Overview | Activities
Overview: Do you ever get concerned about credit-card debt? The next time you use your credit card at a department store, restaurant, or ATM, take a step back and think about how credit works. When used carelessly, credit cards can be at the center of a personal financial crisis for consumers. High interest rates, variable Annual Percentage Rates (APRs) and extra fees compound quickly, which can lead to out-of-control debt. In honor of financial education month, this self-directed lesson will give learners the tools they need to become knowledgeable credit consumers. The companion website for the ITV program TV-411 will be used to provide learners with an interactive experience of all that credit has to offer. Cross-reference the lesson, ANALYZE THIS to review principles of graph analysis before completing this lesson.
Grade level: Adult, Pre GED
Subject Matter: Consumer Science/Home Economics, Math
Learners will be able to
- identify key terms related to personal financial matters and credit
- develop a budget and chart of personal expenditures.
New York State Education Department – Elementary, Middle, Secondary and Continuing Education
Standard 3: Health, Physical Education, & Family and Consumer Sciences – Commencement Level
- Students will understand the basics of an individual/family budget and plan to obtain/use and protect money and assets
FICO Score Estimator
Calculate your credit-worthiness using this ten question interactive tool. Your FICO score is an indicator of your current credit health since it is an evaluation of your credit history.
Free Credit Report Online
https://www.annualcreditreport.com/cra/index.jsp or http://www.experian.com/reportaccess/
Use one of the above-referenced sites to obtain a free credit report from a secure server. Federal law grants all U.S. citizens access to a free credit report every year, although not all states can access this information online. If you have been denied credit, you are automatically allowed free access to your report. Take advantage of these opportunities to become informed—it is not just a privilege, it is your right!
TV411: Using Credit Cards Wisely (Flash plug-in required) http://www.tv411.org/lessons/cfm/math.cfm?str=math&num=21&act=1
This interactive lesson reviews percentages and decimals while teaching valuable information related to credit cards.
Sample Debt Busting Budget
Blank Debt Busting Budget
Make copies of necessary handouts (Note: If your school or classroom is not equipped to handle multimedia, the video script and graphics may be downloaded and printed as handouts.)