type:

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

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

Maya has $20

Step 2: Categorize options

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

Step 3: Check affordability

Both options are affordable: $15 ≤ $20 ✓, $12 ≤ $20 ✓

Step 4: Evaluate importance

Backpack is essential for school, toy is optional

Step 5: Consider consequences

Without backpack, Maya struggles at school; without toy, she's fine

Step 6: Make final decision

Choose backpack due to its necessity

Step 7: Calculate remaining money

$20 - $15 = $5 remaining

✓
Maya should buy the backpack for $15 and have $5 remaining
Correct Answer:

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

Key Concepts:

• Need vs Want: Prioritize needs over wants

• Consequence analysis: Consider impact of each decision

• Value assessment: Choose based on importance and necessity

Solution Verification Guide: Checking Your Work
Verify → Check → Confirm → Validate
Solution Verification Process
Solution Verification Steps:

Step 1: Check that your answer makes sense in the context of the problem

Step 2: Verify that your calculations are correct

Step 3: Confirm that your answer addresses all parts of the question

Step 4: Validate that your solution follows logical reasoning

Verification Checklist:
  1. Read again: Did you answer the question that was asked?
  2. Check math: Are all calculations correct?
  3. Verify units: Do you have the correct units (dollars, etc.)?
  4. Reasonableness: Does your answer make sense?
  5. Completeness: Did you address all parts of the question?
Tip 1: Always reread the original problem to make sure you answered the right question.
Tip 2: Double-check your arithmetic, especially when adding or subtracting money.
Tip 3: Make sure your answer includes the dollar sign ($) when dealing with money.
Tip 4: Ask yourself if your answer is reasonable given the situation described.
Common Verification Errors: Arithmetic mistakes, misreading the question, forgetting units.
Verification Best Practices: Work backwards from your answer, use estimation.
Answer Key Quality Standards:

• Solutions must show all steps clearly

• Explanations must be age-appropriate

• Answers must include proper units

• Reasoning must be logical and complete

• Verification steps must be included

Questions & Answers

Question: How do I know if my answer is correct when solving financial decision problems?

Answer: Here's how to verify your financial decision answers:

  1. Check your math: Redo the calculations to make sure they're correct
  2. Look at the problem: Make sure you answered exactly what was asked
  3. Reasonableness: Ask yourself if the answer makes sense (can you have negative money?)
  4. Units: Make sure you included dollar signs when needed
  5. Logic: Does your decision follow logically from the information given?

For example, if you calculated that someone has $20 remaining but started with only $15, you made a mistake!

Question: How can I help my child check their work on financial decision problems?

Answer: Here are ways to help your child verify their answers:

  • Read the problem together: Make sure they understood what was asked
  • Check the steps: Go through their work to see if they missed any steps
  • Estimate first: Ask them to estimate the answer before calculating
  • Work backwards: If they got $5 remaining, check if starting amount minus expenses equals $5
  • Use real money: Count out actual coins/bills to verify calculations

Encourage your child to always ask themselves: "Does this answer make sense?"

Question: What are some common mistakes students make in financial decision problems?

Answer: Common mistakes include:

  • Arithmetic errors: Simple addition or subtraction mistakes
  • Misreading: Not understanding what the question is asking
  • Forgetting units: Not including dollar signs in the answer
  • Logical errors: Saying someone has negative money remaining
  • Incomplete answers: Not addressing all parts of multi-part questions
  • Skipping steps: Not showing work clearly

Teach students to always check their work and show all steps. Practice with real-life scenarios helps with understanding.