**Finance and Responsible Lending**

This lesson plan will teach high school students the role of banks, and the decisions they make to determine when to lend money. Specifically, students will learn about the components of creditworthiness, including how banks might decide who it is safe to lend money to. This lesson plan will teach high school students the basics of credit risk. As an extension activity, students can do research into what kind of business they might like to have one day, and how to position it to be creditworthy.

**Grade Level:**
Grades 9-12

**Time Allotment:**
3 classes at 45 minutes per class

**Subject Matter: **
Math, Finance, Economics

**Learning Objectives**

**Students will:**
- Discuss the role of banks.
- Analyze how banks provide services through lending money.
- Learn the basic concepts of credit and interest rates.
- Research the basics of creditworthiness.
- Learn how to analyze creditworthiness in lending.

**Standards**

**1. National Council of Teachers of Mathematics
Principles and Standards for School Mathematics**
**Problem Solving**
- Build new mathematical knowledge through problem solving;
- Solve problems that arise in mathematics and in other contexts;
- Apply and adapt a variety of appropriate strategies to solve problems;
- Monitor and reflect on the process of mathematical problem solving.

**Communication**
- Organize and consolidate their mathematical thinking through communication;
- Communicate their mathematical thinking coherently and clearly to peers, teachers, and others;
- Analyze and evaluate the mathematical thinking and strategies of others;
- Use the language of mathematics to express mathematical ideas precisely.

**Representation**
- Create and use representations to organize, record, and communicate mathematical ideas;
- Select, apply, and translate among mathematical representations to solve problems;
- Use representations to model and interpret physical, social, and mathematical phenomena.

**2. Mid-continent Research for Education and Learning (McREL)**
**Benchmarks for Economics**
**Standard 2**

Understands characteristics of different economic systems, economic institutions, and economic incentives

**Standard 7**

Understands savings, investment, and interest rates

This lesson was prepared with the support of Citi Foundation.

Written by:

Melissa Donohue