Read the Dear Penny letter written by “L.” It is obvious that their family is going through financial turmoil. Without reading Penny’s reply, what would you write in response? Would you know where to turn?
Debt is not a goal, yet many Americans find themselves in the hole financially. According to Nerd Wallet, the average household credit card debt surpassed $6,000 in 2018. List some reasons why you believe that households may choose to use credit cards. Identify the ideas on your list as beneficial or detrimental. When might you use a credit card? How would you use a credit card? What does it mean to have a balance on a credit card? Some families are unable to pay off their debt monthly and run into an overwhelming problem where each month they become further and further into debt.
Read the Nerd Wallet 2018 American Household Credit Card Debt Study (be sure to look at each graph carefully).
Take note of the following:
Students can make a newsletter or social media posts about the knowledge they gained about credit and debt.
Where to Turn When There Are No More Pennies to Pinch . . .
Here is a copy of the student guide to use with this post.
Florida Financial Literacy Standards:
SS.912.FL.4.5: Explain that lenders make credit decisions based in part on consumer payment history. Credit bureaus record borrowers’ credit and payment histories and provide that information to lenders in credit reports.
SS.912.FL.4.7: Describe that, in addition to assessing a person’s credit risk, credit reports and scores may be requested and used by employers in hiring decisions, landlords in deciding whether to rent apartments, and insurance companies in charging premiums.
SS.912.FL.4.8: Examine the fact that failure to repay a loan has significant consequences for borrowers such as negative entries on their credit report, repossession of property (collateral), garnishment of wages, and the inability to obtain loans in the future.
SS.912.FL.4.9: Explain that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors.
Created by Deborah Kozdras and Brittany Sampson