Module Six

Topic: Credit

Debt is a Serious Topic!

Module 6 Overview

Introduction/ Lesson: Instructors will explain the basics of credit (short term loan, what helps you build credit, etc.). This lesson is highly based on participant involvement and will vary greatly based on how quickly participants receive an understanding of the key concepts of credit. The main focus of the group discussion will be the “Credit Cards as a Young Adult” discussion prompts from Next Gen Personal Finance (see attached). Visual aids and questions will also be explored from NerdWallet’s “Understanding the Schumer Box” infographic and the “Is it Easy to Get a Loan?” activity sheet from the Next Gen Personal Finance Program (see attached). (10-20 minutes)

Exercise: Participants will break into smaller groups of between 5 and 15 students (depending on how many student instructors/participants are present at each section) and student instructors will lead small group discussions. In these discussions, they will continue the above discussion (if necessary) to ensure students understand these vital concepts. Student instructors will also lead students in completing the “ANALYZE: Understanding Amortization” activity from the Next Gen Personal Finance Program (see attached) (15-20 minutes)

Conclusion: Student instructors will guide participants through a full group discussion in which they recap the day’s lesson and key concepts from each activity. The session will conclude with a summary of what the students have learned from completing this activity. (10 minutes)

Post-Test (30 minutes) – During the wrap-up event, participants will be asked to complete a 25- question multiple choice post-test measuring their knowledge of the topics the course has covered. A calculator will be provided to aid students in the completion of any mathematical calculations. The post-test will also include a short survey measuring the participants’ perceptions of the course.

Discussion Questions

  • Do you think it’s a good idea for high school students to have a credit card?
  • What about college students? Adults? Explain why you feel this way.
  • What are important considerations for a young adult in choosing whether or not to open a credit card?
  • How does using a credit card affect the total cost of purchases

Visual

The Schumer Box

Lesson 1

Is it Easy to Get a Loan?

Lesson 2

ANALYZE: Understanding Amortization

Janet just graduated from college, has a job she’s scheduled to begin in 3 months, and has decided to treat herself to 6 weeks of travel across South America before she buckles down and starts working full-time. To do the trip, she’s thinking of applying for a personal loan of $3,500, and the bank she uses for her checking and savings account has offered her an interest rate of 24%. She has a goal of paying off the trip within two years, so she uses a Bankrate.com loan calculator and gets the following amortization schedule:

Post-Test

Please complete the following information about yourself. And then please select the best answer to each of the following questions. You may use a calculator to assist in any necessary mathematical calculations.

 

Survey

Please indicate how much you agree with each of the following statements concerning this program.