Types of Credit Unit

Students will be able to:

• Identify the major types of credit and their characteristics 
• Understand the three basic components of lines of credit: principal, interest rate, and term
• Define net worth and how it is calculated

Students will be able to

• Enumerate the differences between debit, prepaid debit, and credit cards
• Identify factors to consider when applying for a credit card 
• Explain how interest is charged and how to avoid or minimize it
• Understand how carrying a balance on a credit card and making only the minimum payment over time can lead to a cycle of debt

Students will be able to:

• Interpret data to understand what types of debt the average American household has
• Differentiate between amortized installment loans and revolving credit lines
• Read an amortization table and understand how the payments are structured
• Describe how Buy Now, Pay Later plans work

Students will be able to: 

• Calculate how much an auto loan will cost given special offers as well as standard factors such as down payment, APR, and term
• Compare auto loan offers and decide how they fit within your budget

Students will be able to:

• Identify the major types of credit and their characteristics 
• Understand the three basic components of lines of credit: principal, interest rate, and term
• Define net worth and how it is calculated

Students will be able to:

• Enumerate the differences between debit, prepaid debit, and credit cards
• Identify at least 3 ways a young adult can gain access to a credit card, even before they are 21
• Read a Schumer Box

Students will be able to:

• Explain why a person may need or want to use credit 
• Explain how a credit card works in terms of making purchases and managing payments
• Understand how interest is charged and how to avoid or minimize it

Students will be able to:

• Interpret data to understand what types of debt the average American household has
• Differentiate between amortized installment loans and revolving credit lines
• Read an amortization table and understand how the payments are structured
• Describe how Buy Now, Pay Later plans work

Students will be able to: 

• Calculate how much an auto loan will cost given special offers as well as standard factors such as down payment, APR, and term
• Compare auto loan offers and decide how they fit within your budget

Students will be able to

• Explain what a mortgage is and why most Americans require one to finance a home
• Use a mortgage calculator to explore how downpayment, credit score, interest rate, and term all impact the total cost of buying a home
• Distinguish between fixed- and adjustable-rate mortgages

Students will be able to

• Explain what a payday loan is and how it can cause users to fall into a cycle of debt 
• Identify what financial need payday lenders are meeting and why consumers use payday loans
• Compare the price of borrowing money using various loan and credit products

Students will be able to:

• Describe the difference between good debt and bad debt
• Discuss when to use and when to avoid credit
• Explain how Buy Now Pay Later services can impact their financial well-being
• Decide what type of credit to use when faced with a financial need