Types of Credit Activities

MATH: Auto and Mortgage Monthly Payments

In this activity, students will be able to:

  • Practice calculating monthly costs of auto and mortgage loan payments
  • Understanding how much money they need to borrow, how long the loan is, and annual interest rates
  • Substitute variables in a complex formula

CARTOONS: Car Payments

In this activity, students will be able to: 

  • Examine a number of cartoons about car payments and choose one to analyze in more depth
  • Explain the cartoon's key message about car payments and how it depicts that message

INTERACTIVE: Shady Sam

In this activity, students will be able to:

  • Play the role of a loan shark 
  • Understand what tactics lenders use to maximize their profits
  • Determine which loan terms increase profits for lenders
  • Learn about different types of loans and fees lenders offer and charge

MOVE: Credit Musical Chairs

In this activity, students will be able to:

  • Classify different types of credit in three ways:
    • Installment loans vs. revolving credit
    • Secured debt vs. unsecured debt
    • Variable rate vs. fixed rate
  • Get up, out of their seats, moving around the room to learn content in a fun, fast-paced fashion

ANALYZE: Alternative Lending (Sp)

In this activity, students will be able to:

  • Explore alternative lending options (beyond banks and credit unions). This includes peer-to-peer lending, microcredits, crowdfunding, and small business loans
  • Research the target demographic, credit check, fees, interest rates, minimum amounts, term and more
  • Available in English & Spanish

ANALYZE: Categorizing Credit (Sp)

In this activity, students will be able to:

  • Analyze different types of credit (like auto loans, credit cards, money borrowed from a friend, and more)
  • Categorize the credit in three ways:
    • Installment loans vs. revolving credit
    • Secured debt vs. unsecured debt
    • Variable rate vs. fixed rate
  • Available in English & Spanish

ANALYZE: Understanding Amortization

In this activity, students will be able to:

  • Develop an understanding of how a loan is repaid by analyzing an amortization table
  • Use the repayment schedule for a personal loan for a vacation to see how changes to monthly payments can affect total interest paid and the term of payment.

CALCULATE: Shopping with Interest (Sp)

In this activity, students will be able to:

  • Use an online credit card calculator to work through a variety of credit card debt scenarios caused by every day spending
  • Investigate the impact of interest on the cost of their purchases
  • Available in English & Spanish

CALCULATE: Using a Mortgage Calculator (Sp)

In this activity, students will be able to:

  • Use a mortgage calculator to help different individuals determine how their mortgage will look, including their monthly payment, total interest, down payment
  • Available in English & Spanish

COMPARE: Auto Loans (Sp)

In this activity, students will be able to:

  • Use an auto loan calculator to compare the cost of different auto loans
  • Explore how the down payment, APR, interest, cash allowance, credit score and fine print affect the terms of an auto loan
  • Available in English & Spanish

COMPARE: Select a Credit Card

In this activity, students will be able to:

  • Determine what features they value in a credit card and then conduct online research to determine which credit cards best meet their needs
  • Compare and then select which card would be best for them

COMPARE: Which Repayment Option is Best? (Sp)

In this activity, students will be able to:

  • Take a variety of factors about individuals (salary, location and student loan debt)
  • Use a student loan repayment calculator to preview their repayment options
  • Determine which repayment option is best.
  • Available in English & Spanish

DEBATE: Should College Students Have Credit Cards?

In this activity students will:

  • Study research around the pros and cons of college credit usage to learn how to effectively form a debate.

FINE PRINT: Credit Card Statement

With this Fine Print students will be able to:

  • Read a credit card statement 
  • Understand how certain sections of a credit card statement impact other sections

FINE PRINT: Mortgage Bill

With this Fine Print students will be able to:

  • Understand how to read a sample mortgage statement
  • Analyze the different itemized amounts about a home loan, including outstanding principal, interest rate, escrow, and other fees

FINE PRINT: Schumer Box

With this Fine Print students will be able to:

  • Understand how to read a credit card agreement through a step-by-step analysis of the Schumer Box (Note: The Schumer Box summarizes key terms of the agreement)
  • Analyze the different fees associated with credit cards and how they can be avoided

PLAY: Should They Open a Credit Card? (Sp)

In this activity, students will be able to:

  • Analyze the profiles of a few different individuals and
  • Determine whether opening a credit card is a smart choice for them
  • Examine their living situation, financial status, debt and employment to make the determination.
  • Available in English & Spanish

PROJECT: Budgeting for Your Credit Card Payments

In this Common Core Standards-aligned project, students work within the average young person’s monthly budget to make payments on credit card debt accumulated over 4 years of college. They make decisions on where to spend and save in order to pay down debt.

RESEARCH: Credit Card Laws Web Quest

In this activity, students will be able to:

  • research three major laws regarding credit cards
    • The Credit Card Accountability, Responsibility and Disclosure, or Credit CARD, Act of 2009.
    • The Fair Credit Billing Act.
    • The Truth in Lending Act.