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6th grade · Social Studies · Unit 9 of 9

Money Choices

Budgets, saving, credit and trade-offs

What your child practices

Personal finance for Grade 6: income and expenses, needs and wants, budgets and savings goals, opportunity cost, trade-offs and cost-benefit thinking, interest, debit and credit cards, emergency funds, and planning for costs like winter fuel.

Alaska content standards learning standard: SS.6.4.12.1; SS.6.4.12.2; SS.6.4.12.3; SS.6.4.12.4 · methods of personal finance, planning informed financial decisions, cost-benefit analysis, trade-offs and opportunity cost, and how choices affect financial security

How we explain it

Children can open this short lesson before they practice.

  1. A need is something you must have; a want is nice to have.
  2. Opportunity cost is what you give up when you choose. Save for emergencies and specific goals.
  3. A credit card is borrowing money you must pay back.

Example: You can buy a game or a book, not both. You pick the game. What is the opportunity cost? Opportunity cost is the next-best choice you gave up. You gave up the book. Answer: the book

Money Choices in Alaska

In the Alaska content standards, this is unit 9 of 9 in 6th grade Social Studies, after Local, Tribal & State Government.

Gradelings describes a child's practice on this unit as Beginning, Approaching, Meeting or Exceeding (Four practice steps). That reflects practice, not a report-card mark: the teacher decides the mark.

Source: Alaska Department of Education and Early Development

Sample questions

A taste of this unit. In the app, questions change every time and get easier or harder to match your child.

  1. Question 1

    Opportunity cost is…

    • the price on a tag
    • money you find
    • the next best thing you give up when you choose

  2. Question 2

    A savings goal should be…

    • as vague as possible
    • specific, with an amount and a date
    • kept secret from yourself

  3. Question 3

    A budget is…

    • a plan for how to earn, spend and save money
    • a type of bank
    • a list of chores

  4. Question 4

    Why is it smart to save part of what you earn?

    • savings lose all value
    • banks require you to spend it
    • to be ready for emergencies and future goals

  5. Question 5

    Why can buying on credit cost more than paying cash?

    • interest is added when you don't pay the full balance
    • stores charge credit users double
    • credit cards are free

  6. Question 6

    Which choice builds financial security?

    • spending less than you earn and saving the rest
    • borrowing for every want
    • never tracking spending

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