Types of Credit Lessons

/Types of Credit Lessons
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Types of Credit Lessons

**Want only activities on types of credit? View them here.

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Students will be able to:

  • Correctly use fundamental vocabulary related to credit and lending
  • Explain how loan amortization and payments work
  • Understand how principal, interest rate, and term are critical components to evaluating credit options
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In this lesson, students will be able to:

  • Explain how a credit card works in terms of making purchases and managing payments
  • Read a Schumer box and identify how terms of the card impact total cost of purchases
  • Understand how interest is charged and how to avoid or minimize it
  • Read a credit card statement
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In this lesson, students will be able to:

  • Establish criteria for choosing a credit card, based on the factors important to their needs
  • Recognize and avoid marketing schemes that might lead to bad decisions
  • Identify alternative routes to establishing credit, aside from opening their own credit card account  
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In this lesson, students will be able to:

  • Explain the fundamental features of a personal loan, including where to find one and how to apply
  • Explore the peer-to-peer lending market as an alternative to traditional banks
  • Understand the potential pitfalls of borrowing from family and friends, a personal 401(k), or a payday lender
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In this lesson, students will be able to:

  • Utilize knowledge and strategies to get the best possible financing terms (that meet their individual needs and budget) for a new or used car
  • Explain the difference between a car loan and lease as well as advantages and disadvantages of each
  • Have a backup plan if they find themselves unable to afford their car payments
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In this lesson, students will be able to:

  • Make informed decisions about how much student loan debt to take on, based on college costs and projected salary upon graduation
  • Explain the difference between private and Federal loans, and the various types of Federal loans, and when to use each
  • Select the best repayment option to minimize total amount paid while also keeping monthly payments reasonable within a budget
  • Learn strategies for avoiding default, including whether consolidation is an appropriate option

 

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In this lesson, students will be able to:

  • Understand how down payment, interest rate, term, loan type, and amortization table work together to impact overall mortgage payments
  • Recognize the pros and cons of fixed- and adjustable-rate mortgages
  • Determine whether a home equity loan or line of credit is a viable loan option
  • Decide whether renting or buying makes the most sense
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