For teachers and youth groups

The Home & Money Challenge: free class competition

Printable question sheets for three age groups, with answer keys, teaching notes and a winner's certificate. Run it as a class competition in about 20 minutes, or as part of a lesson on money and homes.

Teaching notes

How to run the competition (about 20 minutes)

Print the sheet for your grade (one per pupil or per team of 2 to 3).
Give the class 15 minutes. Calculators are fine for the bonus question in grades 6 to 12.
Mark with the answer key: 1 point per question, 2 points for the bonus (12 points in total).
Tie-break: the fastest correct bonus answer.
Award the certificate, and go over the answers together. That discussion is where most of the learning happens.

Key ideas to teach first (10 to 15 minutes)

Needs vs wants, and saving: a home is a need; saving a little regularly adds up.
Renting vs owning: rent pays to live in someone else's home; a mortgage is a loan to buy your own, paid back over many years.
Interest: the price of borrowing. Longer loans usually mean more interest in total.
Credit: paying on time builds a good credit score, which makes borrowing cheaper later.
The real cost of a home: the monthly payment plus taxes, insurance and upkeep.

Vocabulary

Mortgage, principal, interest, down payment, credit score, budget, equity, property tax, homeowners insurance, escrow, APR, DTI (debt-to-income ratio). Every word is explained in plain English in our free dictionary.

Discussion questions

Why might someone choose to rent instead of buy?
Why does a bank charge interest?
What could you do now to have a good credit score at 25?
(Grades 9 to 12) Why might a 15-year mortgage save money even though the monthly payment is higher?

Extension activities

Grades 3 to 5: plan a savings goal: how many weeks of saving $5 to buy something that costs $60?
Grades 6 to 8: make a monthly budget for a first apartment (rent, food, phone, transport, savings).
Grades 9 to 12: use our rent vs buy and affordability calculators to compare renting and buying for a starting salary.

Online version

Pupils can also play the Home & Money Quiz online: "Juniors" (11 and under) uses a first name or nickname only and asks for no contact details; "Teenagers" (12 to 18) asks for an email only from age 13. Florida high schools teach personal financial literacy, and these sheets make a useful warm-up or review.

The Home & Money Challenge · Grades 3 to 5 (ages 8 to 10)

Junior challenge

Name: ______________________ Class: __________ Score: ____ / 12

What is a mortgage?
1. A loan used to buy a home
2. A type of house
3. A bank account for kids
4. A moving truck
Money you put away to use later is called…
1. Rent
2. Savings
3. A bill
4. A tip
Rent is money you pay to…
1. Buy a car
2. Live in a home someone else owns
3. Go to the movies
4. Open a bank account
A down payment is…
1. The last payment on a loan
2. Money you get back from the bank
3. The part of the price you pay at the start
4. A payment for groceries
If you save $5 every week, how much will you have after 10 weeks?
1. $15
2. $50
3. $100
4. $500
Which of these is a NEED, not a want?
1. A video game
2. Candy
3. A safe place to live
4. A new toy
Interest is…
1. Extra money you pay for borrowing money
2. A kind of tax on toys
3. Money you find on the ground
4. The price of a house
A Realtor helps people…
1. Fix cars
2. Buy and sell homes
3. Teach school
4. Grow food
A home costs $200,000 and the family pays 10% down. How much is the down payment?
1. $2,000
2. $10,000
3. $20,000
4. $200,000
Which is the best way to save for something big?
1. Spend it all now
2. Put a little away every week
3. Wait and hope
4. Borrow from a friend

Bonus: Write down 3 things a family pays for every month to live in a home.

Free from HomesCalculator.com · Educational information only.

Answer key for teachers

Answer key: Junior challenge (Grades 3 to 5 (ages 8 to 10))

A: A loan used to buy a home
B: Savings
B: Live in a home someone else owns
C: The part of the price you pay at the start
B: $50
C: A safe place to live
A: Extra money you pay for borrowing money
B: Buy and sell homes
C: $20,000
B: Put a little away every week

Bonus: Any three, e.g. rent or mortgage, electricity, water, internet, home insurance, HOA fees.

The Home & Money Challenge · Grades 6 to 8 (ages 11 to 13)

Middle school challenge

Name: ______________________ Class: __________ Score: ____ / 12

In a mortgage, the "principal" is…
1. The head of the bank
2. The amount of money borrowed
3. The interest rate
4. The monthly payment
A credit score shows…
1. How much money you have
2. How well you have paid back money you borrowed
3. Your grades at school
4. How many credit cards you own
How many monthly payments are there in a 30-year mortgage?
1. 30
2. 120
3. 360
4. 3,000
Which usually costs more in total interest for the same loan?
1. A 15-year mortgage
2. A 30-year mortgage
3. They cost the same
4. Neither has interest
Property taxes on a home are paid to…
1. The Realtor
2. The local government (county)
3. The neighbors
4. The builder
Homeowners insurance helps pay for…
1. Groceries
2. Damage to the home from things like fire or storms
3. The mortgage interest
4. New furniture you buy
Rent is $1,500 a month. How much is that in one year?
1. $1,500
2. $15,000
3. $18,000
4. $150,000
A budget is…
1. A plan for spending and saving money
2. A type of loan
3. A bank fee
4. A credit card
A home is worth $300,000 and the owner still owes $200,000. How much equity does the owner have?
1. $500,000
2. $300,000
3. $200,000
4. $100,000
Paying bills late can…
1. Raise your credit score
2. Lower your credit score
3. Make loans cheaper
4. Do nothing at all

Bonus: A home costs $250,000. The buyer pays 5% down. (a) How much is the down payment? (b) How much is borrowed?

