Give Me Some Credit

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  • Lesson Identification and TEKS Addressed

    Cluster : Career Development

    Course : Career Portals: Middle School

  • TEKS Student Expectations

    • (5) The student understands personal financial management and recognizes the value of personal fiscal responsibility. The student is expected to:
      • (E) compare and contrast forms of credit, including credit cards and debit cards
  • Basic Direct Teach Lesson

    Instructional Objectives

    Students will:

    • describe the advantages and disadvantages to having a credit card
    • determine ways to obtain a credit card
    • summarize different types of credit and how to maintain good credit
  • Rationale

    Script:

    How many of you know someone that uses a credit card? While credit cards can be beneficial, they can also be dangerous if you don’t know how to choose the best type of credit for your needs. In order to guarantee you will be eligible for credit when it’s needed, you need to make sure you have a good credit history and know how to obtain credit.

  • Duration of Lesson

    Two 45 minute class periods

  • Word Wall

    Annual Percentage Rate (APR): Cost of the loan on a yearly rate, expressed as a percentage

    Capacity: Amount of debt a borrower is able to handle

    Capital: Valuable assets such as real estate, savings, or investments that could be used to repay credit debts if income is unavailable

    Character: Creditworthiness, demonstrated by a consumer’s history of making payments and responsible use of credit

    Collateral: Assets pledged as security for a debt

    Credit: A term used to describe any situation in which goods, services or monies are received in exchange for a promise to pay a definite sum at a later date

    Credit Limit: The maximum amount that can be borrowed

    Debt: Something that is owed or due

    Grace Period: Additional time allowed to make a payment before it is considered late

    Installment Credit: Merchandise and services are paid for in two or more regularly scheduled payments of a set amount. Interest is included

    Interest: Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt

    Loan: Act of lending something to someone

    Revolving Credit: Many items can be bought using this plan as long as the total amount does not go over the credit user’s assigned dollar limit. Repayment is made at regular time intervals for any amount at or above the minimum required amount. Interest is charged on the remaining balance

    Single Payment: Items and services are paid for in a single payment, within a given time period, after the purchase. Interest is usually not charged

  • Materials/Specialized Equipment Needed

    Equipment:

    • computer with projector for PowerPoint™ presentation
    • copies of handouts (see All Lesson Attachments tab)
    • magazines
  • Anticipatory Set

    Before class begins:

    On a table in the center of the room, place various items related to banking.

    • brochures/handouts from credit card companies
    • sample credit/debit card
    • credit card statement
  • Allow students to observe the supplies and ask the following questions:

    • Do you know anyone with a credit card?
    • What do you think people use credit cards for?
    • How many credit cards do you think your parents have in their wallet?

  • Direct Instruction with Special Education Modifications/Accommodations

    Distribute handout, KWL – Credit (see All Lesson Attachments tab) and have students fill out the first two columns of the chart. Ask students to write down what they already know about types of credit and obtaining credit. The last column will be completed during the lesson closure. Introduce PowerPoint™, Give Me Some Credit (see All Lesson Attachments tab). Students will be expected to take notes and follow along throughout the presentation.

    Individual Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • checking for understanding
    • providing assistance with note-taking
    • supplying student with a copy of the PowerPoint™ presentation

  • Guided Practice with Special Education Modifications/Accommodations

    Distribute handout, Credit Scavenger Hunt (see All Lesson Attachments tab) and instruct students to use the magazines to find advertisements for three credit cards. Students will use the advertisements to complete the handout. Students will use the advertising information to determine the actual cost of an item when purchasing with credit. This information will be entered into the Cost of Credit calculator on the Practical Money Skills website.

    Individual Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • checking for understanding
    • help students locate resources

  • Independent Practice/Laboratory Experience with Special Education Modifications/Accommodations

    Distribute the handout, Credit Interview (see All Lesson Attachments tab). Instruct students to interview two adults about their experiences using and obtaining credit. Use the responses to complete the handout.

    Individual Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • checking for understanding
    • supply student with a template to help guide them through the interview

  • Lesson Closure

    Ask students to take out the handout, KWL – Credit (see All Lesson Attachments tab) and complete the last column. If the students have any unanswered questions, use this time to answer them.

