Simulation: How Do I Apply For A Loan?
We received a email request today from a teacher for a simulation that would help students understand the loan application process. What a great request! I know that I can sometimes forget the importance of teaching the “how” when it comes to personal finance as in “how to open a bank account,” “how to open a brokerage account”…Now we had an opportunity to help a teacher and add to our simulation library at the same time.
So, I went in search of an online loan application that would not require students to provide personal information (i.e. email address or Social Security Number) and would give them a feel for what it takes to apply for a loan. I stumbled upon a website for the Maryland State Employees Credit Union (SECU) which has a clear description of the loan process. In addition, SECU has an online application that students can complete without providing an email address or SSN.
I created an Activity: How Do I Apply for a Loan which walks students through a step-by-step process so they can actually apply for a loan online. As they go through the process, they are asked a series of questions from the perspective of a lender. One line of questioning deals with the importance of various items in the application and why lenders should care.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.