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

2. 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?

3. 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

4. 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.

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

6. 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.

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

8. 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.

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

10. 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.

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

12. 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.