The Credit Card Crunch Classroom Guide Objectives Students will be able to explain why it is a good practice to pay off a credit card balance every month. Students will be able to state why it is a good idea to have only two credit cards and what each card should be used for. Students will be able to determine how much credit card debt they could carry monthly based on their current income. Students will be able to describe some of the consequences of carrying a bad credit rating. Students will be able to describe the difference between a credit card and a debit card.

Classroom Guide Web Resources NH Frameworks

Vocabulary finance charges consumer debt wants vs. needs credit line interest rate minimum balance true cost of credit home equity loan unsecured debt credit score credit report zero balance immediate gratification Before Viewing Poll your students and find out how many have received credit card applications and how many currently have a credit card. Take the online credit card card quiz at the Credit Card Simulator site. This can be done as a group activity online or you can copy the quiz questions and do this as a paper and pencil activity. During Viewing Pause video at 5:04 when Dan Hebert from the NH Jump$tart Coalition states that American teens are a 169 billion dollar industry. Have students discuss the types of purchases they make. Are their purchase wants or needs? If they had access to credit would they spend more? Dan Hebert stated that the average teen spends $91 per week, does that figure hold true for your class? Pause video at 20:24 and have students list some of the tips on using credit cards wisely that were discussed during the interview with Becky Palmer of the Consumer Credit Counseling Service of NH and Vermont, Inc. After Viewing Play the online credit card card game at the Credit Card Simulator site or try the Credit Card Activity from math teacher Kimberly Rust that asks students to create and then charge to a fake credit card and watch how interest accrues. Have students visit the Cardweb site and research credit cards.