Credit Card Use and Management
Purpose: To define common credit card terminology, understand the proper use of credit cards, and to recognize the positive and negative effects on one’s credit. Prerequisites: The student should have basic understanding of what a credit card is. He/she should be able to perform basic mathematical operations (addition, subtraction, multiplication, and division), and at least be able to perform those operations for decimals using a calculator (preferably using pencil and paper) Materials: Credit Worksheets Pencil Calculator Process: 1) Explain that you will be discussing credit cards. Ask the student to name major credit card companies. Ask them where else they can receive credit cards from (i.e.: The Home Depot, Macy’s, etc.) 2) Have the student define the following terms to the best of their understanding: credit, finance charges, APR, credit limit, incentives. Ensure that they understand what these terms mean. 3) Introduce them to Credita, a young woman who was approved for a credit card at her favorite fashion store. Hand them the worksheet and have them read the introductory paragraph aloud. 4) Ask them to complete the worksheet to the best of their ability, providing assistance as necessary. Try to avoid using a calculator if at all possible. Conclusion: Ask the student what they would have done differently if they were Credita. What advice would they have to give her? Evaluation: A) The student should be able to define basic credit card terminology and understand how a credit card works. B) The student will have performed basic mathematical functions to solve simple financial arithmetic problems. C) The student should apply critical thinking to tell Credita what she did wrong and how one should properly use a credit card.