Financial Fitness

Zabrina Walker

Tier 1

Lesson Plan

Financial Fitness

Understand how to manage credit, comprehend loans, and avoid debt

In this lesson, students will learn the basics of managing credit, understanding loans, and avoiding debt. They will explore different credit management strategies, understand the implications of taking out loans, and learn practical tips to avoid falling into debt. The lesson includes interactive scenarios and discussions to reinforce their understanding.

Audience

Leaders (ages 13-18)

Time

30 minutes

Approach

Understand how to manage credit, comprehend loans, and avoid debt

Materials

Credit Management Worksheet, Loan Scenario Cards, Debt Management Tips Handout, Pens/Pencils, and Calculator

Step 1

Introduction to Financial Fitness

5 mins

Begin with a brief explanation of what financial fitness means, focusing on managing credit, understanding loans, and avoiding debt.
Discuss the importance of financial health and its impact on overall well-being.

Step 2

Managing Credit

5 mins

Discuss the key aspects of managing credit: credit score, using credit cards responsibly, and the importance of timely payments.

Step 3

Understanding Loans

5 mins

Explain the basics of loans, including different types of loans (student loans, car loans, personal loans).
Discuss the concept of interest and how it affects the total amount paid over time.
Use a calculator to show examples of loan payments and interest calculation.

Step 4

Interactive Activity: Loan Scenarios

10 mins

Distribute the loan scenario cards to small groups of students.
Each group will read their scenario and discuss the pros and cons of taking the loan.
Groups will present their scenarios and discussions to the class.

Step 5

Debt Management Strategies

4 mins

Distribute the debt management tips handout.
Review key points on how to avoid falling into debt, such as budgeting, avoiding unnecessary loans, and understanding credit terms.
Discuss the importance of seeking help if facing financial difficulties.

Step 6

Closure

1 min

Summarize the main points covered in the lesson.
Encourage students to apply the financial fitness strategies to their own lives.
Distribute the exit ticket for students to complete.

Worksheet

Credit Management Worksheet

A worksheet for students to explore and record their understanding of credit management.

| Credit Aspect | Details/Notes |
|------------------------|-----------------------------|
| Credit Score | |
| Responsible Use | |
| Timely Payments | |
| Credit Card Management | |
| Keeping Debt Low | |

Worksheet

Loan Scenario Cards

Cards with different loan scenarios for students to analyze and discuss.

### Scenario 1: Student Loan for College

Loan Amount: $20,000
Interest Rate: 5%
Repayment Period: 10 years

Scenario 2: Car Loan for a Used Car

Loan Amount: $10,000
Interest Rate: 7%
Repayment Period: 5 years

Scenario 3: Personal Loan for Home Renovation

Loan Amount: $15,000
Interest Rate: 6%
Repayment Period: 3 years

Worksheet

Debt Management Tips Handout

A handout with practical tips for avoiding debt.

- Create and stick to a budget.

Use credit cards responsibly and pay off the balance each month.
Avoid unnecessary loans and large purchases on credit.
Understand credit terms and conditions before agreeing to a loan.
Set up an emergency fund to cover unexpected expenses.
Seek financial advice if you are facing financial difficulties.

Worksheet

Lesson Exit Ticket

A short survey to gauge students' understanding and the impact of the lesson.

- I understand how to manage credit responsibly.

No
Yes
I plan to apply the loan strategies I learned in the future.
- No
- Yes
I feel more confident in avoiding debt after this lesson.
- No
- Yes