The Purpose and Importance of Credit Copyright © Texas Education Agency, All rights reserved.

2 “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non- educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, All rights reserved.

Discovery Brainstorm situations when it is okay to use credit to make a purchase/purchases. Brainstorm situations when it isn’t okay to use credit to make a purchase/purchases. 3 Copyright © Texas Education Agency, All rights reserved.

Need to Know Terms O Credit O Credit Cards O Annual Fee O Annual Percentage Rate (APR) O Card Member Agreement O Charge-Back O Credit Line O Due Date O Finance Charge O Fixed APR O Grace Period O Minimum Finance Charge O Minimum Payment O Over-the-limit Fee O Schumer Box O Secured Credit Cards O Terms and Conditions O Universal Default O Unsecured Credit Cards O Variable Interest Rate O Equifax O Experian O TransUnion 4 Copyright © Texas Education Agency, All rights reserved.

Introduction-Purpose of Assignment SWBAT (Student Will Be Able To) O Understand the purpose of credit O Understand the importance of credit O Become a more educated consumer when it comes to credit and how it can both help and hurt you O Devise personalized credit game plan 5 Copyright © Texas Education Agency, All rights reserved.

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Independent Practice-1 Debt Scenarios Given the provided scenarios, determine the following: O What kind of monthly payment will this person have to make in order to pay off their debt? (3 scenarios) AND O How many months will this person have to make payments before paying off their debt? (3 scenarios) 7 Copyright © Texas Education Agency, All rights reserved.

Independent Practice-2 My Debt Free Life Knowing what you now know about credit, create a Brochure/Flyer that will help you keep informed and be your own little guide to financial peace. 8 Copyright © Texas Education Agency, All rights reserved.

Summary O Do you understand the purpose of credit? O Do you understand the importance of credit? O Do you feel like you are more educated now on the different ways/situations credit can both help and hurt you? O Do you have a game plan for your debt free life? 9 Copyright © Texas Education Agency, All rights reserved.