Synergy Cents With Penny D. Pelican | Penny Explains Types of Loans

Hi friends! Have you ever wondered how people buy things that are really expensive? After all, it would take a really long time to save up enough money to buy a house.

When people need to buy something that they don’t have enough money for, they can get a loan from the bank.

A loan is an agreement between a customer and the bank that says the bank will let the customer borrow money. The customer agrees to pay back the full amount a little at a time and pay the bank a little extra money. That extra money is known as interest. 

Some adults may get a loan to buy a house, a car or to open a business. Some people will also borrow money to go to college. It’s important to only get a loan for things you really need and if you have enough money to make payments every month to pay the bank back.

Types of Loans

Read each scenario below and match it to the type of loan they would need. Use the pictures with the loan types if you need a hint.

1. Judy just graduated from high school and is looking to attend Nicholls State University.
2. Brad and Olivia were just married. They are ready to purchase their first home.
3. Brandon’s car just broke and cannot be fixed. He is ready to buy a new one.
4. Devonte wants to purchase a boat, so he and his family can fish on the weekends.
5. Tasha has decided to open a cake shop, but she needs money to purchase equipment.

Pumpkin Maze

Can you make your way through the pumpkin maze to the bucket of candy?