Identify the costs of using various types of credit. Debt: Day 1 Identify the costs of using various types of credit.

Day 1: Timeline Warm-up: Warm Up: 5 min. Video 1.1: 15 min. Key Terms: 20 min. 1,2,3 Cool Down: 5 min. Inequality for All: 10 min. Why is debt a bad thing, can it be a good thing? If so, how?

Key Terms Annual fee: A yearly fee that’s charged by the credit card company for the convenience of the credit card Annual percentage rate (APR): Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan Credit card: Type of card issued by a bank that allows users to finance a purchase Credit report: A detailed report of an individual’s credit history Credit score: A measure of an individual’s credit risk; calculated from a credit report using a standardized formula Debt snowball: Preferred method of debt repayment; includes a list of all debts organized from smallest to largest balance; minimum payments are made to all debts except for the smallest, which is attacked with the largest possible payments Depreciation: A decrease or loss in value Introductory rate: An interest rate charged to a customer during the early stages of a loan; the rate often goes up after a specified period of time Loan term: Time frame that a loan agreement is in force, and before or at the end of which the loan should either be repaid or renegotiated for another term Tax deduction: An expense, such as a charitable contribution, that can be deducted from one’s taxable income * Note: You may also want to review the following terms from Chapter 1: consumer, credit, debt, interest and loan

1,2,3 Cool Down One sentence that summarizes the main idea of today’ s lesson. Two of the most important details. Three questions related to the lesson to quiz your classmates.

Identify the costs of using various types of credit. Debt: Day 2 Identify the costs of using various types of credit.

Day 2: Timeline Warm-up: Warm Up: 5 min. Video Part 1.2: 15 min. Hidden Cost of Credit Activity: 35 min. Groups of 3 Explain how debt is a consumer product.

Evaluate and refute the myths associated with debt. Debt: Day 3 …Evaluate and refute the myths associated with debt.

Day 3: Timeline Warm-up: Why are teenagers and college students an enticing market for credit card companies? Give an example of how credit cards are marketed to teens and college students. Warm Up: 5 min. Video 2.1: 10 min. Video 2.2: 10 min. Realities of Cash Advances Activities: 20 min. Computers & Partners Inequality for All: 10 min.

Debt: Day 4 Apply systematic decision making to identify the most cost-effective option for purchasing a car.

Day 4: Timeline Warm-up: Warm Up: 5 min. Video 2.3: 15 min. True Cost of Ownership Activity: 35 min. Computers Partners List the negative effects of using credit as a financial tool.

Debt: Day 5 Identify various types of mortgage loans and the most cost-effective option for purchasing a home.

Day 5: Timeline Warm-up: Warm Up: 5 min. Video 2.4: 10 min. Drive Free Activity: 25 min. Explain any similarities and differences that exist between the credit card and debit card.