• Flipchart paper/newsprint or large board and markers/chalk
• Computers with Internet access 
• The Complete Control Your Money: A Quick and Easy Guide with Worksheets (2001).  Syracuse, NY:  New Readers Press
• Handout 1

Word Bank:

Introductory Activity:  What are my personal views on credit?

Whole group discussion

• Today we are going to look at credit and securing loans.  What does “secure a loan” mean?  Have you ever applied for a loan?  A credit card?  What do you think about credit?  Is it a good idea, or a bad idea?

  Activity 1:  "Cash or Charge"
   

• Let's do a quick activity to see how we feel about using cash or credit.

  Ask the group to turn to page 47 of the Control Your Money text.  Review the questions and directions before the students start work on it.  Students can write their answers on their own paper.
   

• (After students have completed the questions)

  What do you think about having a credit card?

  What are some of the problems with having a credit card?

  Activity 2:  Brainstorming:  The Advantages and Disadvantages of Using Credit.
   

• Now work in small groups.  On a piece of flipchart paper, make a list of all the advantages and disadvantages of using credit that you can think of.  When you're finished, choose someone from your group to present your list to the class.

  Activity 3:  What lenders are looking for
   

• When a bank or credit card company is thinking about giving you a loan or credit, they consider three things about you.  They are called capacity, character, and collateral.  Can anyone explain any of these words?

You may want to write the explanations of these 3 terms on the board for students to copy.

• Capacity means that you are capable of paying back the loan.  You will make enough money to pay the loan back. You have the capacity to repay it.

• Character is about your personality.  If you have good character, you will be dependable, honest and prompt in repaying the loan.

• Collateral is property.  Do you have anything valuable that could help you pay back the loan if necessary?  Could you sell something valuable to get money to pay it back?

• Read page 48 and the top of page 49 in Control your Money  to find out more of what lenders want in a customer.  Write notes on information that is new to you.  Share the new information with your classmates.

Activity 4:  Who gets the loan?

Now we are going to read some case studies (Handout 1), stories about some people who want a loan or credit.  In small groups, you will decide who should get a loan or credit, and why.  Then we'll talk about your group's answers.

AHS options:  Have students write a paragraph describing their reaction to each candidate.

You can give students the option of sharing their paragraph with the class.  The topic may be sensitive for some, so it's best to leave the choice to share up to the individual students.

Activity 5:  What about you?

• Now think about yourself.  Are you a good candidate for credit?  Should a bank give you a loan?  Write a paragraph explaining why you think you deserve a loan or credit card, or what you plan to do to improve your chances.  If you have a loan or credit card already, explain why you think your application was accepted.  E-mail the paragraph to your teacher.

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