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9th grade · Social Studies · Unit 6 of 7

Money Smarts

Pay, interest, credit and risk

What your child practices

Personal finance: gross and net pay, simple and compound interest, the Rule of 72, discounts, credit cards and credit scores, budgets and emergency funds, banks and credit unions, insurance, and spreading risk across investments.

Maine Learning Results learning standard: Personal Finance · saving, investing and managing money, consumer credit, and strategies for money and risk management

How we explain it

Children can open this short lesson before they practice.

  1. Net (take-home) pay = gross pay − what is withheld. Sale price = price − the discount.
  2. Compound interest earns interest on interest. Rule of 72: years to double ≈ 72 ÷ the rate.
  3. Pay bills on time for a good credit score; keep an emergency fund; spread risk.

Example: You earn $15 an hour for 20 hours, and 10% is withheld. What is your take-home pay? Gross: $15 × 20 = $300. 10% of $300 is $30. $300 − $30 = $270. Answer: $270

Money Smarts in Maine

In the Maine Learning Results, this is unit 6 of 7 in 9th grade Social Studies, after How the Nation Governs and before Markets & the Economy.

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: Maine Department of Education

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

    A 529 plan is designed to help families save for…

    • education
    • groceries
    • vacations

  2. Question 2

    You earn $15 an hour for 20 hours. About 15% is taken for taxes. What is your take-home pay?

    • $45
    • $255
    • $300

  3. Question 3

    Simple interest on $1,000 at 5% a year for 2 years is…

    • $100
    • $50
    • $1,100

  4. Question 4

    Using the Rule of 72, about how long does money take to double at 9% a year?

    • about 8 years
    • about 63 years
    • about 16 years
    • about 9 years

  5. Question 5

    A jacket costs $120 and is 20% off. What is the sale price?

    • $96
    • $144
    • $100
    • $24

  6. Question 6

    You earn $15 an hour for 30 hours, and 10% is withheld for taxes. What is your take-home pay?

    • $405
    • $450
    • $45
    • $495

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