Free from HomesCalculator.com · Educational information only.

Answer key for teachers

Answer key: Middle school challenge (Grades 6 to 8 (ages 11 to 13))

B: The amount of money borrowed
B: How well you have paid back money you borrowed
C: 360
B: A 30-year mortgage
B: The local government (county)
B: Damage to the home from things like fire or storms
C: $18,000
A: A plan for spending and saving money
D: $100,000
B: Lower your credit score

Bonus: (a) $12,500 (b) $237,500

The Home & Money Challenge · Grades 9 to 12 (ages 14 to 18)

High school challenge

Name: ______________________ Class: __________ Score: ____ / 12

APR (annual percentage rate) is…
1. The interest rate only
2. The interest rate plus certain loan fees, shown as a yearly rate
3. The property tax rate
4. The rate your savings earn
Someone earns $5,000 a month and has $1,500 of monthly debt payments. What is their debt-to-income ratio (DTI)?
1. 15%
2. 30%
3. 50%
4. 75%
PITI stands for…
1. Price, Income, Tax, Interest
2. Principal, Interest, Taxes, Insurance
3. Payment, Interest, Title, Inspection
4. Principal, Income, Term, Insurance
On a conventional loan, private mortgage insurance (PMI) is usually required when the down payment is less than…
1. 3%
2. 10%
3. 20%
4. 50%
The minimum down payment on an FHA loan for a borrower with a 580+ credit score is…
1. 0%
2. 3.5%
3. 10%
4. 20%
An escrow account on a mortgage is mainly used to pay…
1. The Realtor's commission
2. Property taxes and homeowners insurance
3. The down payment
4. Moving costs
Making extra payments toward principal…
1. Increases the total interest paid
2. Has no effect
3. Reduces total interest and pays the loan off sooner
4. Raises the interest rate
With an adjustable-rate mortgage (ARM)…
1. The rate never changes
2. The rate can change after an initial fixed period
3. There is no interest
4. The loan must be repaid in one year
Closing costs are…
1. Fees paid to complete a home purchase, such as appraisal, title and lender fees
2. The cost of closing a door
3. Only the Realtor's fee
4. Monthly HOA dues
In Florida, the homestead exemption lowers…
1. The mortgage rate
2. Property taxes on the home you live in
3. Homeowners insurance
4. The purchase price

Bonus: A $300,000 loan at 6% for 30 years has a monthly principal and interest payment of $1,798.65. (a) How much is paid in total over 30 years? (b) How much of that is interest? (Use a calculator.)

Free from HomesCalculator.com · Educational information only.

Answer key for teachers

Answer key: High school challenge (Grades 9 to 12 (ages 14 to 18))

B: The interest rate plus certain loan fees, shown as a yearly rate
B: 30%
B: Principal, Interest, Taxes, Insurance
C: 20%
B: 3.5%
B: Property taxes and homeowners insurance
C: Reduces total interest and pays the loan off sooner
B: The rate can change after an initial fixed period
A: Fees paid to complete a home purchase, such as appraisal, title and lender fees
B: Property taxes on the home you live in

Bonus: (a) About $647,515 ($1,798.65 × 360) (b) About $347,515 ($647,515 − $300,000)

Winner's certificate

Certificate of achievement

Home & Money Champion

This certifies that

won the Home & Money Challenge with a score of ______ out of 12.

Class: ______________ Teacher: ______________ Date: ______________

HomesCalculator.com

Common questions

Is this free?

Yes. Print as many copies as you like for your class or youth group.

Do pupils need to sign up?

No. The sheets are on paper and collect no personal details. If older pupils play the online quiz, juniors use a first name or nickname only and are never asked for contact details.

Can someone visit our class?

Bill is happy to talk to classes about saving, credit and how buying a home works. Ask using the form at the bottom of the page.

Can you email me the sheets?

Yes. Use the form at the bottom of the page and we'll email you links to the sheets for the age groups you teach, plus the teaching notes and certificate.

Email me the sheets

Tell us a little about your school and we'll email you links to the sheets for your age groups, the teaching notes and the certificate, ready to print. It's free.

Would you like a guest speaker? Bill is happy to talk to classes about saving, credit and how buying a home works.

We only ask about you and your school. Nothing about pupils, ever.

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Which age groups? (choose any) Grades 3 to 5 (ages 8 to 10)Grades 6 to 8 (ages 11 to 13)Grades 9 to 12 (ages 14 to 18)

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Your next step

Play the quiz online →The Home & Money Quiz

Educational information only. This page gives general information to help you learn and plan. It is not legal, tax, financial or other professional advice, or an offer to lend. For advice on your situation, talk to a licensed professional. Terms of use