The Purpose and Importance of Credit

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2

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Copyright © Texas Education Agency, 2012. All rights reserved.

DiscoveryBrainstorm 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.

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Need to Know TermsO CreditO Credit CardsO Annual FeeO Annual Percentage Rate

(APR)O Card Member AgreementO Charge-BackO Credit LineO Due DateO Finance ChargeO Fixed APRO Grace PeriodO Minimum Finance Charge

O Minimum PaymentO Over-the-limit FeeO Schumer BoxO Secured Credit CardsO Terms and ConditionsO Universal DefaultO Unsecured Credit CardsO Variable Interest RateO EquifaxO ExperianO TransUnion

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Introduction-Purpose of Assignment

SWBAT (Student Will Be Able To)

O Understand the purpose of creditO Understand the importance of credit

O Become a more educated consumer when it comes to credit and how it can both help

and hurt youO Devise personalized credit game plan

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6Copyright © Texas Education Agency, 2012. All rights reserved.

Independent Practice-1Debt 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) 7Copyright © Texas Education Agency, 2012. All rights

reserved.

Independent Practice-2My 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.

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SummaryO 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?

9Copyright © Texas Education Agency, 2012. All rights reserved.