Credit Savvy: Understanding Loans
Learn about credit scores and loans
This lesson educates 11th-grade students about credit scores and loans through engaging case studies and simulations. Students will learn the importance of maintaining a good credit score and the implications of borrowing responsibly. This lesson is crucial as it equips students with financial literacy skills that are essential for their future financial well-being.
Learn about credit scores and loans
Case Study Handout, Loan Simulation Worksheet, Discussion Questions, and Pens and Paper
Step 1
Introduction to Credit Scores
10 mins
- Begin with a brief discussion on what credit scores are and why they are important.
- Ask students if they have heard of credit scores and what they know about them.
- Explain the factors that affect credit scores, such as payment history and credit utilization.
Step 2
Case Study Analysis
15 mins
- Distribute the Case Study Handout to students.
- Divide students into small groups and assign each group a case study.
- Instruct groups to read and discuss their case study, focusing on the credit score implications.
- Have each group present their findings to the class.
Step 3
Loan Simulation Activity
20 mins
- Hand out the Loan Simulation Worksheet.
- Explain the rules of the simulation, where students will make decisions about taking out loans.
- Allow students to work individually or in pairs to complete the simulation.
- Discuss the outcomes and what students learned about responsible borrowing.
Step 4
Class Discussion
10 mins
- Use the prepared discussion questions to facilitate a class discussion.
- Encourage students to share their thoughts on how credit scores and loans impact financial decisions.
- Discuss strategies for maintaining a good credit score and borrowing responsibly.
- Summarize the key points of the lesson.
- Ask students to reflect on what they learned and how they can apply it in real life.
- Provide a brief overview of the next lesson topic.
