💰 Part 1: Understanding Borrowing

1. What does it mean to "borrow" money?

2. Which of these are common reasons people borrow money? (Check all that apply)

To buy a house

To pay for university education

To buy expensive clothes

To start a business

To buy a car for work

3. What is interest?

The original amount you borrow

The cost of borrowing money

The time it takes to pay back a loan

A type of bank account

4. Fill in the blanks:

When you borrow money, you become the _____________ and the bank or lender becomes the _____________.

🏦 Part 2: Types of Borrowing

5. Match each type of borrowing with its best description:

Credit Card

Personal Loan

Mortgage

Student Loan

Money borrowed to buy a house

Flexible borrowing for everyday purchases

Fixed amount borrowed for specific purpose

Money borrowed to pay for education

6. Which type of borrowing typically has the highest interest rate?

Mortgage

Credit card

Student loan

Personal loan

✅ Part 3: Good Debt vs Bad Debt

7. Explain the difference between "good debt" and "bad debt":

8. Classify each borrowing scenario as Good Debt (G) or Bad Debt (B):

_____ Borrowing $500 to buy designer shoes

_____ Taking out a mortgage to buy your first home

_____ Using a credit card to pay for a holiday

_____ Getting a student loan to study at university

_____ Borrowing money to buy tools for your trade business

9. What are three things a bank might check before approving someone for a loan?

Borrowing Basics Worksheet

Borrowing Basics Worksheet

💰 Part 1: Understanding Borrowing

🏦 Part 2: Types of Borrowing

✅ Part 3: Good Debt vs Bad Debt

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