Today I want to talk about some of my favorite ways to teach students about credit and credit cards. I currently live in a college town, and every August I start seeing flyers and ads around town attempting to lure kids to sign up for credit cards. I once saw a line down the street for a pizza place, wondering what was going on. When I drove past, I noticed the signs. ‘Free Pizza with Credit Card Sign Up.’ And it was working.
I’m all about teaching practical life skills in high school, and credit is one of those lessons that, if students even know just a little bit… could save them a ton of money (and stress).
Here are some of my favorite resources for helping students leave high school just a little bit more knowledgeable.
1. The Basics
There are a few basic concepts students need to understand to make good choices when it comes to credit cards. The difference between credit and debit, credit scores, credit card disclosures, and interest rates are the big ideas that come to mind. This lesson will guide through all of these topics and also includes station activities to give students practice. You can grab this lesson here!
2. Understanding a Credit Card Statement
There’s a lot of information in a statement, and if you can’t understand it, it could cause you some problems. This lesson provides a quick one-hour intro to get students fluent in understanding a statement. Google slides make for easy teaching, and it includes a scavenger hunt activity for extra practice. You can find this activity here.
3. Choosing a Credit Card
There are a lot of choices out there, and if students aren’t aware of what to look for, they may find themselves in line for that free pizza with a credit card sign-up. This activity has students researching actual credit cards, interest rates, and more. I love independent research activities because not only do students need to understand the options available to them, but they also need to learn how to find this information for themselves as adults. You can find this activity here.
4. Consequences of Making the Minimum Payment
It’s easy to fall into the trap of making a purchase that promises you’ll only have to pay $25 a month. Companies are supposed to disclose how long it will take to pay off a purchase this way, but it’s often in the teeny tiny fine print. Students need to understand this so they don’t fall into never-ending debt. This activity includes step-by-step instructions for students to set up a spreadsheet to find out how long it will take them to pay off an item of their choosing while only making the minimum payment on a store card.
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