Students should understand the concept of credit. They should also understand that there is a cost to using credit–you have to repay what you borrowed plus interest on what you borrowed.
Use The Mint About Cash or Credit as a shared reading. Project the text and as students read, ask them to search for answers to the following questions: What are credit cards? Why are they used? What is interest? and When people use credit what happens now and what happens later? You can also use Hands on Banking Credit. |
USING CREDIT SS.4.FL.4.1 Discuss that interest is the price the borrower pays for using someone else's money. SS.4.FL.4.2 Identify instances when people use credit, that they receive something of value now and agree to repay the lender over time, or at some date in the future, with interest. |
Decisionomics Activity About Using Credit
DECISIONOMICS ACTIVITY: Use the Secret Millionaires Club comic on Credit Cards or webisode on Credit Cards. The episode is called: The Trouble With Credit Cards. This activity also uses the SMC activity on credit so you should print the Pay Less Now or More Later worksheet. As you are reading or viewing closely, answer the compelling question: What is the trouble with credit?
Planning and Goal Setting: In the text, the characters considered the advantages and disadvantages of each kind of payment method and the types of purchases they were making. Answer some of these discussion questions:
Assessing Outcomes: Think about your decision for now. How could this change in the future?
Planning and Goal Setting: In the text, the characters considered the advantages and disadvantages of each kind of payment method and the types of purchases they were making. Answer some of these discussion questions:
- What were the advantages and disadvantages of the different payment methods for the different purchases? (some examples of using credit are for homes, cars, airline tickets, and other online purchases.
- Explain how interest is applied to credit card balances. Complete the SMC activity on credit. After students finish the Pay Less Now or More Later, they should explain why Jesse pays more than Mack for the same telescope (They should discuss that Jesse used a credit card so he paid more because the card charges interest if he does not pay in full each month).
- Students plan for a big purchase they would like their family to make.
Assessing Outcomes: Think about your decision for now. How could this change in the future?