1. Credit
Personal Finance

2. Lesson objective
SWBAT assess the function of credit within the American economy.

3. Word of the day
Credit
The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.

4. Initial activity
When would you consider signing up for a credit card and why?

5. Credit Credit Score, 2001- Fair Isaac and Company
Revolving Credit Accounts
Credit cards, amount of $ you can take out monthly
Installment Loans
Debt paid off in set minimums over time

6. Credit: Quickwrite
Is having a great deal of debt, even if you can pay it off easily, ever a safe thing?
Share Out

7. Credit: Vote With your feet
Agree (SmartBoard)/Disagree (Rear wall)/ In between (middle)
Do you need a credit card to financially support yourself in America?
Share Out/Switch positions

8. Activity 1: Jigsaw
Focus Question: How will your credit score affect your ability to borrow money in the future?
Read How Credit Scores Work
1. How are credit scores determined?
2. How can your credit score effect the price you pay for goods?
3. How can you improve your credit score?
Share Out

9. Activity 2: Individual
Focus Question: How will your credit score affect your ability to borrow money in the future?
Read A Bad Credit Score Affect A Lot More Than Credit
How can a bad credit score affect your long term financial interests?
Do you believe a bad credit score would change a boss’s opinion about hiring you despite an excellent resume?
Share Out

10. summary
Discussion:
“Credit is a system whereby a person who can't pay gets another person who can't pay to guarantee that he can pay.”
Charles Dickens
Do you agree with Dickens’ criticism of credit?