  • Summative/End of Lesson Assessment with Special Education Modifications/Accommodations

    Students will complete a Credit Q&A on their own paper. Students will ask and answer a total of six questions, three about forms of credit and three about obtaining credit. Make sure students understand they will be graded based on their ability to clearly answer the questions they ask.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • graphic organizer to help outline thoughts
    • grade according to work completed
    • provide praise and encouragement
    • do not grade for spelling

  • References/Resources

    Websites:

    • How do I choose a credit card?
      Before you apply for a credit card or accept a pre-approved offer, examine the credit card closely. The annual percentage rate, annual fee, and transaction fees are just a few factors to consider closely.
      http://www.whatsmyscore.org/break/creditcardchoices.php

    *Cost of Credit
    Calculates the actual cost of items when using credit.
    http://www.practicalmoneyskills.com/calculators/calculate/costOfCredit.php?calcCategory=debt

  • Additional Required Components

    English Language Proficiency Standards (ELPS) Strategies

    • word wall
    • draw visual representations of terms on word wall
    • add terms and definitions to personal dictionary
  • College and Career Readiness Connection

    AchieveTexas Career Cluster Crosswalks

    The Career Cluster Crosswalks housed on the AchieveTexas website http://www.achievetexas.org/index.html provide Texas teachers with a direct connection between their CTE course TEKS and the College and Career Readiness Standards (CCRS). Language Arts, Mathematics, Science, Social Studies, and Cross-Disciplinary integration are the focus of the CCRS. These college and career readiness standards are essential in the planning and delivery of CTE lessons. The extent to which the integration occurs is determined by the methods and strategies utilized by each teacher.

    Career Cluster Crosswalks for Education and Training, Hospitality and Tourism, and Human Services Career Clusters can be found at:
    http://www.achievetexas.org/Career%20Cluster%20Crosswalks.htm

  • Recommended Strategies

    Reading Strategies

    Have students read the following articles from Practical Money Skills and discuss findings with class.

    Choosing a Card
    https://www.practicalmoneyskills.com/personalfinance/creditdebt/cards/choosing.php
    Understanding Credit Costs
    https://www.practicalmoneyskills.com/personalfinance/creditdebt/cards/understanding.php

    • Encourage students to connect reading to their life experiences or prior knowledge.
    • Word Attack Strategies. Have students note words that are unfamiliar to them and decode the words. Additional words may be added to word wall.
  • Quotes

    Today, there are three kinds of people: the haves, the have-nots, and the have-not-paid-for-what-they-haves.
    -Earl Wilson

    Procrastination is like a credit card: it’s a lot of fun until you get the bill.
    -Christopher Parker

  • Multimedia/Visual Strategies

    PowerPoint™:

    • Give Me Some Credit

    Website:

  • Graphic Organizers/Handout

    Graphic Organizer:

    • KWL – Credit

    Handouts:
    • Credit Scavenger Hunt
    • Credit Interview

  • Writing Strategies

    Journal Entries:

    • Credit is needed when…
    • What is the difference between wants and needs?

    Writing Strategy:

    Writing Strategy:
    • RAFT (Role/Audience/Format/Topic) writing strategy:
      Role: Financial Advisor
      Audience: Potential Credit Card User
      Format: Informal Letter
      Topic: Develop strategies to ensure a credit card user is able to obtain credit

  • Communication 90 Second Speech Topics

    • Explain the difference between the types of credit available.
    • What character traits are needed to obtain and maintain good credit?
  • Other Essential Lesson Components

    Enrichment activity

    Read various topic related articles from Practical Money Skills or other source such as:

    See Reading Strategies.

  • Family/Community Connection

    Contact a financial advisor in your area and invite them to discuss ways to be a responsible credit card user.

  • CTSO connection

    STAR Events:

    • Applied Technology- An individual or team event: Recognizes participants who develop a project using technology that addresses a concern related to Family Consumer Sciences and/or related occupations. The project integrates and applies content from academic subjects.
    • Chapter Service Project (Display and Manual): A team event – Recognizes chapters that develop and implement an in-depth service project that makes a worthwhile contribution to families, schools, and communities. Students must use Family Consumer Sciences content and skills to address and take action on a community need.
  • Service Learning Projects

    Successful service learning project ideas originate from student concerns and needs. Allow students to brainstorm about service projects pertaining to lesson. For additional information on service learning see:

    http://www.servicelearningtexas.org

    Organize a panel of various credit card users to come a discuss their experiences and methods for properly using credit

    See Family/Community Connection tab.